Get to know the Private Scope Electronic System Operator (PSE Private Scope)

Get to know the Private Scope Electronic System Operator (PSE Private Scope)

“Business actors who have their own website or application are required to have a Private Scope PSE Registration Certificate. If you don’t have it, then some sanctions await.”

The more here, of course, the more widespread business actors who sell goods or offer services online. Not a few business actors have even made their own applications and websites for their selling stalls.

Therefore, the business actors in question are required to know the provisions of the Ministry of Communication and Information (Kominfo) regarding the registration of electronic system operator permits.

Based on Government Regulation Number 71 of 2019 concerning Electronic System Operation (PP 71/2019), there are two types of electronic system operators (PSE) with the following criteria:

1. PSE Public Scope
2. agency
3. Institution appointed by the institution
4. PSE Private Scope
5. PSE is regulated or supervised by the Ministry or Institution
6. PSEs that have online portals, sites or applications over the internet that are used to:
   • Offering/trading of goods/services
   • Financial transaction services
   • Delivery of paid digital materials or content
   • Communication services that are not limited to short messages, voice calls, video calls, electronic mail, and online conversations
   • Search engine service
   • Processing of personal data related to electronic transaction activities

If you look at the criteria above, then business actors who sell goods or offer services are included in the Private Scope PSE type.

Referring to the Minister of Communication and Information Technology Regulation Number 5 of 2020 concerning Private Scope Electronic System Operators (Permenkominfo 5/2020), the definition of Private Scope PSE is the implementation of electronic systems by people, business entities, and the public.

Examples of Types of PSE Private Scope

The following are some examples of business actors as Private Scope PSEs who must register, including:

1. Offering/trading of goods/services, for example:
   • Owner of marketplace application (Shopee, Tokopedia, BukaLapak, and so on)
   • Owners of self-made applications (graphic designer service applications, and so on)
   • Owner of a self-made website (selling goods/offering services, etc.)
2. Financial transaction services
   • Owners of online ticket booking applications and lodging places (tiket.com, Traveloka, etc.)
   • Owner of market place applications (Shopee, Tokopedia, Lazada, Zalora, and so on)
3. Delivery of paid digital materials or content
   • Owners of paid streaming services (Netflix, Vidio, Spotify, Joox and so on)
4. Communication services that are not limited to short messages, voice calls, video calls, electronic mail, and online conversations
   • Conversation application owner (WhatsApp, Line, Telegram, and so on)
   • Owner of social media apps (Instagram, Twitter, TikTok, Facebook and so on)
5. Search engine service
   • Owner of search engine services (Google, Yahoo!, Bing, etc.)
6. Processing of personal data related to electronic transaction activities
   • Owner of digital wallet service (Dana)
   • Owner of marketplace applications (Shopee, Tokopedia, and so on)
   • Owner of social media apps (Instagram, Twitter and so on)

Requirements to Operate the PSE Electronic System Private Scope

Each Private Scope PSE also has an obligation to operate an electronic system by fulfilling the following requirements (PP 71/2019):

1. Returns electronic information/electronic documents in full according to the retention period
2. Protect the availability, integrity, authenticity, confidentiality and accessibility of electronic information
3. Operate by procedures in the operation of electronic systems
4. Display the announced procedure in language, information, or symbols that can be understood by the parties concerned (for example, potential customers)
5. Have a sustainable mechanism to maintain the novelty, clarity, and accountability of a procedure

Obligation to Manage Domestic PSE Registration Certificates (Domestic PSE TD)

Referring to Permenkominfo 5/2020, every Domestic Private PSE (including business actors included in the criteria) is obliged to register for a PSE license, which is called a Domestic PSE Registration Certificate (TD PSE Domestic).

Domestic TD PSE is included in business licensing to support business activities (PB UMKU) which has been integrated into the Online Single Submission (OSS) service and is addressed to the Minister of Communication and Informatics. The registration obligation is carried out before the electronic system begins to be used by Private Scope PSE.

The requirement to be able to apply for Domestic PSE TD registration is to fill out the registration form. The following information must be filled in by the Private Scope PSE (Permenkominfo 5/2020):

1. Overview of the operation of the electronic system
2. Obligation to ensure information security
3. The obligation to protect personal data
4. Obligation to conduct an electronic system feasibility test

The information regarding the general description of the operation of the electronic system includes the following (Permenkominfo 5/2020):

1. Electronic system name
2. Electronic systems sector
3. Uniform resource locator (URL) website
4. Domain name system and/or internet protocol (IP) server
5. Description of business model
6. Brief description of the functions of electronic systems and business processes of electronic systems
7. Description of processed personal data
8. Description of the location for the management, processing, and/or storage of electronic systems and electronic data
9. A statement stating that the Private Scope PSE guarantees and carries out the obligation to provide access to electronic systems and electronic data in order to ensure the effectiveness of supervision and law enforcement

Benefits of Having TD PSE Private Scope

Some of the benefits that can be obtained by business actors as PSE Private Scope, among others:

1. Recorded in the TD PSE and identified on the Kominfo page, namely https://service.kominfo.go.id
2. Gaining more trust from the community
3. Building an ecosystem mapping for the implementation of electronic systems and transactions
4. Proof that it has been officially registered on the Kominfo page

Sanctions that Ensnare PSE Private Scope Users

Private Scope PSEs can be subject to administrative sanctions if they do not carry out some of the obligations mentioned above, including (Permenkominfo 5/2020):

1. Not registering to get TD PSE
2. Already have TD PSE but not reporting changes to registration information
3. Did not provide registration information correctly

Sanctions for PSE users who do not register (Permenkominfo 5/2020):

1. Termination of access to electronic systems (access blocking)

Sanctions for Private Scope PSE users who already have TD PSE but do not report changes to registration information (Permenkominfo 5/2020):

2. Written warning
3. Temporary suspension of Private Scope PSE if you do not heed the written warning
4. Termination of access to the electronic system (access blocking) if the Private Scope PSE does not confirm within seven days of the temporary suspension

Still confused about the provisions of the Private Scope PSE and its adjustment to the new version of OSS? Consult us further, Prolegal!

Author & Editor: Bidari Aufa Sinarizqi

Translator: Desak Nyoman Ratna Sari