to Indonesian

ELUCIDATION OF LAW OF THE REPUBLIC OF INDONESIA
NUMBER 11 OF 2008

CONCERNING
ELECTRONIC INFORMATION AND TRANSACTIONS

I. GENERAL

Utilization of Information Technology, media, and communications has globally changed both society behavior and human civilization. The development of information technology and communications has also contributed to the borderless of world connection and has significantly made social, economic, and cultural changes rapidly. Today, Information Technology becomes a double-edged sword, that is, to give contributions to the improvement of human welfare, advance, and civilization, and at the same time, becomes effective means for unlawful acts.

Today, a regime of a new law is born, known as cyber law or telematics law. Cyber law is internationally used as a legal term concerning the utilization of information technology and communications. Likewise, telematics law is the embodiment of the convergence of telecommunications law, media law, and informatics law. Other terms also used are law of information technology, virtual world law and visual law. Such terms were coined after activities carried out through computer system networks and communications systems in the scope of both local and global (Internet) by taking advantage of computer system based information technology that constitutes virtually-visible electronic systems. Legal issues frequently faced are when those involve the conveyance of information, communications, and/or transactions in an electronic manner, especially a matter of proof and matters that concern legal acts committed via electronic means.

What is meant by electronic system is computer system in a broad sense that includes not only computer hardware and software, but also telecommunications networks and/or electronic communications systems. Software or a computer program is a collection of instructions embodied in the form of language, code, scheme, or other forms when interfaced with computer readable media is able to make computers work to execute special functions or to deliver special results, including preparation in writing such instructions.

Electronic systems are also used to explain the existence of information systems that constitute application of telecommunications network based information technology and electronic media, functioning to write, process, analyze, display, and send or distribute electronic information. Technically or in management respect, information systems are in effect the embodiment of application of information technology products in some form of organization and management fitting the typical needs within such organization and conforming to the purpose of the functions. On the other hand, technically and functionally speaking, information systems are an integrated system between human and machines with hardware components, software, procedures, human resources, and substance of information that in their utilization include functions of input, process, output, storage, and communications.

As aforesaid, it is true the world of law has long since broadened its interpretation of principles and values when facing intangible issues, for example, the criminalization of electricity theft. Facts of cyber activities are no longer that simple in that such activities can no longer be bordered by a state’s territory, the Access to which is easily made at any time and from wherever. Loss may be sustained by both transacting actors and other persons who never enter transactions, for example, credit card frauds by internet shopping.

In addition, the verification is very important factor, considering not only the electronically information has not been accommodated by comprehensively Indonesian law of civil procedure, but in fact, also vulnerable to alteration, interception, forge and transmission to various places worldwide in second. So, the impacts as consequence may be very complex and complicated.

Broader issues also appear in the private sphere in which electronic transactions for trade via electronic systems (electronic commerce) have made a part of national and international trade. This fact shows that the convergence in the field of information technology, media, and informatics (telematics), inevitably, keeps developing in line with the invention in the field of information technology, media, and communications.

Activities via electronic media systems also called cyber (cyberspace), although virtual, they can be categorized as actual legal acts and actions. Speaking judicially, activities in cyberspace cannot be approached by parameters and qualifications of conventional law only, and if adopted such conventional method, it is too complicated and many would evade the law. Activities in cyberspace are virtual activities that have actual impacts even if the means of proof is electronic in nature.

Therefore, the subject actor must be qualified as a Person who has committed an actual legal act. In e-commerce activities, there are such things known such as electronic documents, the position of which is held equivalent to documents made on paper.

In connection therewith, attention to security and legal certainly in the utilization of information technology, media, and communications is necessary to be paid in order to develop in an optimal manner. There are accordingly three approaches to maintain cyberspace security, i.e., approaches of legal aspect, technological aspect, and social, cultural, and ethics aspect. To address security threats in the operation of electronic systems, a legal approach is absolute since without legal certainty the problems of the utilization of information technology cannot be addressed optimally.

II. ARTICLE BY ARTICLE

Article 1

Self-explanatory

Article 2

Since Information Technology utilization for Electronic Information and Electronic Transactions is cross-territorial or universal in nature, this law shall have jurisdiction over legal acts applicable not only in Indonesia and/or committed by Indonesian citizens, but also applicable to legal acts committed outside jurisdiction of Indonesia by both Indonesian citizens and foreign citizens or Indonesian legal entities and foreign legal entities having legal effect in Indonesia.

What is meant by "detrimental to the interest of Indonesia" shall include but not limited to detrimental to the interests of national economy, strategic data protection, nation’s dignity and degree, state defense and security, sovereignty, citizens as well as Indonesian legal entities.

Article 3

"Principle of legal certainty" means a legal foundation on which Information Technology and Electronic Transaction utilization as well as anything that supports its operation shall be legally recognized inside and outside the court.

"Principle of benefit" means a principle that Information Technology and Electronic Transaction utilization shall be attempted to support the process of using information in order to enable improvement of society welfare.

