On October 2025, the Ministry of Communication and Digital Affairs (Komdigi) allegedly issued official warnings to 25 major global and domestic digital providers, including several big names such as Cloudflare, OpenAI’s ChatGPT, Dropbox, and Duolingo, after the failure to comply with proper registration for Penyelenggara Sistem Elektronik (PSE).
The warning signals the government’s intention to strengthen digital governance, user protection, and data sovereignty. However, it has also raised concerns among businesses and consumers who rely on these platforms for daily activities, professional workflows, and digital infrastructure.
This article provides an analytical overview of the situation, clarifies what PSE registration entails, and highlights why compliance is essential for digital platforms and tech companies seeking to operate lawfully in Indonesia.
The Issue: 25 Digital Platforms at Risk of Access Restrictions
Komdigi’s latest announcement highlights that 25 digital platforms have yet to complete their mandatory PSE registration, despite receiving formal notifications. The list includes some of the world’s most widely used digital services:
- Cloudflare, Inc.
- OpenAI, L.L.C. (ChatGPT)
- Dropbox, Inc.
- Duolingo, Inc.
- Marriott International
- Accor S.A.
- InterContinental Hotels Group (IHG)
- Shutterstock, Inc. & Getty Images
- Wikimedia Foundation (Wikipedia)
- PandaDoc, AirSlate (SignNow), Zoho Sign, and several Indonesian digital platforms
(roomme.id, HIJUP, doktersehat.com, etc.)
Source: CNN
Alexander Sabar, Director-General of Digital Space Supervision at Komdigi, emphasised that administrative sanctions will apply if platforms fail to register after the warning period. These sanctions may escalate to access termination or full service blocking within Indonesia.
With digital infrastructure, remote working tools, AI assistants, and online education platforms now embedded in the daily routines of millions of users, the potential disruptions are significant.
Why Is PSE Registration Mandatory? Understanding the Legal Framework
PSE, or Penyelenggara Sistem Elektronik, refers to any organisation, domestic or foreign that operates electronic systems, platforms, or digital services accessible by users in Indonesia. The requirement applies broadly, covering:
- E-commerce
- SaaS platforms
- Cloud and cybersecurity providers
- Digital content, social media, and communication tools
- AI applications and digital productivity software
- Hospitality platforms
- Healthtech and edtech providers
The obligation to register is rooted in Ministerial Regulation No. 5 of 2020 (PM Kominfo 5/2020), particularly under Articles 2 and 4. The regulation mandates all private PSE operators, local or overseas,to register their electronic systems before operating in Indonesia.
This requirement is not merely administrative. It supports several strategic objectives:
1. Strengthening data protection and user safety
Registration enables the government to monitor digital service providers and ensure they comply with security standards, incident reporting obligations, and personal data protection laws.
2. Ensuring accountability of global digital platforms
With many platforms operating cross-border, registration helps Indonesia enforce consumer protection rules and digital conduct standards.
3. Enhancing digital sovereignty
As digital ecosystems expand, Indonesia aims to ensure foreign platforms respect national laws, safeguarding national interests in cyberspace.
4. Supporting transparent digital governance
PSE registration acts as a foundational requirement to align operators with Indonesia’s regulatory and supervisory structures.
What Happens if Platforms Do Not Comply?
Komdigi has emphasised that failure to register will trigger administrative sanctions. These can include:
- Written warnings
- Temporary service suspension
- Fines
- Complete blocking of access within Indonesia
The most severe sanction has previously been applied in the form of permanent access termination.
In 2022, several major gaming and payment platforms were temporarily blocked after they failed to comply.
Given the inclusion of major infrastructure providers such as Cloudflare and key productivity tools such as Dropbox or SignNow, a potential ban in 2025 could create operational disruptions for businesses, expatriates, students, and professionals.
Such risks highlight the urgency for global digital platforms to register through the Online Single Submission (OSS) system, the government’s integrated licensing platform.
Understanding PSE Registration: What Digital Companies Need to Know
For foreign digital service providers, PSE registration in Indonesia involves:
1. Declaring system operations
Platforms must register their electronic systems, services provided, and data handling practices.
2. Appointing a local contact person or representative
This ensures legal accountability and clear communication with regulatory authorities.
3. Demonstrating compliance with Indonesian regulations
This includes readiness to comply with:
- Data localisation obligations (where applicable)
- Incident reporting guidelines
- User data protection laws
- Content moderation and safe-network principles
4. Submitting documents and statements through OSS
The process is straightforward but requires accurate documentation and understanding of legal obligations.
Failure to comply does not only trigger sanctions. It may also lead to:
- Restricted market access
- Loss of business opportunities
- Reputational risk
- Delays in partnership approval with Indonesian entities
Why PSE Compliance Matters for Tech and Digital Companies
1. Indonesia is one of the world’s fastest-growing digital markets
With over 270 million people, rising internet penetration, and the largest digital economy in ASEAN, Indonesia represents a strategic market for global tech companies.
Non-compliance jeopardises access to this expanding ecosystem.
2. Regulatory compliance is central to trust and operational continuity
Responsible data handling, privacy protection, and transparent systems are increasingly demanded by governments and users alike.
3. Foreign tech companies operating without PSE risk severe interruptions
Service blocking—temporary or permanent—could impact:
- Customer access
- B2B operations
- Cloud services
- Cybersecurity layers
- AI utilisation in corporate workflows
4. Compliance supports long-term business stability
PSE registration helps foreign platforms operate safely within Indonesia’s regulatory boundaries, reducing legal uncertainty and improving confidence among local partners and regulators.
The Bigger Picture: Strengthening Indonesia’s Digital Governance
The government’s current enforcement drive reflects broader developments:
- Implementation of the Personal Data Protection Law (PDP Law)
- Expansion of digital infrastructure governance
- Increased oversight on cross-border data transfers
- Strengthening cybersecurity monitoring
- Ensuring digital platforms operate transparently and responsibly
As Indonesia modernises its digital regulatory framework, PSE registration is becoming a baseline requirement not only for large, established tech firms but also for emerging startups and SaaS providers entering the Indonesian market.
How LMI Consultancy Supports Businesses with PSE Registration
At LMI Consultancy, we assist foreign and domestic digital companies in navigating Indonesia’s increasingly complex regulatory environment.
Our services include:
- Advisory on PSE eligibility for digital and tech firms
- End-to-end assistance with PSE registration through OSS
- Support for establishing a local representative or entity
- Compliance mapping for PDP Law, data handling, and digital governance
- Ongoing regulatory monitoring and compliance management
Understanding the principles behind PSE regulation, and taking timely action, will be critical for maintaining business continuity in one of Asia’s most dynamic digital markets.
For tech companies requiring guidance, LMI Consultancy stands ready to provide strategic, compliant, and practical solutions, ensuring seamless entry and sustained operations in Indonesia’s digital ecosystem.
With expertise spanning immigration, legal, business setup, and tax advisory, LMI Consultancy provides integrated solutions to ensure your digital operations in Indonesia remain compliant, secure, and future-ready.
