Understanding PSE Licenses for Online Business License in Indonesia

Corporate Secretary Service Indonesia – In Indonesia, the PSE (Penyelenggara Sistem Elektronik) License as business license is an essential certification for online businesses. It ensures compliance with the country’s strict security and data protection standards. It is essential for e-commerce platforms, mobile apps, and websites that handle electronic transactions or store customer information. Obtaining a PSE License demonstrates a commitment to protecting user data, increases consumer confidence, and supports smooth online operations.

This article provides a comprehensive overview of the PSE License, including its importance, who needs it, the scope of electronic systems covered, and the steps required to obtain it. It also provides insights into the legal framework and updates in compliance.

What is a PSE License?

A PSE License is essential for all online businesses in Indonesia. It certifies that a company’s electronic systems meet the security and data protection standards set by the Indonesian Ministry of Information and Communication. This certification helps online businesses comply with local regulations and assures users that their data is handled safely.

Why is a PSE License Important?

A PSE License is essential for businesses as it demonstrates a commitment to data security and privacy. If you do not obtain a PSE License as business license, the Minister may block access to your electronic systems, which means customers cannot use and access them.

Who Needs a PSE License in Indonesia?

A PSE License is required for all online businesses that offer services, process online payments or store information. This includes:

1. E-commerce or marketplace platforms
2. Mobile applications
3. Websites that handle electronic transactions or collect personal data
4. Platforms that collect information or process payments
5. Search engines (written, sound, image, music, video, movie, game)
6. Paid digital content
7. Social media, network services, communication services (chat, video call, email, voice call, or online conversation in the form of digital platforms)

Read Also: Definition and Import License Requirements that You Need to Know

Should you Establish a Company in Indonesia to Run an Online Business There?

The answer is optional. The Minister of Communications and Informatics allows electronic system operators established under the laws of other countries or with permanent domicile in other countries, but:

1. Provides services in the territory of Indonesia
2. Conduct business activities in Indonesia; and/or
3. The electronic system is used and/or offered in the territory of Indonesia

The above subjects must register and obtain a Circulation Permit (Izin Edar) to operate in Indonesia.

In conclusion, obtaining a PSE License as business license is essential for any online business operating in Indonesia. It ensures compliance with local data protection standards, increases consumer confidence, and supports smooth online transactions. Understanding the requirements and steps to obtain this license is critical to successful e-commerce operations in the country.

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