Guide to PSE Registration for Electronic Transactions in Indonesia

According to a joint report by Google, Temasek, and Bain & Company, Indonesia’s digital economy is projected to surpass US$ 130 billion by 2025. The major factors behind this growth are the Fintech and e-commerce sectors.

As digital payments, lending, and online shopping become standard, businesses aiming to succeed in this market must also comply with regulatory requirements. One of the most critical is to register as a PSE (Penyelenggara Sistem Elektronik).

This article will walk you through the process of PSE Registration as electronic transactions providers in Indonesia. We will cover who needs to apply for the PSE registration and its procedures. 

Understanding Kominfo PSE Registration in Indonesia

What is a PSE Registration?

The PSE Registration in Indonesia is a mandatory registration required by the Ministry of Communication and Digital Affairs (Kominfo) for Electronic System Providers. 

Under Ministerial Regulation No. 5 of 2020 (MR 5/2020), PSE registration is required for any entity operating electronic systems providers within Indonesia or targeting Indonesian users. Its primary purpose is to ensure that your electronic systems meet stringent security and data protection standards such as ISO/IEC 27001. 

There are two types of PSE required registration: 

• Public PSE: For government-related electronic systems.
• Private PSE: For non-government electronic systems such as social media platforms and private businesses. 

Who Should Register for PSE?

Any operator of an electronic system that stores user information in Indonesia, or offers goods/services to Indonesian users, must register as a PSE. This applies to both local and foreign entities even if they are incorporated abroad.

You likely need a PSE registration if you operate:

• E-commerce platforms and marketplaces
• Mobile applications
• Websites that handle electronic transactions or collect personal data
• Platforms that gather information or process payments
• Search engines (including written, voice, images, music, video, film, games)
• Paid digital content distributors
• Social media, network services, and communication platforms (chat, video calls, emails, voice calls, online conversations)

How to Obtain a PSE from Kominfo in Indonesia

Requirements to Secure PSE Registration 

To register for a PSE in Indonesia, you must be a recognized entity (foreign or local) operating or targeting electronic services in Indonesia. The application is submitted to the Ministry of Telecommunication and IT and must cover:

1. Provide general description of the operation of the Electronic System, which include such as:
   1. Electronic System Name
   2. Electronic System Sector
   3. Electronic Sub System Sector
   4. Website/URL: The website address of the electronic system
   5. Domain Name System/ IP Server Address
   6. Server Name and Location
   7. Name of Service Provider for Management, Processing, and/or Storage of Electronic Systems and Electronic Data
   8. Location for Management, Processing, and/or Storage of Electronic Systems and Electronic Data
   9. Emerging Technology (Options: Internet of Things / Blockchain / Artificial Intelligence)
   10. Description of the Business Model
   11. Brief Description of Electronic System Function (max 200 characters)
   12. Full Description of the Business Process of the Electronic System
   13. KOMINFO Account
2. Obligation to ensure information security in accordance with the provisions of laws and regulations;
3. Obligation to protect personal data in accordance with the provisions of laws and regulations;
4. Obligation to conduct a feasibility test of the Electronic System in accordance with the provisions of laws and regulations.

If your business is a locally registered Indonesian entity (e.g., a PT PMA), you must also provide your Business Identification Number (NIB) and Taxpayer Identification Number (NPWP) as part of your application.

For foreign Electronic System Operators (ESOs) based abroad, it is possible to register for PSE and operate in Indonesia without establishing a local legal entity. However, you must register your electronic systems through the official OSS-RBA platform and comply fully with Indonesian regulations. This also includes appointing a local representative such as Emerhub or point of contact for regulatory communications in Indonesia.

PSE Registration Process in Indonesia

Here’s an overview of the PSE registration process in Indonesia: 

1. Prepare all the necessary documents including your company NIB, NPWP, as well as your electronic system profile as outlined above. 
2. Emerhub will help you create an account on the Kominfo registration portal or through the Online Single Submission (OSS) system. We will make sure that you have all the necessary documents and all information about your company’s electronic system, server location, and business processes are accurately detailed on your application. 
3. Kominfo will review and verify the submitted documents and information. 
4. Upon successful verification, a registration number is issued, allowing you to legally operate your electronic system in Indonesia. This system will then be listed on the government’s registered PSE list. 

The entire registration process typically takes around two weeks. Emerhub will assist you in preparing your application, managing the submission, and handling communications with authorities to streamline your approval.

Additional Licenses to Operate your Digital Service

PSE is merely a certification of the electronic platform provider. It is important to note that you might need to secure additional licenses depending on the type of the transactions. For instance:

1. if you are selling or commercially transact through your website (i,e: e-commerce site), must apply for PPMSE License (Trading Organizer Through Electronic Systems)
2. Payment Gateway Service, required further license from Bank of Indonesia
3. Lending company, required further license from OJK

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