E-commerce—Indonesia—Q&A guide

The following TMT practice note provides comprehensive and up to date legal information covering:

  • E-commerce—Indonesia—Q&A guide
  • 1. How can the government’s attitude and approach to internet issues best be described?
  • 2. What legislation governs business on the internet?
  • 3. Which regulatory bodies are responsible for the regulation of e-commerce, data protection and internet access tariffs and charges?
  • 4. What tests or rules are applied by the courts to determine the jurisdiction for internet-related transactions or disputes in cases where the defendant is resident or provides goods or services from outside the jurisdiction?
  • 5. What regulatory and procedural requirements govern the establishment of digital businesses in your jurisdiction? To what extent do these requirements and procedures differ from those governing the establishment of brick-and-mortar businesses?
  • 6. Is it possible to form and conclude contracts electronically? If so, how are contracts formed on the internet? Explain whether ‘click wrap’ contracts are enforceable, and if so, what requirements need to be met?
  • 7. Are there any particular laws that govern contracting on the internet? Do these distinguish between business-to-consumer and business-to-business contracts?
  • 8. How does the law recognise or define digital or e-signatures?
  • 9. Are there any data retention or software legacy requirements in relation to the formation of electronic contracts?
  • More...

E-commerce—Indonesia—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to e-commerce in Indonesia published as part of the Lexology Getting the Deal Through series by Law Business Research (published: June 2020).

Authors: SSEK Indonesian Legal Consultants—Fahrul S. Yusuf; Albertus Jonathan Sukardi

1. How can the government’s attitude and approach to internet issues best be described?

The Indonesian government initially adopted a conservative and relatively traditional approach to regulating internet-based activities. Prior to 2008, there was no legislation or guidelines in Indonesia that regulated the internet and how electronic information was offered and consumed, for both commercial and non-commercial purposes. In the five to seven years before 2008, Indonesia experienced the rapid development of information technology and the number of internet users in the country soared as the internet became the most popular medium to access electronic information. In response to this growth, the Indonesian government issued an underlying regulation to address potential issues resulting from activities conducted on the internet. On 21 April 2008, through the House of Representatives, the Indonesian government issued Law No. 11 of 2008 on Electronic Information and Transactions (the ITE Law).

The idea behind the ITE Law was to set out basic rules and provide a generic understanding of the internet and related activities. The ITE Law set out various terms and definitions relevant for electronic transactions and introduced a number of administrative

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