Regulation to Accelerate the Digitization of Government Services Issued

On December 18, 2023, President Joko Widodo issued Presidential Regulation No. 82 of 2023 on Acceleration of Digital Transformation and Integration of National Digital Services (“PR 82/2023”). PR 82/2023 was issued to accelerate the digital transformation to realize quality and trusted public services, high-performance bureaucracy and public services, to strengthen the corruption prevention, and to strengthen the cyber and information security.

The key provisions under PR 82/2023 are as follows:

  • Definitions

PR 82/2023 defines certain terms with regard to the acceleration of digital transformation and national digital services, among others, the Electronic-based Government System (in Indonesian, Sistem Pemerintahan Berbasis Elektronik or “SPBE”) which is the administration of the government that utilizes information technology and communications to provide services to SPBE Users (i.e., the central agencies, the regional governments, State civil servants, individuals, communities, business actors and other parties using the SPBE Services).

  • Priority SBPE Application

In order to achieve the integration of national digital services, the Government will accelerate of the digital transformation through implementing the Priority SBPE Application (in Indonesian, Aplikasi SPBE Prioritas) by prioritizing integration and interoperability. PR 82/2023 stipulates that the Priority SBPE Application may be in the form of:

  1. The new SPBE Application that will be operational or will be developed, to be integrated and launched in an integrated manner for the first time at the latest in the third quarter of 2024; or
  2. The SPBE Application that has been operating or will be developed, to be integrated and launched in an integrated manner as an updated version at the latest in the second quarter of 2024,

which has a minimum of 200,000 (two hundred thousand) SPBE Users or target SPBE Users.

  • Functions of Priority SBPE Application

PR 82/2023 sets out the functions of the Priority SBPE Application, which are implemented to support:

  1. Integrated education services;
  2. Integrated health services;
  3. Integrated social assistance services;
  4. Citizenship administration services integrated with digital citizenship identity services;
  5. State financial transaction services as an integrated payment services with all financial services providers;
  6. Government administration services in the field of state apparatus integrated with basic employment services;
  7. Public service portal services, national single sign on services, integrated digital identity services, and integrated SPBE Infrastructure services including national data centers, intra-government networks, government service liaison system, and cloud computing;
  8. Indonesia Single Data (in Indonesian, Satu Data Indonesia) services; and
  9. Integrated police services including issuance of driver license and crowd permits.
  • Parties Responsible for the Priority SPBE Application

Under PR 82/2023, the Government assigns the Mint Company of the Republic of Indonesia (in Indonesian, Perusahaan Umum Percetakan Uang Republik Indonesia or “Perum Peruri”) to administer the Priority SPBE Application. In carrying out such assignment, Perum Peruri shall (i) identify the issues relating to the administration of the Priority SPBE Application, (ii) research the needs of the SPBE Users, and (iii) design effective solutions. PR 82/2023 also allows Perum Peruri to (i) cooperate with state-owned enterprises and its subsidiaries, and other enterprises in accordance with business rules and good corporate governance and (ii) utilize services and/or qualified human resources in the technology sector and human resources from other sectors as support, in accordance with the price reference as determined by the Ministry of Communications and Informatics, in which such price reference shall be regulated by a decree issued by the Minister of Communications and Informatics at the latest 30 (thirty) days as of the date of PR 82/2023.

PR 82/2023 also sets out the relevant Ministers/Head of Institutions which shall be responsible for each function of the Priority SBPE Application as mentioned above. For instance, the Minister of Health shall be responsible for the integrated health services, while the Head of State Police shall be responsible for the integrated police services.

In relation to the above, PR 82/2023 stipulates that the implementation of assignment of Perum Peruri shall be set out in an implementation of assignment agreement between the relevant Ministries/Institutions responsible for the Priority SPBE Application and Perum Peruri. Such agreements shall govern, among others, the forms of support of the relevant Ministries/Institutions, the amounts of funds for the implementation of assignment, and the payment mechanisms for the implementation of assignment.

PR 82/2023 was issued as a foundation to improve the Government’s services and accelerate national development. We also understand that the Government is actively putting in efforts to digitalize the functions of the Government and to establish a “GovTech” ecosystem. We are hopeful that this will be achieved in due course. Nevertheless, the implementation of this digital transformation in Indonesia remains to be seen. We will monitor the development and issue further updates as relevant.

 

AKSET

Please contact Johannes C. Sahetapy-Engel (jsahetapyengel@aksetlaw.com) or M. Fatih Satria Kasmaliputra (mkasmaliputra@aksetlaw.com) for further information.

 

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