Is electronic signature legal in Indonesia? What laws regulate electronic signature mainly?

Electronic signatures are legal in Indonesia and their use is mainly subject to 2008 CONCERNING ELECTRONIC INFORMATION AND TRANSACTIONS, (“EIT”) and the regulation of Government Regulation No.71 of 2019 ("GR 71 / 2019").

What is an electronic signature in Indonesia?

ETI regulations: electronic signature is a set of electronic data, including but not limited to text, sound, images, photos, electronic data exchange, signs, numbers, access codes, symbols, etc., which are attached to other electronic data used by means of verification and authentication, associated or linked to it.

What are the types of electronic signature recognized in Indonesia? What are the requirements for each separation?

Indonesian electronic signatures are divided into the following two categories: Uncertified electronic signatures and Certified electronic signatures.

1.Uncertified electronic signatures

Electronic signatures that have not been authenticated using the services of Indonesian electronic authentication providers.

An uncertified electronic signature shall have legal effect and legal force within the scope of meeting the following requirements:

• The creation data of the electronic signature can only be associated with the signer;
• Data created by electronic signature can only be controlled by the signer in the process of electronic signature;
• Any changes to the electronic signature after signing are clearly known;
• Any changes to the electronic information related to the electronic signature after the signing time are clearly known;
• Identifying the signatory by some methods;
• There are certain ways to prove that the signatory has agreed to the relevant electronic information.

The Electronic Signature Ordinance does not specify the composition of "certain methods" of identifying signers, but in practice the term is construed to refer to encryption technology.

2.Certified electronic signatures

• To meet the validity requirements of the electronic signature;
• Use the electronic certificate made by the electronic certification service provider institution of Indonesia.;
• Created using a certified electronic signature generation device, which is software or hardware configured and used to create certified electronic signatures.

The main difference between uncertified and certified electronic signatures is not the enforceability of electronic signatures, but the value of evidence in court. Generally, non-certified electronic signatures are relatively weak in terms of evidence. Unauthenticated electronic signature must be able to authenticate to be accepted as evidence by the court.

What should the electronic information using the electronic signatures contain?

In accordance with Article 62 of GR 71 / 2019, when a signatory agrees to use electronic signatures to sign electronic information, it must use confirmation and / or other mechanisms to indicate the intention and purpose of the signatory to be binding in an electronic transaction.

The electronic signature on the electronic information shall at least use the electronic signature to create the data and include the signing time.

In which cases must traditional signatures be used in Indonesia?

The use of electronic signatures is legal, acceptable and enforceable in Indonesia, as long as the conditions of the EIT law are met. However, certain documents must be signed with a wet-ink signature, including:

• It must be a notarized contract (such as the articles of association, shareholder resolution, etc.) or a document presented by the land transferor;
• Documents that must be made in written form according to current laws (such as negotiable instruments, letters used in court proceedings).