Avoid Penalties: 7 Things Every Business Must Know About PSE Registration in Indonesia (2025 Update)

Introduction: The Digital Business Compliance You Can’t Ignore 

In today’s digital-driven economy, operating an online business in Indonesia means navigating a new and non-negotiable requirement: PSE Registration. Short for Penyelenggara Sistem Elektronik, this registration is mandated by Indonesia’s Ministry of Communication and Informatics (Kominfo) to ensure all electronic system providers—whether based in Indonesia or abroad—are legally recognized and compliant with national regulations.

If your business runs a website, app, e-commerce platform, digital payment system, or any online service that collects user data or conducts transactions, then PSE Registration is not optional—it’s mandatory. This applies to both local companies and foreign businesses serving users in Indonesia, regardless of whether they have a physical presence in the country.

As we move into 2025, Kominfo is increasing its oversight and has already begun blocking non-compliant platforms. Major global companies like TikTok, Netflix, and Google have already registered, setting a precedent for others to follow.

Failing to complete your PSE Registration can result in your platform being blacklisted, shut down, or penalized. This article walks you through what PSE is, who needs to register, how to do it correctly, and the potential consequences of ignoring this crucial step in digital compliance.

Don’t let your digital presence in Indonesia vanish overnight—understand the rules and stay compliant with PSE Registration.

What is PSE Registration?

PSE Registration, or Pendaftaran Penyelenggara Sistem Elektronik, is a legal requirement in Indonesia for all entities—local or foreign—that operate digital platforms accessible to Indonesian users. “PSE” stands for Penyelenggara Sistem Elektronik, which translates to Electronic System Provider.

This obligation was established under Government Regulation No. 71 of 2019 on Electronic Systems and Transactions and further detailed in Kominfo Regulation No. 5 of 2020. These regulations were designed to govern the rapidly growing digital space in Indonesia and to ensure transparency, accountability, and national data security.

PSE Registration applies to two categories:

• Private PSEs: Commercial websites, apps, e-commerce platforms, SaaS companies, digital payment services, fintech startups, cloud providers, and any entity that collects or manages user data.
• Public PSEs: Government-related platforms and systems.

Any online system that enables electronic communication, commerce, data exchange, or financial transactions must register with Kominfo before offering services to the Indonesian public.

The goal of PSE Registration is to ensure that digital service providers are accountable and can be audited or sanctioned if they breach Indonesian laws, especially regarding data privacy and digital consumer protection.

In short, PSE Registration isn’t just a formality—it’s a compliance checkpoint that affects your legal standing, platform visibility, and long-term business sustainability in Indonesia’s digital economy.

Who Must Register Under PSE? 

PSE Registration is mandatory for any organization—local or foreign—that operates an electronic system accessible in Indonesia. This includes websites, applications, platforms, or services that collect, manage, or utilize user data from Indonesian users.

Local companies must complete PSE Registration if they:

• Operate a website or app that collects personal data, allows user logins, or processes online payments.
• Provide any digital service, including e-commerce, learning platforms, online consulting, or SaaS (Software as a Service).
• Have a system used for internal operations but accessible over the internet (e.g., HR or inventory management tools).
  
  

Foreign entities are not exempt. If your platform is accessible in Indonesia—even if you don’t have a legal entity in the country—you’re still required to comply. This includes:

• Social media and communication apps like TikTok, WhatsApp, Zoom
• Streaming platforms like Spotify and Netflix
• Marketplaces and SaaS companies offering services to Indonesian businesses or individuals

Failure to complete PSE Registration can result in access restrictions or full blocking of your platform by Kominfo, the Ministry of Communications and Information.

Industries especially impacted by this regulation include e-commerce, fintech, EdTech, telemedicine, online marketplaces, crypto exchanges, and digital entertainment platforms.

If your business processes any kind of digital interaction with Indonesian users, PSE Registration isn’t optional—it’s legally required.

