On March 6, 2024, the Ministry of Communication and Information (Kominfo) announced that it had issued warning letters to six online travel agents, namely Booking.com, Agoda.com, Airbnb.com, Klook.com, Trivago.co.id, and Expedia.co.id on March 5, 2024, for violations of the Regulation of Kominfo Number 5 of 2020 as amended by Regulation of Kominfo Number 10 of 2021 concerning Amendments to Regulation of Kominfo Number 5 of 2020 concerning Private Electronic System Operators (PM Kominfo 5/2020).

Background to the decision 

In particular, Kominfo stated that six categories of Private Scope Electronic System Operators (PSEs) are required to register under PM Kominfo 5/2020 that have portals, sites, or applications that:

• provide, manage, and/or operate offers and/or trade in goods and/or services;
• provide, manage, and/or operate financial transaction services;
• send paid digital material or content via data networks either by downloading via a portal or site, sending it by email, or other applications to electronic system user devices;
• provide, manage, and/or operate communication services including but not limited to short messages, voice calls, video calls, email, and online conversations in the form of digital platforms, networking services, and social media;
• are search engine services, services providing electronic information in the form of writing, sound, images, animation, music, videos, films, and games, or a combination of some and/or all of them; and/or
• processing personal data for operational activities serving the public related to electronic transaction activities.

Kominfo further clarified that the registration obligation applies to both domestic and foreign PSEs. Foreign PSEs are regulated if they are established according to the laws of another country or whose permanent domicile is in another country but:

• they provide services within the territory of Indonesia;
• do business in Indonesia; and/or
• the electronic system is used and/or offered in the territory of Indonesia.

Findings of Kominfo

Kominfo found that the abovementioned six entities did not register under PM Kominfo 5/2020. Kominfo further highlighted that the registration policy is a data collection mechanism for PSEs and the covered PSEs are required to submit information on the identity of the organizer, the name of the electronic system, the official URL of the website, the type of personal data processed, and the location of data management or processing. 

Outcomes

In light of the above, Kominfo issued warning letters to the six entities and stated that they have five working days from the issuance of the warning letter to register in accordance with statutory regulations. Kominfo further stated that in the event that the entities do not respond to the warning letter, Kominfo may impose administrative sanctions in the form of termination of access to the electronic system.

You can read the press release, only available in Indonesian, here.