To Avoid Blocking, Here's How to Register for Private PSE

PERTANYAAN

Recently, there have been lots of news regarding the PSE being blocked by the Kominfo because it has not yet been registered. What is the process for private PSE registration so that it will not be blocked?

INTISARI JAWABAN

 

Electronic System Organizers (Penyelenggara Sistem Elektronik/ "PSE"), both public and private, are required to register through the OSS. If a PSE fails to register, one of the sanctions that may be imposed is blocking.

As for what is being discussed, there are PSEs that do not register until they are finally sanctioned by being blocked by the Ministry of Communication and Information Technology, Indonesia (Kementerian Komunikasi dan Informatika Republik Indonesia/ “Kominfo”). In order for this not to happen again, how is the registration of PSE, specifically the private one?

Please read the review below for a further explanation.

ULASAN LENGKAP

This article is an English translation of Biar Tak Diblokir, Ini Cara Pendaftaran PSE Lingkup Privat which was written by Nafiatul Munawaroh, S.H., M.H and was published on Tuesday, 30 August 2022.

All legal informations which are available through Klinik hukumonline.com have been prepared for educational purposes only and are general in nature (read the complete Disclaimer). In order to obtain legal advice specific to your case, please consult with Justika Partner Consultant.

An Obligation of Private PSE Registration

Electronic System Organizers (Penyelenggara Sistem Elektronik/ "PSE") are any individuals, state administrators, business entities, and the public who provide, manage and/or operate electronic systems individually or jointly to electronic system users for their own purposes and/or the purposes of other parties.[1]

PSE is divided into two types, namely public PSE and private PSE.[2] Public PSE sector includes agencies and institutions which are appointed by the relevant agencies. Agencies in this case do not include PSE which are the regulatory and supervisory authorities of the financial sector.[3]

The private PSE sector is PSEs that are regulated or supervised by ministries/agencies based on the provisions of laws and regulations and PSEs that have internet-based portals, sites, or applications[4] which are used for:[5]

1. provide, manage, and/or operate offering and/or trade goods and/or services;
2. provide, manage, and/or operate financial transaction services;
3. deliver material or paid digital content through data network by downloading through a portal, website, sending emails, or through other applications to users’ devices;
4. provide, manage, and/or operate communication services consisting of, but not limited to short text messages, voice calls, video calls, electronic mail, digital chat room, networking services, and social media;
5. search engine services, Electronic Information provider services which are in the form of text, voice, picture, animation, music, video, film, and games or partly and/or wholly combination of it; and/or
6. process of Personal Data for operational activities which serve the public in relation to Electronic Transaction activities.

What is PSE registration and why does it need to be registered? Basically, both public and private PSE are required to register electronically through the integrated licensing service[6] or OSS.

If the PSE fails to register, they will be subject to administrative sanctions in the form of written reprimands, administrative fines, suspensions, blocking of access and/or expulsion from the list.[7]

Also read: Not All PSEs Are Required to Register, Check Out the Categories

How to Register Domestic Private PSE Sector

Prior to applying for PSE registrations, your business must first fulfil the registration requirements. In order to register private PSE, according to Aulia Zulfa, a young expert policy analyst at the Directorate of Informatics Application Governance, Directorate General of Informatics Applications at the Kominfo, the steps for PSE registration in the OSS are:[8]

1. PSEs must fulfil registration prerequisites, namely Business Identification Numbers (Nomor Induk Usaha/ “NIB”) and a relevant business license (with the relevant KBLI code);
2. After the prerequisites have been fulfilled, then the PSE may register via the OSS with the input of the relevant NIB and business license;
3. Print the PSE registration certificates;
4. A sign of PSE has been registered will appear.

It should also be noted that in order to register for the PSE, all Indonesian Standard Industrial Classification (Klasifikasi Baku Lapangan Usaha Indonesia/ “KBLI”) are eligible to register and are not limited to a certain KBLI code. If during the process there is no KBLI code for the type of business, then the main business KBLI code may be used first, this is because all types of KBLI may register for the PSE if they meet the private PSE criteria.[9]

Registration requirements for the private PSE sector are conducted before the electronic system is used by PSE as follows:[10]

1. Submitted to the Minister of Kominfo ("Minister");
2. Registration submissions are conducted through the OSS, unless otherwise stipulated by laws and regulations;
3. Submit a registration application by filling out a form which contains correct information regarding:

1. general description of the operation of electronic systems;
2. obligation to ensure information security;
3. obligation to protect personal data;
4. obligation to conduct electronic system feasibility test;

The general description of the operation of the electronic system referred to in the number 3 letter “a” above consists of:[11]

1. name of the Electronic System;
2. sector of the Electronic System;
3. uniform resource locator (URL) of the website;
4. domain name system and/or Internet Protocol (IP) server address;
5. description of business model;
6. brief description of Electronic System’s function and Electronic System’s business process;
7. information about the processed Personal Data;
8. information on the location of management, processing and/or storage of Electronic System and Electronic Data; and
9. a statement declaring that the PSE in the Private Sector guarantees and implements the obligation to provide access to Electronic System and Electronic Data in order to ensure the effectiveness of supervision and law enforcement in accordance with the provisions of laws and regulations.

