Indonesia acknowledges digital signatures or e-signatures as a valid signature, regulated by the Electronic Transaction Regulation. Under the Electronic Transaction Regulation, "digital signature" is defined as a signature comprised of electronic information attached, associated or related to other electronic information used as a tool for verification and validation purposes.

A digital signature shall have a legal binding force to the extent that:

  • the data used in forming the digital signature only relates to the signatory;
  • the data used in forming the digital signature during the signing process shall only be under the control of the signatory;
  • there is a certain method to identify the signatory; and
  • there is a method to indicate that the signatory has given his or her consent to the related electronic information.

There are two types of digital signature recognized in Indonesia, ie, certified digital signature and uncertified digital signature. A certified digital signature is created by procuring the services of an electronic certification provider and shall be evidenced by an electronic certificate. An uncertified digital signature is created without engaging the services of an electronic certification provider.

Reproduced with permission of Law Business Research Ltd. This article was first published in Lexology Getting the Deal Through – e-Commerce 2020 (Published: August 2019). For further information, please visit www.gettingthedealthrough.com.

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