Why PSE Registration is Mandatory—Not Optional

PSE Registration is not a formality—it’s a legal obligation under Indonesia’s evolving digital governance framework. Governed by Government Regulation No. 71/2019 and Kominfo Regulation No. 5/2020, it ensures that all electronic system providers (PSEs) operating in Indonesia meet transparency, data protection, and cybersecurity standards.

Failure to complete PSE Registration can result in serious consequences, including:

• Platform blocking by Kominfo, making your service inaccessible to Indonesian users.
• Legal liability if your platform suffers a data breach or misuses user data without being officially registered.
• Delays in partnerships, licensing, or compliance with other government agencies.

Even startups, freelancers, and small businesses that run websites or apps must register if they process personal data, payments, or provide any interactive online service.

In 2025 and beyond, Kominfo is increasing enforcement and monitoring, especially of foreign digital platforms and fintech providers. Ignoring PSE Registration is no longer an option—it can disrupt your operations and reputation.

Whether you're a global tech brand or a small Bali-based booking platform, PSE Registration is a vital compliance step in Indonesia's digital landscape.

Step-by-Step Guide: How to Complete PSE Registration

Completing PSE Registration in Indonesia might sound intimidating, but the process is relatively straightforward if you prepare the required documents in advance. Below is a step-by-step breakdown to help your business stay compliant.

✅ Step 1: Access the Official PSE Portal

Visit the Ministry of Communication and Informatics (Kominfo) website:
🔗 https://pse.kominfo.go.id/

This is where you’ll create an account and submit your PSE Registration application.

✅ Step 2: Prepare the Required Documents

You’ll need the following to register:

• NIB (Nomor Induk Berusaha) – your Business Identification Number
• NPWP – company tax number
• Business license – applicable to your industry
• ID of PIC (Person in Charge) – KTP or passport if foreign
• Privacy policy or data processing agreement – must align with Kominfo’s regulations

✅ Step 3: Fill Out and Submit the Form

Once logged in, complete the online form with accurate company information. Make sure your company name and digital services match what’s listed under your OSS/NIB profile.

After submission, Kominfo will review and verify your documents.

✅ Step 4: Wait for Verification

The PSE Registration process typically takes 7–14 business days. You’ll receive a registration number or public listing once approved.

Keep your dashboard login for future updates or changes.

Pro Tip:

If your platform evolves (e.g., adds e-commerce, new data collection features), you may need to update your PSE Registration to stay compliant.

Completing your PSE Registration early avoids legal risks, protects your platform, and builds trust with users and partners in Indonesia.

Consequences of Skipping PSE Registration

Failing to complete your PSE Registration in Indonesia can have serious consequences—both operationally and legally. Kominfo (the Ministry of Communication and Informatics) has increased enforcement, and unregistered platforms are being targeted.

One of the most immediate risks is being blocked entirely in Indonesia. Your website, mobile app, or digital platform can be taken offline without prior notice if your business is flagged as non-compliant. This applies not only to local businesses but also to foreign platforms operating in Indonesia.

Kominfo’s legal framework under PP No. 71/2019 and Ministerial Regulation No. 5/2020 outlines a series of escalating sanctions:

• First warning
• Temporary suspension
• Permanent blocking of your domain or app

Beyond regulatory actions, lack of PSE Registration also affects banking and payment integrations. Many payment gateway providers now require proof of registration before onboarding clients.

For startups and foreign companies, skipping PSE Registration can lead to loss of user trust. Indonesian users are increasingly aware of data privacy and digital legality. An unregistered platform signals a lack of legitimacy and accountability.

In short, avoiding PSE Registration is not just a compliance risk—it’s a business risk. Being delisted, blocked, or unable to scale legally in Indonesia can cost your company far more than the time and effort it takes to register.

PSE for Foreign Entities: Key Differences

PSE Registration isn’t just for Indonesian businesses. Foreign digital platforms must also register if they offer services to Indonesian users—even if they don’t have a physical office in the country.

