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Indonesia: Breaking down the second amendment to the EIT Law – new provisions on electronic certificate providers, prohibited contents and mandatory use of Indonesian law

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In brief

On 2 January 2024, the President of the Republic of Indonesia signed Law No. 1 of 2024 on the Second Amendment to Law No. 11 of 2008 on Electronic Information and Transactions (“EIT Law“) (“Amendment Law“). The Amendment Law was enacted and became effective on the same day. The Amendment Law covers some new provisions that seem to push for localization and domestic protection, such as the requirement for e-certification service providers to be domiciled in Indonesia and the requirement for international electronic contracts to be governed by Indonesian Law. The Amendment Law also elaborates on the prohibited acts under the EIT Law, and contains new provisions on government intervention.

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Daniel Pardede is a partner in the Mergers & Acquisitions Practice Group and a key contact for Technology, Media & Telecommunications at Hadiputranto, Hadinoto & Partners. He has more than 10 years of legal experience and has advised a wide range of domestic and international clients across various industry sectors such real estate, plantation, manufacturing and trading.

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Andi Kadir is a senior partner and head of the Dispute Resolution Practice Group. He has extensively represented multinational corporations and local companies in domestic and international arbitration (including enforcement of arbitration awards in Indonesia), complex litigation proceedings, court-sanctioned debt restructuring proceedings (PKPU), bankruptcy/insolvency litigation and enforcement of collaterals in Indonesia. He is also well experienced in employment litigation (including dismissal of directors and commissioners), corporate crimes, compliance and regulatory issues in the context of investigation, and administrative law disputes with government agencies (including judicial review to annul the government's regulations). Andi is a co-chairman of the arbitration and ADR commission of ICC Indonesia. He is also a court member of ICC International Court of arbitration. He is a registered arbitrator at Badan Arbitrase Nasional Indonesia (BANI).

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Adhika Wiyoso is an Associate Partner in Baker McKenzie, Jakarta office.

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Bernard Sihombing is an Associate Partner in Baker Mckenzie, Jakarta office.

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Bimo Harimahesa is an Associate in Baker McKenzie Jakarta office.

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Bratara Damanik is an Associate in Baker McKenzie Jakarta office.

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