According to Aulia Zulfa, the processed personal data as referred to in number 7 are the types of personal data processed by the relevant PSE. For example, to register for the PSE, the requirements are ID numbers, names, and Family Card (Kartu Keluara/ “KK”). Therefore, when PSE registers, what is written into the OSS system are their KK, ID numbers, and usernames.[12]

Registrations for Foreign Private PSE

In addition to domestic private PSE, foreign private PSE is also required to register their business.

The criteria for foreign private PSE are PSE that are established under the laws of other countries or which are permanently domiciled in other countries but are:[13]

1. provide services within Indonesian territory;
2. conduct business in Indonesia; and/or
3. its electronic system is used and/or offered in Indonesian territory.

Basically, the registration of foreign PSE or private foreign PSE is the same as the registration of domestic private PSE. However, the following information needs to be added:[14]

1. identity of the PSE in the Foreign Private Sector;
2. identity of the company head and/or identity of the person in charge;
3. domicile information and/or certificate of incorporation, by enclosing supporting documents which are translated into Bahasa Indonesia by a sworn translator;
4. number of users in Indonesia; and
5. value of transactions originating from Indonesia.
6. said supporting documents shall be translated into Indonesian by a sworn translator.

After the registration requirements are declared complete for both domestic and foreign private PSEs, then the Minister will issue the PSE registration certificate which is published on the website managed by the ministry[15] or the OSS.

For more details on how to register for PSE through OSS, you can read the private PSE registration guidelines, through Private PSE Guidelines and Infographics.

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These are the answers we can provide, we hope you will find them useful

Legal Basis:

1. Regulation of the Government Number 71 of 2019 on The Organization of Electronic Systems and Transactions;
2. Regulation of the Minister of Communication and Informatics Number 5 of 2020 on Electronic System Provider in the Private Sector as amended by Regulation of the Minister of Communication and Informatics Number 10 of 2021 on The Amendment of Regulation of the Minister of Communication and Informatics Number 5 of 2020 on Electronic System Provider in the Private Sector.

Reference:

1. Webinar Hukum Compliance Talks #6. Kupas Tuntas Pendaftaran Pendaftaran Sistem Elektronik (PSE) dan Manfaatnya bagi Pengusaha which was held on Thursday, 25 August 2020, at 14.30 – 15.55 West Indonesia Time (zone);
2. OSS, accessed on 29 August 2022, at 19.05 West Indonesia Time (zone);
3. Panduan dan Infografis PSE Lingkup Privat, accessed on 30 August 2022, at 08.05 West Indonesia Time (zone).

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[1] Article 1 number 4 Regulation of the Government Number 71 of 2019 on The Organization of Electronic Systems and Transactions (“Government Regulation 71/2019”).

[2] Article 2 section (2) Government Regulation 71/2019.

[3] Article 2 section (3) and (4) Government Regulation 71/2019.

[4] Article 2 section (5) letter a and b Government Regulation 71/2019.

[5] Article 2 section (5) letter b Government Regulation 71/2019.

[6] Article 6 section (1) and (3) Government Regulation 71/2019.

[7] Article 100 section (1) and (2) Government Regulation 71/2019.

[8] Aulia Zulfa in Webinar Hukum Compliance Talks #6. Kupas Tuntas Pendaftaran Pendaftaran Sistem Elektronik (PSE) dan Manfaatnya bagi Pengusaha which was held on Thursday, 25 August 2020, at 14.30 – 15.55 West Indonesia Time (zone);

[9] Aulia Zulfa in Webinar Hukum Compliance Talks #6. Kupas Tuntas Pendaftaran Pendaftaran Sistem Elektronik (PSE) dan Manfaatnya bagi Pengusaha which was held on Thursday, 25 August 2020, at 14.30 – 15.55 West Indonesia Time (zone);

[10] Article 2 section (3) jo. Article 3 section (1), (2), and (3) Regulation of the Minister of Communication and Informatics Number 5 of 2020 on Electronic System Provider in the Private Sector (“Regulation of Minister of Kominfo 5/2020”).

[11] Article 3 section (4) Regulation of Minister of Kominfo 5/2020.

[12] Aulia Zulfa in Webinar Hukum Compliance Talks #6. Kupas Tuntas Pendaftaran Pendaftaran Sistem Elektronik (PSE) dan Manfaatnya bagi Pengusaha which was held on Thursday, 25 August 2020, at 14.30 – 15.55 West Indonesia Time (zone);

[13] Article 4 section (1) Regulation of Minister of Kominfo 5/2020.

[14] Article 4 section (2) and (3) Regulation of Minister of Kominfo 5/2020.

[15] Article 6 Regulation of Minister of Kominfo 5/2020.