eSignature Legality & Law in Indonesia

The legality overview

Electronic signatures are legally recognized in Indonesia and are governed by several regulations:
1. Law No. 11 of 2008 on Electronic Information and Transactions (ITE Law)

• Amended by Law No. 19 of 2016 and further by Law No. 1 of 2024.
• Recognizes the legal validity of electronic signatures.

2. Government Regulation No. 71 of 2019 on the Operation of Electronic Systems and Transactions (GR 71/2019) provides detailed provisions for the application of electronic systems and transactions.

3. Government Regulation No. 80 of 2019 on Trade Through Electronic Systems
Specifically addresses electronic transactions in commerce.

4. Minister of Communications and Informatics (MoCI) Regulation No. 11 of 2022 which establishes procedures for managing electronic certification.

Indonesia distinguishes its eSignature into two types, electronic signature and certified-based digital signature, that differ on their legal standings.

Types of eSignature used

Indonesia recognizes two types of electronic signatures under its eSignature Regulations, both of which are legal, admissible, and enforceable if specific conditions are met.

Certified electronic signature (Digital signature)

Certified electronic signatures, often referred to as digital signatures, meet stricter requirements and provide stronger evidentiary value in legal proceedings. These signatures offer higher evidentiary & legal effect, equal to the handwritten signature. Therefore, the signature must:

• Be created using an electronic certificate issued by a registered Indonesian electronic certification provider (ECP), or known as PSrE in Bahasa Indonesia.
• Use a certified signature generation device (software or hardware) specifically configured for certified signatures.
• Created using an asymmetric cryptosystem with PKI (Public Key Infrastructure) to ensure document’s security
• Comply with the general enforceability requirements for electronic signatures (see below).

Uncertified electronic signature

Uncertified electronic signatures do not involve a registered ECP/PSrE but can still be enforceable if they fulfill the following criteria:

• The unique signature data must be associated only with the signatory.
• At the time of signing, the signature data must be in the signatory’s possession.
• Alterations to the signature or the associated electronic information must be traceable.
• The signatory must be identifiable through recognized methods, often encryption.
• The signatory must provide clear consent to the electronic information.

While valid, the uncertified electronic signature may be easier to challenge in court due to weaker traceability.

Permitted usages in Indonesia

In Indonesia, electronic signatures are widely used across various sectors without specific restrictions on most document types. The law does not mandate the use of certified electronic (digital) signatures for any particular documents or transactions. However, the adoption of eSignatures in public and private sectors is influenced by individual policies, government initiatives, and court recognition.

General Usage and Government Transactions

• No special requirements apply for eSignatures in government transactions.
• The acceptance of eSignatures varies based on the policies of individual government entities.
• A notable example is the Online Single Submission (OSS) system, which uses eSignatures for issuing business licenses.

Documents Requiring Traditional Wet Signatures

While e-signatures are broadly accepted, certain high-value or regulated transactions may still require traditional signatures to comply with specific legal and procedural frameworks. These documents must be signed in hard copy or executed in specific formats by law, including:

• Commercial papers: checks, bank drafts, bearer bonds, and documents used in criminal proceedings.
• Notarial deeds:
  • Company-related documents such as deeds of establishment, articles of association, acquisition deeds, and fiduciary deeds.
  • General meeting of shareholders’ restatements and settlement agreements.
• Land-related legal actions, which must be prepared by a land deed official (PPAT), such as:
  • Sale, purchase, or exchange of land.
  • Grant of land rights or security rights over land.
  • Powers of attorney for establishing security rights.