Komdigi Responds to US Highlights on PTSE Digital Policy

The Ministry of Communication and Digital Affairs (Kementerian Komunikasi dan Digital - “Komdigi”) is considering evaluating a number of national digital regulations in response to pressure from United States (“US”) tariff policies. One of these is Regulation of the Government No. 71 of 2019 (“Regulation 71/2019”) on the Organization of Electronic Systems and Transactions (Penyelenggaraan Sistem dan Transaksi Elektronik/PSETE) which has the potential to hinder cross-border digital trade, particularly in the Information and Communication Technology (“ICT”) sector.

“The impact assessment on Regulation 71 has not been extensively studied. But we may discuss it in the future,” said Komdigi Secretary-General Ismail to Hukumonline.

According to a report by the United States Trade Representative (USTR), in addition to Regulation 71/2019, implementing regulations such as Regulation of the Minister of Communication and Informatics (Kementerian Komunikasi dan Informatika - “Kominfo”) No. 5 of 2020 on the Elecctronic System Provider in the Private Sector (“Regulation 5/2020”) and its amendments in Regulation of Kominfo No. 10 of 2021 (Regulation 10/2021) are also considered burdensome for industry actors. This relates to the appeal and adjudication mechanisms in defining “prohibited content,” meaning that operators who fail to comply with these obligations risk having their access blocked.

“Overall, the regulatory review affected by the US tariffs isn’t extensive; the rest is just support for the Coordinating Ministry for Economic Affairs,” he concluded.