"Principle of prudence" means a foundation on which the parties concerned must address themselves to any aspect with potential for causing damage to both himself/herself and other party in the utilization of Information Technology and Electronic Transactions.

"Principle of good faith" means a principle that parties to an Electronic Transaction shall not aim at knowingly, without authority or unlawfully causing damage to other parties without the other parties’ knowledge.

"Principle of freedom to choose technology or technology neutrality" means a principle that the utilization of Information Technology and Electronic Transactions shall not focus on the use of certain technology in order to follow the development of future technology.

Article 4

Self-explanatory

Article 5

Paragraph 1

Self-explanatory

Paragraph 2

Self-explanatory

Paragraph 3

Self-explanatory

Paragraph 4

Letter a

Certificates that under laws must be made in writing form shall include but not limited to negotiable instruments, valuable documents, and documents used in the process of law enforcement of civil procedure, criminal procedure, and state administration.

Letter b

Self-explanatory

Article 6

Up to present, a writing form is identical to information and/or documents contained on paper only; in effect, information and/or documents can be written on any medium, including electronic media. Within the context of Electronic Systems, it is no longer relevant to distinguish the original information from its copies in that Electronic Systems can typically generate copies that make the original information can no longer be distinguished from them.

Article 7

This provision is intended that Electronic Information and/or Electronic Documents may be used as grounds from which rights accrue.

Article 8

Self-explanatory

Article 9

What is meant by "full and true information" includes:

a. Information that contains the identity as well as the status of legal subject and its competency, whether as producers, suppliers, operators or intermediaries;

b. Other information that explains certain matters of requirements for validity of agreements, as well as explains offered goods and/or services, such as names, addresses, and descriptions of goods/services;

Article 10

Paragraph (1)

Reliability Certification is intended as proof that business actors conducting trade electronically are eligible to do business upon assessment and audits by authorized agencies. Proof that Reliability Certification has been made shall be demonstrated by a trust mark certification logo on the homepage of the business actor.

Paragraph (2)

Self-explanatory

Article 11

Paragraph (1)

This Law grants recognition definitely that despite codes, Electronic Signatures have an equal position to manual signatures in general, with legal force and legal effect.

The requirements as intended by this Article shall be the requirements that minimally any Electronic Signature must satisfy. This provision gives as wide opportunities as possible to anyone to develop methods, techniques, or process for creating Electronic Signatures.

Paragraph (2)

The Government Regulation concerned such as govern techniques, methods, means, or process for creating Electronic Signatures.

Article 12

Self-explanatory

Article 13

Self-explanatory

Article 14

Information as intended by this Article shall be the information that minimally any Electronic Signature service provider must satisfy.

Article 15

Paragraph (1)

"Reliable" means the Electronic Systems shall have capabilities that match the needs of the users.

"Secure" means the Electronic Systems shall be protected in a physical and nonphysical manner.

"Proper operation" means the Electronic Systems shall have capabilities that match their specifications.

Paragraph (2)

"Responsible" means there shall be legal subjects that are legally responsible for such Operation of Electronic Systems.

Paragraph (3)

Self-explanatory

Article 16

Self-explanatory

Article 17

Paragraph (1)

This Law allows opportunities of Information Technology utilization to state administrators, Persons, Business Entities, and/or the society.

Information Technology utilization must be implemented in a proper, responsible, effective, and efficient manner in order that the society can reap as much benefits as possible.

Paragraph (2)

Self-explanatory

Paragraph (3)

Self-explanatory

Article 18

Paragraph (1)

Self-explanatory

Paragraph (2)

Choice of law made by parties in the international contracts, including electronically-made contracts, is known as choice of law. This law shall bind as law applicable to such contracts.

Choice of law in Electronic Transactions may be made only if the contracts contain foreign elements and their applicability must be in harmony with the principles of the Private International Law.

Paragraph (3)

Where there is no choice of law, the law determined applicable to the contracts shall be under the principles or tenets of the private international law.

Paragraph (4)

Forums with jurisdiction to adjudicate international contract disputes, including electronically-made contracts, shall be forums chosen by parties. Such forums may be in the form of court, arbitration, or other alternative dispute resolution institution.

Paragraph (5)

Where parties do not make choice of forum, jurisdiction of forum under the principles of the Private International Law shall apply. Such principles are known as the principle of the residence of the defendants (the basis of presence) and the principle of effectiveness that emphasizes the place of assets of the defendants (principle of effectiveness).

Article 19

What is meant by "Agreed-on" in this article shall also include agreements with respect to procedures contained in such Electronic Systems.

Article 20

Paragraph (1)

Electronic Transactions shall occur at the time of the agreements between parties, which can be in the form such as verification of data, identity, personal identification number/PIN or password.

Paragraph (2)

Self-explanatory

Article 21

Paragraph (1)

What is meant by "proxy" in this provision is authorized by a power of attorney.

