In today’s digital era, more companies are using digital signatures when entering into agreements. This has raised new questions regarding the validity and legal force of such digital signatures. 

The answer is: Valid! According to Undang-Undang nomor 19 tahun 2016 about concerning Electronic Information and Transactions “An Electronic Signature is a signature consisting of Electronic Information that is attached to, associated with, or related to other Electronic Information which is used as a means of verification and authentication.”

A digital signature is considered valid if it meets specific requirements as stipulated in the Electronic Information and Transactions Law. These requirements include the following:

  • It is created in a private manner and is known only by the signature owner.
  • The original owner has full authority to use it.
  • Any changes to the digital signature can be clearly detected.
  • All modifications to the electronic information related to the signature can be identified.
  • There is a specific method to accurately verify the identity of the signature owner.
  • There is a specific method to prove that the owner has given consent regarding certain electronic information.

An electronic signature holds evidentiary power in court if it has been registered with a Certification Authority (CA). The CA functions similarly to a public official by providing the necessary infrastructure, including the ability to detect the exact time a signature was executed in an electronic transaction. Digital signatures certified by a CA are generally more reliable in terms of authenticity due to their high-level security systems, making them extremely difficult to forge.

Therefore, conventional and electronic signatures hold the same legal standing. The difference lies in the fact that electronic signatures must meet the requirements set out in Undang-Undang Nomor 11 Ayat (1) of the Electronic Information and Transactions Law.