Digital transformation is no longer merely understood as process efficiency, but as a fundamental shift in corporate governance. Amid the demand for swift transactions and global business mobility, the use of electronic signatures (TTE) and digital documents has become a decisive element in maintaining corporate compliance. Corporate compliance is not just about internal regulations, but also about how companies integrate TTE and digital documents as an integral part of their governance systems, while paying close attention to the applicable legal framework and potential legal risks.
Recognition of electronic signatures and digital documents in Indonesia has been reinforced through an increasingly updated legal framework. Law No. 1 of 2024, as the second amendment to the Electronic Information and Transactions Law (ITE Law), reaffirms the legitimacy of TTE and the role of Electronic Certification Providers (PSrE) in ensuring authentication, integrity, and non-repudiation of electronic documents. This law serves as a crucial foundation that places digital documents on equal footing with physical documents in the context of legal evidence. These provisions are further strengthened by Government Regulation No. 71 of 2019 on the Implementation of Electronic Systems and Transactions, which requires electronic system providers to safeguard the security, confidentiality, and integrity of data, including regulations on data retention periods and obligations to delete data that is no longer relevant.
In practice, not all electronic signatures carry the same evidentiary weight. Certified TTE issued by state-recognized service providers offer a higher degree of legal certainty, making them ideal for use in high-risk documents such as strategic commercial contracts, board of directors’ resolutions, and cross-border cooperation agreements. Conversely, non-certified or simple TTE, such as OTP-based approvals, click-to-consent actions, or scanned signatures, remain legally valid but their evidentiary strength depends on supporting evidence such as activity logs, timestamps, or device records. Therefore, companies are required to assess proportionally the type of TTE used against the level of risk and value of each transaction.
Corporate compliance in the use of TTE and digital documents is not merely an administrative formality but also a matter of legal risk management. Disputes over the validity of a signature, for example, can be minimized by using certified TTE while retaining complete metadata, whereas data breach risks can be mitigated through encryption, access restrictions, and internal audit controls. Multinational companies must also pay attention to cross-jurisdictional issues, since recognition of TTE may vary across countries, making it necessary to harmonize domestic regulations with international standards.
Corporate compliance in the digital context requires companies to establish clear internal policies regarding the use of electronic signatures and documents, including identifying which documents must employ certified TTE, setting mechanisms for data retention and disposal, and drafting comprehensive agreements with third-party service providers. This must also be accompanied by strengthening internal awareness through training for employees directly involved in signing and document management processes. Companies should also prepare incident response protocols in cases of suspected manipulation or data breaches, ensuring that electronic evidence is properly secured and legally defensible.
Ultimately, the management of TTE and digital documents forms a vital foundation in safeguarding both corporate reputation and business continuity. When implemented correctly, it not only minimizes the risk of disputes and ensures compliance with the law, but also serves as a strategic tool to enhance corporate credibility in the eyes of business partners and regulators. In today’s digital era, a corporation’s success is determined not only by the quality of its products and services, but also by how effectively it can integrate legal technology into a robust compliance framework that is adaptive to evolving regulations.
If you, a prospective client, have further inquiries about the topic discussed above, Schinder Law Firm is one of many corporate law firms in Indonesia that has handled numerous similar matters, with many experienced and professional corporate and civil lawyers in its arsenal, making it one of the top consulting firms in Indonesia. Feel free to contact us at info@schinderlawfirm.com for further consultation.
Author:
Dewi Susanti