Indonesia Aims to Enhance Network Security for Digital Identity Services
Strengthening Network Security and APIs
The Indonesian government is set to strengthen its network security and reliable application programming interfaces (APIs) for Proof of Identity (PoI) and Proof of Address (PoA) services, aimed at facilitating third-party access. These enhancements require significant investments and may necessitate specific budgetary allocations.
Private Sector to Play a Key Role
The government is also defining the rules of engagement for private sector players, allowing them to utilize verification services available on the national ID infrastructure. This move is expected to encourage fair competition among various actors in the digital economy.
- A standardized list of requirements for different levels of verification services will be published, enabling industry players to choose from a setlist based on their needs and prepare their internal systems accordingly.
- Open APIs will also be utilized to enable developers and service providers to connect securely and seamlessly to the national ID database.
Pricing Strategy to Encourage Adoption
The government is considering different pricing strategies for digital identity services, including making it a public good or adopting a hybrid approach where access is free for public institutions while charging nominal amounts for private sector players. A tiered cost structure will be developed to enable different levels of access.
- Tentative costs per request:
- IDR 400-800 (USD 0.03-0.05) per query for authentication services
- IDR 4,000-7,000 (USD 0.28-0.47) for e-KYC services
Data Protection a Top Priority
To ensure the protection of customer data, Indonesia needs to speed up the establishment of the personal data protection law. The law will serve as a guiding principle to standardize all requirements for private and public sector engagements on digital identity services, mitigating risks related to the abuse of personal data.
- Implementation of data protection protocols is expected to increase confidence among policymakers and consumers in these services, enabling open banking services where users can share or protect their personal data while accessing a range of digital services.
Countries that Have Implemented Digital Identity Infrastructure
India: Free for public sector and nominal charges for private sector Malaysia: Nominal charges for both public and private sectors Pakistan: Nominal charges for both public and private sectors Thailand: Free for both public and private sectors
The Indonesian government’s efforts to enhance its digital identity infrastructure are expected to yield significant cost savings in both the public and private sectors, as seen in countries that have implemented similar initiatives.