As an entrepreneur, especially a startup business, have you ever heard the term PSE or Electronic System Operator? This term is starting to be widely known by the wider community because of a new policy from the Ministry of Communication and Information Technology (Kemkominfo). The policy makes several applications such as Instagram, Twitter, PayPal, Steam, and others must register with PSE so as not to get a blocking sanction. Yes, the government through Kemkominfo advises all digital industry players to register their companies. This has been regulated in Government Regulation No 71/2019 on the Implementation of Electronic Systems and Transactions which has replaced Government Regulation No 82/2012, as well as Minister of Communication and Information Regulation No 36/2014 on Procedures for PSE Registration. So, what exactly is a PSE and what are the procedures for registration? Why do industrial companies have to do it? Check out the full explanation in the following article!
What is PSE?
Before discussing further about PSE or Electronic System Operator, KH Friend must understand well what exactly PSE is. For information, an electronic system is a series of electronic devices and procedures that function to prepare, collect, process, analyze, store, display, transmit, or disseminate electronic information. So it can be seen that according to Article 1 paragraph (4) of PP 71/2012, PSE is every person who is a state organizer, business entity, and the community who provides, manages, and/or operates an Electronic System individually or jointly to Electronic System Users for their own needs and/or the needs of other parties. In other words, PSE is the use of Electronic Systems by state administrators, persons, business entities, and/or the community which can be carried out for public or non-public services.
What is the Purpose of the PSE Regulation?
The background of the issuance of Government Regulation No. 71/2019 is none other than the development of new business entities, agencies, and companies related to the internet. The main objectives that the government wants to achieve with this PSE Kominfo regulation include the following:
Realizing a Coordinated System
This regulation can help realize a coordinated system, and the benefits will be very positive for Indonesia. Imagine if Indonesia does not have a registration system, all PSEs operate without any supervision, coordination, and recording. In effect, if there is a violation of the law in Indonesian jurisdiction, the government will find it difficult to coordinate with PSEs.
Preserving Digital Space
Furthermore, this regulation requires all digital organizers to be able to comply with all applicable regulations, in order to maintain digital space in Indonesia. Although the government does not mention in detail and explicitly about the context of the digital space.
Protecting the Community
Kominfo also seeks to protect the Indonesian people in accessing digital space. Private scope PSE registration system through OSS-RBA system. So that it can make it easier for Kominfo to ensure that PSE has complied with the rules that apply in Indonesia.
Justice, Including Tax Collectors
This regulation will also realize equality in the context of an equal playing field between domestic and foreign PSEs. This is because SE targets all Indonesians to be required to register their applications and services in the PSE.
Who is required to register for PSE?
According to PP 71/2019, PSE is a system of rules that can be divided into two categories, namely Private Scope PSE and Public Scope PSE, the following explanation.
PSE Public Scope
The first category of PSE is Public Scope PSE, which consists of state agencies, or institutions appointed by state agencies. Examples of electronic systems from Public Scope PSEs are websites with the .go.id domain, such as kominfo.go.id, and various other websites.
PSE Private Scope
As explained earlier, PSEs are people, business entities, and communities. Examples of electronic systems from Private Scope PSE are websites with domains other than .go.id, for example rumahweb.com, and various other sites.
Categories of PSE Applicants
Not all company owners are required to register PSE, Based on Article 2 paragraph 2 of PP 71/2019, every person or business entity has a portal, or online application via the internet which is used for:
- Providing, managing, and/or trading goods and/or services (marketplace/e-commerce)
- Provide, manage and/or operate financial transaction services (e-wallet/digital bank/payment gateway)
- Delivery of paid digital material or content over a data network by downloading through a portal or website. Delivery via electronic mail or other applications to the user’s device (Netflix/Spotify)
- Providing, managing, and/or operating communication services including but not limited to short messages, voice calls, video calls, electronic mail, and online conversations in the form of digital platforms, networking services, and social media (Facebook/WhatsApp/Twitter)
- Search engine services, electronic information provision services in the form of writing, sound, images, animation, music, video, movies, and games or a combination of some and/or all of them (google/youtube/yahoo)
- Processing of personal data for operational activities to serve the public related to electronic transaction activities (Saas)
So with the latest regulation, PP 71/2019, almost all businesses that conduct their business via the internet are obliged to register themselves as Electronic System Operators.
PSE Registration Application Requirements
To register for PSE, KH Friend must prepare several requirements that must be met. What are they?
Registration Documents
Completeness of registration documents such as:
- NIB and Business License,
- Company domicile statement,
- Identity of the person in charge,
- NPWP of the company/individual,
- Profile of electronic system organizers,
- Technical overview and business procedures of electronic systems,
- Domain names for electronic systems in the form of websites, and
- Security certificate.
Benefits of Registering for PSE
As mentioned earlier, the existence of PSE is useful for ensuring data collection and maintaining the security of digital space. Not only that, the benefits of PSE can also be intended for companies and communities. Here are some of them:
Benefits of PSE for companies
- Listed in the PSE Registration Certificate, so clearly identified
- More public trust
- Building ecosystem mapping of Electronic System and Transaction Implementation
- Proof of being officially registered with Kominfo
PSE Benefits for the Community
- Can find out information on PSEs that are late registering as PSEs
- Increase the level of trust in a PSE
- People are becoming smarter and more cautious about making transactions
KH Contact
Those are some important things that KH pals need to know about PSE. By registering a company, KH pals have participated in improving the progress of technology and business in Indonesia. For KH pals who are still confused about PSE and the procedures you have to go through, you can contact Kontrak Hukum!
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Together with our professional experts, we can assist you to consult on registration procedures, including fulfilling the legal documents required to create a PSE such as NIB, NPWP. For more information, please visit the KH Services – Starting a Business page where you can find a variety of solutions regarding business needs and legal issues If you have other questions, please consult with us at Ask KH or via direct message (DM) to Instagram @kontrakhukum.
