Digital signatures have grown in popularity along with the digital transformation of the work environment and the rise of the digital economy. In Indonesia, digital signatures have been legalized by the 2008 Electronic Information and Transaction Law (UU ITE), followed by Government Regulation (PP) no. 71 2019. How secure are digital signatures? Read on to find out.
Definition of Digital Signature
Before discussing digital signatures, we should first understand the meaning of digital signatures. A digital signature consists of digital information attached, linked, or related to other digital information used to verify and authenticate.
Main Functions of Digital Signature
The three main functions of digital signatures are:
- To ensure the authenticity of the document and the identity of the verified signer;
- To ensure the integrity of the document, i.e., that it remains unchanged;
- To ensure that the signatory cannot deny or "repudiate" the signed document.
Certified digital signatures are a very secure technology because they have encryption features that ensure that signatures cannot be faked. There is biometric verification with activation detection authentication before signing to reduce digital identity fraud.
Advantages of Digital Signatures
Following are the benefits of using a digital signature:
Cost and Time Efficiency
Companies no longer incur unnecessary costs such as printing files to do signatures. This reduces operational costs or allows cost savings to be allocated for other purposes.
Digital signatures can be conveniently accessed from computers, laptops, tablets, and smartphones.
Fast and Practical
Documents can be signed more quickly and practically because the parties involved do not need to meet in person.
Safe and Comfortable
Digital signatures are protected with a user biometric authentication system. If the data provided does not match the recorded data, then the person's identity will not be verified, and he/she will not be able to access the signature.
Digital documents don't take up physical space and can be easily retrieved anytime with the search feature. Documents are stored in digital form on the Cloud, preventing them from being lost or damaged.
Digital Signature For Business
Digital signatures can be used to sign a wide variety of digital documents. They can be used for banking or financial loan agreements and business agreements between corporations and individuals.
Digital signatures can be a solution for businesses regarding operational efficiency, speed up the signing process, and minimize forgery.
No less critical, digital signatures can be accessed from anywhere and at any time, making them very suitable for highly mobile business people and also effective for company employees.
State Institution Certified
In Indonesia, one of the requirements for digital signatures is that they must be certified by related institutions such as the Ministry of Communication and Information and the Financial Services Authority (OJK).
This is in line with Government Regulation Number 71 of 2018 concerning the Implementation of Electronic Systems and Transactions, which states that digital-signature services or service providers must be registered with the government.
This certification is also used to guarantee the validity of the digital signature of a person, agency, institution, or corporation when conducting transactions.
VIDA: The Right Choice For Your Business
In addition to being recognized as a registered PSrE under the Ministry of Communications and Informatics, VIDA is also the first Indonesian PSrE to receive global WebTrust certification. VIDA is also registered in the Financial Services Authority (OJK) regulatory sandbox.
In less than three years since its inception, VIDA has attracted the trust of various global digital-signature providers, or Trust Service Providers, who now collaborate with VIDA to provide electronic certificates legally in Indonesia through an electronic certificate issued by VIDA.
VIDA provides a digital-identity platform across digital channels with the highest security and compliance standards using world-class technology for end-to-end solutions.
VIDA Sign is a digital-signature application issued by VIDA that makes it easier for customers to execute fast and simple digital signatures.
You only need to use the applications and platforms provided, then decide which documents you want to sign digitally. You will receive a token and also go through an easy identity verification process with a facial scan.
Using this approach, VIDA provides the best experience for users in Indonesia. It allows business partners to sign documents anywhere, anytime, and from any device.
Find out more about VIDA Sign by contacting us.