Indonesia has temporarily frozen World’s Electronic System Organizer Registration Certificate (TDPSE) due to alleged violations of electronic system regulations.
Indonesia Freezes World’s License Over Regulatory Violations
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World’s Violation of Electronic System Rules
The Indonesian Ministry of Communication and Digital has temporarily frozen the Electronic System Organizer Registration Certificate (TDPSE) for World (formerly Worldcoin) and Worldid services, citing alleged violations of electronic system implementation regulations. The ministry has also announced it will immediately summon PT. Terang Bulan Abadi and PT. Sandina Abadi Nusantara, the entities linked to World’s operations in the country, to provide clarification.
The Indonesian ministry made the decision following public reports on suspicious activities conducted by World. Director General of Digital Space Supervision at the communication ministry, Alexander Sabar, explained that the license freeze is a precautionary measure.
“This freezing is a preventive measure to prevent potential risks to the community. We will also summon PT. Terang Bulan Abadi for official clarification in the near future,” the director general said.
According to the ministry, initial investigations found that PT. Terang Bulan Abadi, which it claims is directly involved with World’s operations, is not only registered as an Electronic System Organizer (PSE) but also lacks the obligatory TDPSE. Furthermore, World is accused of utilizing a TDPSE registered under a different legal entity, PT. Sandina Abadi Nusantara.
World’s Growing Regulation Problem
Indonesian regulations, specifically Government Regulation Number 71 of 2019 and the Ministry of Communication and Information Regulation Number 10 of 2021, reportedly mandate that all digital service providers be legally registered.
“Non-compliance with registration obligations and the use of the identity of another legal entity to carry out digital services is a serious violation,” Sabar stressed.
World has faced regulatory scrutiny globally due to concerns about data privacy, security, and its iris-scanning technology. In Europe, countries like France and Germany have launched investigations into the legality and security of World’s biometric data collection practices, while the UK’s Information Commissioner’s Office ( ICO) is examining its compliance with GDPR.
In August 2023, Kenya suspended World’s operations over data privacy issues and the absence of a regulatory framework, with the suspension still in effect as investigations continue. In the United States, while there is no nationwide ban, the project’s unique approach to biometric data collection and cryptocurrency distribution has raised concerns among lawmakers and privacy advocates.
Meanwhile, Sabar emphasized the Indonesian government’s commitment to maintaining a secure digital environment. “The Ministry of Komdigi is committed to overseeing the digital ecosystem fairly and firmly to ensure the security of the national digital space. In this case, the active role of the community is also very much needed.”
The director general also called on the public to remain vigilant and report any unauthorized digital services.
