Indonesia’s digital economy is expanding rapidly, offering significant growth opportunities. Foreign platforms must abide by local regulations to access this market legally. That regulation is PSE registration (Penyelenggara Sistem Elektronik).
Failure to register can result in blocking, which disrupts service to Indonesian users and damages reputation and trust. Therefore, PSE registration is essential for your business to avoid potential risks in the future.
Who must register as a PSE?
Any digital service provider that offers services accessible to Indonesian users must register as a Penyelenggara Sistem Elektronik. It does not matter whether you have a local office, infrastructure, or legal entity in Indonesia.
Under Government Regulation No. 71/2019 (PP 71/2019) and Ministerial Regulations No. 5/2020 & No. 10/2021, registration is required if a platform:
- Provides electronic services (web apps, mobile apps, APIs) used within Indonesia
- Collects or processes personal data of Indonesian users
- Facilitates online transactions or communication with Indonesian users
- Delivers content, offers applications, or hosts cloud services accessible from Indonesia
Key Requirements for Businesses
Before initiating your PSE registration in Indonesia, it is important to understand a few critical criteria that apply broadly to all digital platforms:
- No Business Entity Required: Platforms can be fully foreign-based, with no local Indonesian office.
- No Minimum Threshold: There is no user or transaction volume requirement. Even startups or niche platforms must comply if they meet the service criteria.
- PSE obligations apply to all platforms, including (but not limited to): SaaS applications, cloud infrastructure, e-commerce, fintech services, content-sharing platforms, streaming services, and communication tools.
Read more: Investing in Indonesia’s digital economy is profitable
Compliance guide for registered PSEs
Once registered under the PSEs regime, foreign digital platforms must comply with various operational and regulatory requirements, such as:
1. Registration via OSS‑RBA
You must submit company details, technical specifications, domain name, server architecture, and other system information via the OSS (Online Single Submission) Risk‑Based Approach portal.
2. Content Moderation & Takedown
When Kominfo issues a takedown request (e.g., for content deemed illegal, harmful, or inciting unrest), the PSE must act within 24 hours (or 4 hours for urgent cases).
3. Data Protection & Consent
Comply with Law No. 27 of 2022 on Personal Data Protection (PDP Law), which regulates how personal data is collected, stored, transferred, and used. Ensure transparency, legal basis, and protection of user rights.
4. System Integrity & Incident Reporting
Maintain system security, prevent cyber risks, and promptly report incidents to Kominfo as required.
5. Annual Reporting & Updates
Keep your registration information current and submit periodic compliance reports, especially when changing your systems or company structure.
Risks of ignoring PSE registration for your businesses
If your platform or service fails to fulfill its PSE registration duties, these adverse outcomes may follow:
- Blockage by Kominfo: Your service may be blocked or restricted, making it inaccessible in Indonesia
- Damaged Trust & Reputation: Being publicly listed as non-compliant can erode user and partner confidence
- Legal Risk / Liability: Violations can lead to administrative sanctions or fines under data protection laws
- Missed Opportunities: Local partners or government contracts often require regulatory compliance as a prerequisite
Effectively, ignoring PSE obligations risks losing your foothold in Indonesia’s fast-growing digital ecosystem.
Read more: Investment opportunities in Indonesia: Top sectors & investor challenges
How InCorp can assist
Navigating Indonesia’s PSE framework can be challenging, especially for foreign companies without local regulatory knowledge. InCorp Indonesia (an Ascentium Company) provides a comprehensive support to ensure Penyelenggara Sistem Elektronik compliance, including:
- Managing OSS submissions and securing your TD‑PSE certificate
- Handling translations and preparing technical documentation
- Monitoring regulatory updates and modifying records as needed
- Coordinating PSE registration with PDP law, cyber laws, and licensing
Contact us today to simplify compliance, avoid penalties, and keep your digital services active in Indonesia’s market.
Frequently Asked Questions
Who must register as a PSE in Indonesia?
Any digital service provider offering services accessible to Indonesian users must register, even without a local office or entity.
What types of platforms are covered under PSE regulations?
Platforms such as SaaS, cloud services, e-commerce, fintech, streaming, content-sharing, and communication tools must comply.
Is there a minimum size or threshold for Penyelenggara Sistem Elektronik?
No. Registration is required regardless of user numbers or transaction volume—even for startups or niche platforms.
How do business register as a PSE?
Registration is done online via the OSS-RBA portal by submitting company, technical, and system details.
What are the key compliance obligations after registration?
Registered PSEs must follow content takedown requests, comply with data protection laws, ensure system security, report incidents, and submit annual updates.
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Disclaimer
The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind.
We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials. We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website.
Verified by
Hotdo Nauli
Senior Legal & Delivery Manager at InCorp Indonesia
Hotdo heads the Legal and Delivery team at InCorp Indonesia, managing Product Registration, Legal Advisory, and Business Licensing. With over 8 years of experience, she focuses on compliance and integrity, ensuring all client operations align with Indonesian laws and regulatory standards, including contract reviews and sector-specific licenses. She is also a licensed advocate and a member of the Indonesian Advocates Association (PERADI).