Under Kominfo Regulation No. 5/2020, any Electronic System Provider (PSE) that collects data, enables digital transactions, or provides communication tools for Indonesian users must comply. This includes websites, apps, SaaS platforms, and streaming services.

To fulfill PSE Registration as a foreign entity, companies are required to appoint a local representative. This can be a PT PMA (foreign-owned company) or a representative office registered with Indonesian authorities. The local rep acts as a liaison and ensures legal accountability under Indonesian law.

Several high-profile companies—Netflix, TikTok, Meta, Zoom—have already completed their PSE Registration to avoid being blocked in Indonesia. Their compliance sets a clear precedent: no business is too big to ignore the rules.

Foreign businesses that fail to register risk having their platforms blocked by Kominfo, cutting off access to one of Southeast Asia’s largest digital markets.

PSE and Data Protection: How It Connects to PDP Law

PSE Registration is more than just a formality—it ties directly into Indonesia’s Personal Data Protection Law (UU PDP), enacted in 2022. Businesses registering as a Penyelenggara Sistem Elektronik (PSE) must show that their systems respect user privacy, data security, and transparency.

As part of the PSE Registration process, platforms are required to publish a clear privacy policy that explains how personal data is collected, processed, stored, and shared. This includes details like data retention, third-party access, user rights, and data breach protocols. Non-compliance with these transparency requirements can lead to rejection of your PSE application or future revocation.

Once registered, your system may still be audited by Kominfo or other authorities. If a PSE-registered business is found to be in violation of the PDP Law, the penalties may include administrative fines, temporary suspension, or even permanent takedown of your platform from Indonesia’s digital ecosystem.

For both local and foreign digital service providers, this means data protection compliance is not optional. Ensuring alignment between your platform, your PSE Registration, and the PDP Law is key to maintaining operations legally.

In short: PSE Registration isn’t just a tech formality—it’s your legal entry point into one of Southeast Asia’s fastest-growing digital markets.

Common Mistakes in PSE Registration

Many businesses rush through PSE Registration without fully understanding the requirements—leading to delays, rejections, or even penalties. One of the most common mistakes is registering under the wrong entity. For instance, some startups use a personal ID or non-operational business entity instead of a registered PT or PT PMA. Kominfo requires that the registered entity match your legal business credentials, including a valid NIB (Business Identification Number).

Another mistake is failing to update your PSE Registration when there are major changes in your digital system—such as switching server locations, introducing new data collection features, or changing your terms of service. These changes may require re-verification or re-registration under Kominfo’s rules.

Also, choosing the wrong KBLI (business classification code) during the submission process can trigger problems. Each online service must match its KBLI category to the type of digital system it operates—e-commerce, fintech, SaaS, etc.

Avoiding these errors is essential for smooth and compliant operation. Make sure your PSE Registration is accurate, complete, and regularly updated to prevent future takedowns or sanctions.

Conclusion: Stay Visible and Compliant in 2025

In today’s digital economy, PSE Registration is no longer optional—it’s a critical part of operating legally and sustainably in Indonesia. Whether you're a local startup or a global platform serving Indonesian users, being listed on Kominfo’s database signals trust, credibility, and transparency.

As Kominfo intensifies enforcement in 2025, the risks of skipping PSE Registration—from platform shutdowns to legal sanctions—are simply too high. This isn’t just about ticking a bureaucratic box; it’s about protecting your business continuity, your users, and your brand reputation.

For foreign businesses, PSE Registration offers a clear path to market entry while ensuring compliance with data privacy and cybersecurity standards. For local entrepreneurs, it strengthens your legal foundation and helps you access services like payment gateways, digital advertising, and investor confidence.

Don’t delay—consult your legal or compliance advisor today or begin your PSE Registration directly via https://pse.kominfo.go.id to stay visible, compliant, and competitive in 2025 and beyond.