1. Legal and enforcement framework
1. 1. In broad terms, which legislative and regulatory provisions govern AI in your jurisdiction?
Indonesia currently lacks a comprehensive central regulation governing the use of AI across business sectors. The existing legal framework primarily consists of Ministry of Communication and Information (MOCI) Circular Letter (CL) 9/2023, regarding the Ethics of Artificial Intelligence. This circular letter serves as a non-binding guideline for the use of AI by business entities. It offers ethical principles for AI implementation, emphasising:
- inclusivity;
- humanity;
- privacy and personal data security;
- accessibility;
- transparency;
- credibility and accountability;
- personal data protection;
- sustainable environmental development; and
- IP protection.
In addition to MOCI CL 9/2023, the Financial Services Authority (OJK) has issued the Ethical Guideline on the Responsibility and Reliability of AI. This guideline specifically targets companies in the financial technology sector, aiming to:
- ensure responsible AI use; and
- mitigate potential risks arising from AI integration in their operations.
Separately, the Press Council – an independent agency that was established to foster the development of a free, professional and responsible press in Indonesia – released Press Council Regulation (PCR) 1/2025 regarding Guidelines for the Utilisation of Artificial Intelligence in Journalism. However, as the Press Council is not a government agency, this regulation applies solely to Indonesian media companies.
Overall, the current legal landscape for AI in Indonesia consists mainly of guidelines rather than enforceable regulations. A comprehensive legal framework, including possible sanctions, has yet to be established. The Ministry of Communication and Digital Affairs (MOCDA) – formerly MOCI – has indicated that draft regulations concerning AI are currently being developed with input from stakeholders and industry players, with completion targeted for the third quarter of 2025.
1. 2. How is established or 'background' law evolving to cover AI in your jurisdiction?
Under current Indonesian law, and pending the issuance of more specific regulations on AI, AI is governed as an electronic agent under Law 11/2008 on Electronic Information and Transactions (EIT), as last amended by Law 1/2024 on the Second Amendment to Law 11/2008. The EIT Law defines an 'electronic agent' as a component of an electronic system operated by a person and designed to automatically perform actions on certain electronic information.
The implementing regulation of the EIT Law, Government Regulation (GR) 71/2019 on the Implementation of Electronic Systems and Transactions, further stipulates the following general principles to be followed by operators in providing AI services:
- prudential principles;
- security and integration of IT systems;
- security control over electronic transaction activities;
- cost-effectiveness and efficiency; and
- consumer protection in accordance with the applicable laws and regulations.
The EIT Law and GR 71/2019 provide that the legal responsibility arising from the use of AI shall be borne by the AI operator, save for any losses arising from the use of AI caused by the negligence of the user, in which case the liability shall be borne by the user.
The EIT Law and GR 71/2019:
- regulate the general principles for the use of electronic agents; and
- set out the obligations of AI operators in using AI as one type of electronic agent.
They do not provide specific regulations on the use of AI or its various subsets.
1. 3. Is there a general duty in your jurisdiction to take reasonable care (like the tort of negligence in the United Kingdom) when using AI?
Under MOCI CL 9/2023, AI operators must adhere to the following principles when providing AI services:
- inclusivity;
- humanity;
- privacy and personal data security;
- accessibility;
- transparency;
- credibility and accountability;
- personal data protection;
- sustainable environmental development; and
- IP protection.
Reasonable care in using AI falls under the ambit of the sixth principle, credibility and accountability. MOCI CL 9/2023 further explains that this principle requires the implementation of AI to prioritise the system's ability to make decisions based on the information or innovations it produces. Additionally, information generated through AI must be reliable and accountable when disseminated to the public. However, given the nature of MOCI CL 9/2023 as a guideline, the principles it sets out are nonbinding. Non-compliance with these principles does not subject AI operators to sanctions, unless other applicable laws and regulations are violated.
