{"id":35258,"date":"2020-09-30T16:18:00","date_gmt":"2020-09-30T08:18:00","guid":{"rendered":"https:\/\/zegal.com\/?p=35258"},"modified":"2024-12-27T18:07:12","modified_gmt":"2024-12-27T10:07:12","slug":"e-sign-laws-indonesia","status":"publish","type":"post","link":"https:\/\/zegal.com\/en-sg\/blog\/post\/e-sign-laws-indonesia\/","title":{"rendered":"E-sign Laws: Indonesia"},"content":{"rendered":"\r\n

\"\"<\/h4>\r\n

Part 6: Signing in to the digital age<\/b><\/h4>\r\n

A promising foreign business economy, Indonesia is a country with interesting prospects for growing one’s business.\u00a0<\/span><\/p>\r\n

It’s important to note Indonesia\u2019s political, cultural and social practices to properly conduct international business there. Foreign investment and starting a business in <\/span>Indonesia comes with several legal requirements and it is good practise to read up on the processes to arm yourself with knowledge before starting out in a new country.<\/span><\/p>\r\n

Electronic signatures are ideal for international business activities creating an efficient and accessible method for closing business deals, regardless of physical location.<\/span><\/p>\r\n

Indonesia implemented the Electronic Information and Transaction Law in 2008 and adopts a tiered legal scheme.\u00a0\u00a0<\/span><\/p>\r\n

Read on to learn more about the legal compliance for electronic signatures in Indonesia specifically and watch out for more in this series below on Southeast Asia, Hong Kong, China, New Zealand, Australia, UK, Cayman Islands, and BVI.<\/span><\/p>\r\n

Indonesia’s Electronic Signature Requirements<\/h4>\r\n

A written signature is not always required for a valid contract under Indonesian law. It would be prudent to take note that the courts in Indonesia have been more hesitant than other countries in Asia to adopt e-signing technologies. In recent times, however, they have begun to accept electronically signed documents in court, often asking to verify through both seeing the softcopy on a laptop as well as a hardcopy document. Printing of e-signed documents is recommended.\u00a0<\/p>\r\n

The Rules<\/span><\/h4>\r\n

Contracts are generally valid if legally competent parties <\/span>reach an agreement<\/b>, whether they agree verbally, electronically or in a physical paper document, provided that the basic requirements of a contract under the Indonesian Civil Code are fulfilled:<\/span><\/p>\r\n

i.e., (1) consent;\u00a0<\/span><\/p>\r\n

(2) competency;\u00a0<\/span><\/p>\r\n

(3) certainty\u00a0<\/span><\/p>\r\n

and (4) permissible cause (i.e., it does not contravene the prevailing regulations and principles of public order and morality).\u00a0<\/span><\/p>\r\n

The Law No. 11 of 2008 on Electronic Information and Transaction as amended by Law No. 19 of 2016 <\/span>specifically confirms that electronic contracts are valid and acceptable<\/b>.\u00a0<\/span><\/p>\r\n

Government Regulation 82 provides that there are<\/span> 2 types of electronic signature <\/b>namely (i) certified and (ii) uncertified. <\/span>There is no mandatory requirement to have a certified electronic signature<\/b>.<\/span><\/p>\r\n

Applicability of an Electronic Signature\u00a0<\/span><\/h4>\r\n

To prove a valid contract, parties may sometimes have to present evidence in court. Leading digital transaction management solutions can provide <\/span>electronic records<\/b> that are admissible in evidence under Article 44 of Law No. 11 of 2008 on Electronic Information and Transaction, to support the existence, authenticity and valid acceptance of a contract.<\/span><\/p>\r\n

<\/span>Use Cases for E-sign<\/span><\/h3>\r\n

Instances where e-signatures are generally considered appropriate:<\/p>\r\n