Paragraph (2)

Self-explanatory

Paragraph (3)

Self-explanatory

Paragraph (4)

Self-explanatory

Paragraph (5)

Self-explanatory

Article 22

Paragraph (1)

What is meant by "Features" are facilities provided for Electronic Agent users to alter information conveyed to them, for example, facilities: cancel, edit, and confirm.

Paragraph (2)

Self-explanatory

Article 23

Paragraph (1)

Domain Names shall be addresses or identity of state administrators, Persons, Business Entities and/or the society obtained on a first applicant principle basis (first-come, first served).

The first applicant principle in Domain Name policy is different from one in the field of Intellectual Property Rights in that no substantive examination is required while it is in the registration of trademarks and patents.

Paragraph (2)

What is meant by "Infringement of the rights of other Persons", for example, infringement of registered trademarks, registered names of legal entities, names of famous Persons, and the like, in sum, detrimental to other Persons.

Paragraph (3)

What is meant by "Unauthorized use of Domain Names" is registration and use of Domain Names only aimed at inhibiting or preventing other Persons to use a name which is intuitively their proper name or product names, or cashing in on the reputation of famous or well-known Persons, or misleading consumers.

Article 24

Self-explanatory

Article 25

Electronic Information and/or Electronic Documents created into and registered as intellectual works, copyrights, patents, trademarks, trade secret, industrial designs, and the like must be protected by this Law with due regard to provisions of Rules.

Article 26

Paragraph (1)

In the utilization of Information Technology, personal data shall be a part of the privacy rights to be protected. Privacy rights shall contain the following meaning:

a. A privacy right shall be the right to enjoy personal life and be free from any invasion.

b. A privacy right shall be the right to communicate with other Persons without surveillance.

c. A privacy right shall be the right to inspect access to information about personal life of and data on individuals.

Paragraph (2)

Self-explanatory

Article 27

Self-explanatory

Article 28

Self-explanatory

Article 29

Self-explanatory

Article 30

Paragraph (1)

Self-explanatory

Paragraph (2)

Technically, such prohibited acts as intended by this paragraph may be committed through, such as:

a. communicating, sending, transmitting or attempting such information to be received by any Person whomsoever unauthorized to receive it; or

b. knowingly inhibiting such information from being received or making it fail to be received by the authorized to receive it within the government and/or regional governments.

Paragraph (3)

Security systems are systems that restrict access to computers or prohibit access to computers by category or classification of users and specified levels of the authority.

Article 31

Paragraph (1)

What is meant by "Interception or wiretapping" is activity to listen, record, reroute, alter, block, and/or log transmission of nonpublic Electronic Information and/or Electronic Documents, whether communications cable networks or wireless networks, such as electromagnetic waves or frequency radio.

Paragraph (2)

Self-explanatory

Paragraph (3)

Self-explanatory

Paragraph (4)

Self-explanatory

Article 32

Self-explanatory

Article 33

Self-explanatory

Article 34

Paragraph (1)

Self-explanatory

Paragraph (2)

What is meant by "Research activity" is research conducted by authorized research institutions.

Article 35

Self-explanatory

Article 36

Self-explanatory

Article 37

Self-explanatory

Article 38

Self-explanatory

Article 39

Self-explanatory

Article 40

Self-explanatory

Article 41

Paragraph (1)

Self-explanatory

Paragraph (2)

What is meant by "Institution formed by society" is institution engaged in the field of information technology and electronic transactions.

Paragraph (3)

Self-explanatory

Article 42

Self-explanatory

Article 43

Paragraph (1)

Self-explanatory

Paragraph (2)

Self-explanatory

Paragraph (3)

Self-explanatory

Paragraph (4)

Self-explanatory

Paragraph (5)

Letter a

Self-explanatory

Letter b

Self-explanatory

Letter c

Self-explanatory

Letter d

Self-explanatory

Letter e

Self-explanatory

Letter f

Self-explanatory

Letter g

Self-explanatory

Letter h

What is meant by "Expert" is a Person who has special expertise in the field of Information Technology, and whose knowledge thereof is reliable, whether academically or practically.

Letter i

Self-explanatory

Paragraph (6)

Self-explanatory

Paragraph (7)

Self-explanatory

Paragraph (8)

Self-explanatory

Article 44

Self-explanatory

Article 45

Self-explanatory

Article 46

Self-explanatory

Article 47

Self-explanatory

Article 48

Self-explanatory

Article 49

Self-explanatory

Article 50

Self-explanatory

Article 51

Self-explanatory

Article 52

Paragraph (1)

Self-explanatory

Paragraph (2)

Self-explanatory

Paragraph (3)

Self-explanatory

Paragraph (4)

This provision is intended to sentence any unlawful act that satisfies the elements as intended by Article 27 through Article 37 committed by corporations (corporate crimes) and/or by the management and/or staff with capacity to:

a. represent the corporations;

b. make decisions for the corporations;

c. make supervision and control over the corporations;

d. carry out activities for the benefit of the corporations.

Article 53

Self-explanatory

Article 54

Self-explanatory

SUPPLEMENT TO STATUTE BOOK OF THE REPUBLIC OF INDONESIA NUMBER 4843