Indonesia has temporarily frozen World’s license due to suspected violations of electronic system regulations, increasing global legal pressure on this project.
The Indonesian Ministry of Communication and Digital (Kominfo) has just made a decision to temporarily freeze the Electronic System Organization License (TDPSE) for World and World ID services, marking another legal hurdle for this controversial project. The decision was made after authorities received reports from the public about suspicious activities in the Indonesian market.
Serious violations of registration and operation regulations
Alexander Sabar, Director General of the Digital Space Monitoring Department of the Ministry of Communication and Digital, confirmed that this is a precautionary measure to mitigate risks to the community. According to preliminary investigations, PT. Terang Bulan Abadi – the entity believed to be directly operating World in Indonesia – not only lacks the mandatory TDPSE license but also uses a license registered under another legal entity, PT. Sandina Abadi Nusantara.
“Failure to comply with registration obligations and using another legal entity's name to provide digital services is a serious violation,” Mr. Sabar emphasized. Both involved legal entities will be summoned to clarify the matter in the coming time.
Indonesia is currently implementing Government Decree No. 71 of 2019 and Ministry of Communication and Information Circular No. 10 of 2021, clearly stating that all digital service providers must register legally. This is part of the government's efforts to monitor and protect the national digital space.
The legal issue with World in Indonesia is part of a broader picture of the challenges this project is facing globally. In Europe, countries like France and Germany are investigating the legality and safety of biometric data collection. The UK Information Commissioner's Office (ICO) is also reviewing compliance with the General Data Protection Regulation (GDPR).
Kenya has suspended all operations of World since August 2023 due to concerns over data privacy, and this suspension remains in effect while the investigation continues. In the United States, although there is no nationwide ban yet, the method of biometric data collection combined with cryptocurrency distribution is raising concerns among lawmakers and privacy advocacy organizations.
Mr. Sabar reaffirmed Indonesia's commitment to fairly and rigorously monitor the digital ecosystem, emphasizing the importance of proactive roles from the public in reporting unlicensed or suspicious digital services.