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E-signature firms eagerly await data protection law
They say personal data security is key to building consumer trust and enabling the industry’s growth.
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Digital signature app VIDA (Courtesy of VIDA/-)
E
lectronic signature start-ups are looking forward to the passing of the personal data protection (PDP) bill as they believe the policies it contains would increase trust in the industry and attract more users.
E-signature provider VIDA cofounder and CEO Sati Rasuanto said that while the country had several existing regulations on data protection, the PDP bill would serve as the encompassing regulation.
“Digital identity providers welcome this law because it can increase users’ trust, and trust is the basis for our industry to grow,” she said during an online discussion on Wednesday.
The bill provides rules on the use of personal data and penalties for infractions. Drafted and proposed by the government in 2014, the bill was listed as a priority last year, but deliberations in the House of Representatives have been slow, and stages of the process have been postponed several times. The government hopes to pass the bill this year.
E-signature providers use personal identification information, big data and encryption technology to guarantee the authenticity of a signature without in-person verification. Such signatures can be used for online peer-to-peer (P2P) lending and online investment, among other applications.
A 2019 Microsoft and IDC Asia report found that 56 percent of respondents in Indonesia would switch to another online service if they had trust or privacy concerns. Meanwhile, 37 percent would decrease their use of the digital service and 33 percent would stop using the service altogether.
“Apps that neglect their users’ data protection need to worry because consumers will leave,” said Center of Economics and Law Studies (CELIOS) director Bhima Yudhistira during the discussion. “While consumers will try different digital services, they will ultimately choose the ones that are trusted.”