1. 4. For robots and other mobile AI, is the general law (eg, in the United Kingdom, the torts of nuisance and 'escape' and (statutory) strict liability for animals) applicable by analogy in your jurisdiction?
Pursuant to Article 21(2) of the EIT Law, the liability for electronic transactions (ie, legal actions carried out using computers, computer networks and/or other electronic media) conducted by AI acting as an electronic agent rests with the AI operator. This means that in providing AI services, the AI operator bears liability for the actions carried out by the AI.
1. 5. Do any special regimes apply in specific areas?
Currently, the legal framework governing AI consists primarily of guidelines:
- MOCI CL 9/2023 for general business actors; and
- the OJK's Ethical Guideline on the Responsibility and Reliability of AI and PCR 1/2025 for sector-specific business actors in the financial and press sectors, respectively.
Until more specific regulations on AI usage are issued, these guidelines will serve as the applicable regulatory framework for business actors providing AI services.
1. 6. Do any bilateral or multilateral instruments have relevance in the AI context?
Currently, Indonesia has not yet entered into any international agreements or policies concerning AI.
1. 7. Which bodies are responsible for enforcing the applicable laws and regulations? What powers do they have?
Indonesia does not currently have a dedicated regulatory body that specifically oversees AI. The regulator for AI companies depends on the sector in which the company operates. Generally, AI companies providing services in the technology sector fall under the supervision of the MOCDA. Companies operating in other sectors are subject to the relevant sectoral regulators. For instance:
- banks are regulated by the OJK; and
- fintech companies are regulated by Bank Indonesia.
Regulatory authorities in Indonesia typically have the power to impose sanctions on companies under their jurisdiction. Sanctions are generally applied on a case-by-case basis. In most instances, regulators begin by issuing a warning letter in response to non-compliance with applicable laws and regulations. If the company fails to address the issue, the regulator may impose more severe penalties at its discretion.
1. 8. What is the general regulatory approach to AI in your jurisdiction?
As a comprehensive regulation on AI has yet to be issued in Indonesia, businesses currently follow the provisions set out in MOCI CL 9/2023. This circular letter sets forth the key principles and responsibilities that companies involved in AI development and deployment should observe when operating in Indonesia.
The vice minister of communication and digital affairs has further explained the government's approach to drafting future AI regulations, which is built on three main pillars:
- Policy: The government aims to establish a general AI regulatory framework applicable across sectors, while allowing each sector to develop its own specific regulations as needed.
- People: The focus is on cultivating human resources capable of advancing Indonesia's AI ecosystem.
- Platform: The government emphasises positioning Indonesia as a collaborative space where industry stakeholders can work together to drive the development of the national AI landscape.
2. 1. Which AI applications have become most embedded in your jurisdiction?
In Indonesia, AI is primarily used in chatbots and generative media. Many large corporations – particularly in the banking, e-commerce, telecommunications, and retail sectors – have adopted AI-powered customer service bots to handle customer inquiries and complaints without the need for direct human assistance. Additionally, generative media applications, such as those used to create images and other digital content through AI, are widely used by the general public.
2. 2. What AI-based products and services are primarily offered?
While AI integration in Indonesia has not yet reached significant scale across all sectors, demand for AI-driven solutions is clearly growing. In the legal industry, for example, companies are beginning to offer AI tools for tasks such as:
- conducting legal due diligence; and
- identifying relevant legal precedents.
Similar trends can be seen in other sectors, where AI products and services are being developed to address specific operational needs.
As AI development in Indonesia is still in its early stages, available solutions tend to be highly specialised and tailored to the unique requirements of each sector.
2. 3. How are AI companies generally structured?
In Indonesia, AI companies are not distinguished from other private limited liability companies in terms of legal structure. Typically, businesses offering AI products or services are established as limited liability companies.
In terms of ownership structure, foreign companies entering the Indonesian market often hold a majority stake, while the Indonesian partner typically retains a minority interest. This arrangement is common in joint ventures or foreign direct investment structures in the country.
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