E-commerce In Indonesia – Legal And Regulatory Framework

The Indonesian government initially adopted a conservative and relatively traditional approach to regulating internet-based activities. Prior to 2008, there was no legislation or guidelines in Indonesia that regulated the internet and how electronic information was offered and consumed, for both commercial and non-commercial purposes. In the five to seven years before 2008, Indonesia experienced the rapid development of information technology and the number of internet users in the country soared as the internet became the most popular medium to access electronic information.

In response to this growth, the Indonesian government issued an underlying regulation to address potential issues resulting from activities conducted on the internet. On 21 April 2008, through the House of Representatives, the Indonesian government issued Law No. 11 of 2008 on Electronic Information and Transactions (the ITE Law).