Anticipating PP No. 71/2019 revision towards digital transactions for financial inclusion

September 25, 2025

Following the enactment of the second amendment to the Law on Electronic Information and Transactions (ITE Law) in 2024, the Government—through the Ministry of Communication and Digital Affairs—is preparing a revision of Government Regulation (PP) No. 71 of 2019 on the Implementation of Electronic Systems and Transactions (PSTE). Tenggara Strategics observed that one of the central issues in this revision is the follow-up to Article 17 Paragraph 2a of the amended ITE Law, which explicitly mandates the use of certified electronic signatures (TTE) in high-risk transactions.

However, the plan to impose mandatory certified electronic signatures also presents several challenges. Among them is the potential increase in costs borne by the public and businesses, particularly those who frequently engage in digital transactions in their daily activities. Therefore, Tenggara Strategics conducted a study on how digital transactions in Indonesia should be governed by the regulator to ensure that the security and user-friendly aspects are well-managed, to ensure the growth of financial inclusion without neglecting users’ safety.

The regulators need to create a supportive framework for digital financial inclusion to clearly define what constitutes a "high-risk electronic transaction" through implementing regulations under the ITE Law. At the same time, it is essential to preserve space for innovation within the industry, including fostering collaboration among stakeholders, as demonstrated by the success of the Indonesia Anti-Scam Center (IASC).

With more adaptive regulations that support the growth of the digital economy, the revision of PP No. 71 of 2019 can serve as a momentum to maximize the potential of the digital economy without neglecting public interests. Progressive policies must be designed to address emerging challenges and risks, while maintaining a strong emphasis on security and consumer protection.

To ensure that the policy recommendations derived from the research are clearly understood by the broader public—particularly younger users—Tenggara Strategics organized a public dissemination event, featuring several key opinion leaders who shared insights on how to use digital financial services safely and effectively.

In parallel, Tenggara Strategics carried out policy advocacy efforts through direct engagements with key regulators at the Ministry of Communication and Digital Affairs to ensure the study’s findings and recommendations were properly communicated and considered in the policymaking process.

Tenggara Strategics was accepted by the Director General of Digital Space Supervision Alexander Sabar, the Director of the Strategy and Digital Space Supervision Policy, the Director of the Certification Supervision and Electronic Transaction, and the Director of Digital Space Control of the Ministry of Communication and Digital.