In the midst of the rise of digital document needs, the role of electronic signatures or e-signatures is becoming increasingly important and needed. Many business actors, both in the form of business entities (companies) and individuals, use e-signatures to process the validity of a certain agreement or agreement document. So, what is meant by e-signature? Is the digital signature legally valid? Check out the further explanation here.
What is E-Signature?
Quoting kominfo.go.id, an electronic signature or e-signature is a form of digital signature consisting of electronic information attached, associated or related to other electronic information, which is used as a verification and authentication tool. E-signatures are used as proof of the authenticity of the document sender’s identity. This electronic signature is also used to ensure that the contents of the document sent have not been changed. The recipient of a message or document affixed with an e-signature can check whether the message or document really came from the real sender, and whether the message or document has been changed after being signed, either intentionally or unintentionally. Basically, the existence of an e-signature is the same as a signature written using a pen, but digitized, which can be used to confirm the content in a document or the term of a particular document.
What are the Benefits of E-Signature for Business or Company?
In business operations or companies, the existence of e-signatures makes work more efficient, in terms of time, as well as costs, and minimizes the use of physical documents. With e-signature, companies can sign documents faster, no need to print documents, sign them physically, and send documents by post or other delivery services. The following is a complete explanation of the benefits of e-signature for businesses or companies:
Save Time and Cost
In the process of giving a digital signature, of course, this does not require the presence of the owner of the signature face-to-face. Everything can be done anywhere, so that transactions between companies can run more efficiently.
Easy to Track
Wet signatures have the potential to be forged by irresponsible parties. On the other hand, e-signatures can be digitally recorded and stored by the owner. This makes it difficult to be forged and manipulated in any form. The existence of e-signatures can also help minimize the risk of fake documents and facilitate business processes that benefit companies because they can save time and costs.
Security and Confidentiality
E-signatures can also improve the security and confidentiality of corporate legal documents. Where the digital signature process usually uses strong encryption technology to protect the integrity and confidentiality of the document.
Identity Assured
The advantage of using e-signature is that the security of personal identity is guaranteed. In this case, a privacy policy is provided to ensure that the user’s personal data is protected. The security of personal identity information is also more guaranteed through the use of asymmetric cryptography technology that is uniquely created for each individual, one of which is this e-signature.
Legal Basis of E-Signature
Well, now you know what an e-signature is and its benefits for businesses or companies. Now you might be wondering, how is it valid? Is e-signature legally valid? The use of e-signatures in Indonesia has been regulated in Law No. 1 of 2016 concerning Amendments to Law o 11 of 2008 concerning Electronic Information and Transactions (ITE Law).
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In addition, there is also a derivative, namely Government Regulation No 71/2019 on the Implementation of Electronic Systems and Transactions (PP PSTE). So, the state has viewed e-signature as a sign of approval of a transaction and validation of a legal document.
E-Signature Types and Qualifications
As mentioned, the existence of e-signatures is already legal and legally recognized in Indonesia. However, it should be noted that not all e-signatures have legal force. There are terms and conditions that apply. Based on Article 60 paragraph (2) of PP PTSE, there are two types of e-signatures, namely:
- Certified e-signature; and
- E-signature is not certified.
Article 60 paragraph (3) of PP PTSE further explains that a certified e-signature must have the following qualifications:
- Meet the validity of the legal force and legal consequences of electronic signatures;
- Use electronic certificates made by Indonesian Electronic Certification Provider services; and
- Created using a certified electronic signature creation device.
There are several Indonesian Electronic Certification Providers, including PrivyID, Peruri, SolusiNET, and so on. Meanwhile, uncertified e-signatures are made without using the services of an Indonesian Electronic Certification Provider.
Requirements for E-Signature to be Legally Enforceable
In order for an e-signature to have legal force, it must fulfill various requirements determined by laws and regulations. The requirements for an e-signature to have legal force and legal consequences according to Article 11 of the ITE Law are as follows:
- Electronic signature creation data is linked only to the signer;
- Electronic signature creation data during the electronic signing process is only in the power of the signer;
- Any changes to the electronic signature that occur after the time of signing can be recognized;
- Any changes to the electronic information associated with the electronic signature after the time of signing can be known;
- There is a specific means used to identify who the signatory is; and
- There are certain ways to indicate that the signatory has given consent to the electronic information concerned.
In addition, only electronic signatures created by an Indonesian Electronic Certification Provider can meet the validity of legal force and legal consequences.
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By fulfilling these various requirements, the electronically signed document has strong legal force.
KH Contact
In today’s digital age, the role of e-signatures cannot be ignored. Its legal validity, professional efficiency, and document security make it a top choice for many business people and companies. Well, for KH Pals who also want to ensure the legality of documents and get consultation related to e-signature, don’t hesitate to contact Kontrak Hukum. We provide Digital Legal Assistant (DiLA) services that are ready to provide guidance and assistance in understanding the requirements and process of making e-signatures in accordance with applicable regulations. With DiLA, the security and sustainability of your business in facing the digital era will be more assured. For more information, please visit KH Services – DiLA page. If you still have questions about your business needs or other legalities, you can also consult for free at Tanya KH or send a direct message (DM) to Instagram @Kontrakhukum.
