Certified Digital Signatures in Indonesia
Basically, a digital signature is not a signature on paper and then scanned into a digital document. Instead, it contains encrypted electronic information in the form of an electronic certificate as a means of verification and authentication.
In Indonesia and throughout the world, a valid digital signature uses a cryptographic security mechanism and is issued by an Electronic Certificate Operator (PSrE). The PSrE is a registered body that is certified to issue Electronic Certificates so that digital signatures can be recognized as legally binding in Indonesia.
The PSrE must have a high level of information technology system protection and meet several requirements. The digital signature issued by the PSrE can only be owned and used by users whose identity has been verified by PSrE and cannot be transferred or used by other people.
Digital Signature Development
Along with the rapid development of technology, many business sectors are adapting to running their business digitally. This change has increasingly been felt during the pandemic. As part of efforts to minimize the spread of Covid-19, the government issued a regional restriction policy that requires companies to Work From Home (WFH) so that most business activities and financial transactions are carried out online.
One of the important infrastructures in this operational change from conventional to digital is digital signatures which are used for authentication and verification of important documents. According to Article 11 of Law Number 11 of 2008 concerning Information and Electronic Transactions, digital signatures have legal force and legal consequences as long as they meet the requirements.
Benefits for Businesses
Here are some advantages of digital signatures for various business sectors.
1. Increased efficiency
Switching to digital signatures and digital documents can increase your operational efficiency. Reducing the use of paper documents that slow down work or have the potential to cause errors, will make the work process faster.
2. Environmentally friendly
Eliminating the paper and power used by printers and scanners will help reduce your carbon footprint and make your business more environmentally friendly.
3. Cost savings
Paper, printer, and printer ink may seem like small expenses for your business, but the larger the scale of your business, the more it will cost to print important documents. A digital signature can yield cost savings that can then be allocated for other needs.
4. Customer and partner satisfaction
Digital signatures create a simpler and faster document validation process that can increase the satisfaction of your customers and partners.
5. Business continuity
Printing important documents with paper is the conventional way. Switching to digital signatures will help keep your business competitive in the digital age.
6. Tidier document filing
Digital documents are also easier to store because they don't take up physical space, and can be easily retrieved at any time with the search feature. To prevent loss and damage of documents, documents will be stored in digital form in the Cloud.
7. Document security
Digital signatures are non-transferable; they can only be used by you. This prevents forgery of signatures and identities on documents.
Businesses from various industries require certified digital signatures. Here are some of them:
Financial services and transactions are invariably important and confidential documents that must be signed. These include withdrawal forms, deposit forms, mortgage application forms, loan forms, profit and loss reports, expense coverage reports, and others. The use of certified digital signatures makes the validation process more effective, and having a digitally organized record of documents is very useful during audits.
All legal documents require a signature to show that the relevant party agrees with the contents of the document. This signature is legally binding, because digital signatures have permanent legal force. Some countries have separate rules governing the procedure for digital signatures, including the settlement in the eyes of the law and in court as authentic evidence.
Property agents require multiple contracts to be signed by partners, such as certificates of ownership, building permits, building use rights, and other documents. With a ‘wet’ signature, the agent must physically visit the partner, or vice versa. This requires schedules to be adjusted and synced, traffic to be negotiated, and time to be wasted. To be more efficient in terms of time and effort, property businesses should consider using certified digital signatures.
In the insurance sector there are a lot of documents such as insurance policies or claim disbursement processed every day. Digital signatures make the document management and validation processes much easier, both from the agent's perspective and from the policyholder's perspective.
Choose the Right Certified Electronic Signature
Pay attention to the legality, features, fees, and services of the service provider when choosing a certified electronic signature. VIDA is an Electronic Certificate Operator (PSrE) registered with the Ministry of Communication and Information of the Republic of Indonesia which has an electronic signature feature called VIDA Sign. Find out more about VIDA Sign by contacting us.