PSE Registration Indonesia: How to Register Your Digital Business Legally

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.

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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.

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How Ascentium Indonesia can assist

Navigating Indonesia's PSE framework can be challenging, especially for foreign companies without local regulatory knowledge. Ascentium Indonesia provides 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

Frequently Asked Questions