Pramatech

To give value with IT implementation

The Value of Digital Signatures in Indonesian Banking Reports

[Bahasa Indonesia]

Introduction

The usage of digital signatures (TTE) has emerged as a practical way to expedite administrative procedures in the increasingly sophisticated digital age, notably in the financial industry. Government Regulation No. 71 of 2019 concerning the Implementation of Electronic Systems and Transactions (PP PSTE), Law No. 11 of 2008 concerning Electronic Information and Transactions (UU ITE), which was later amended to Law No. 19 of 2016 govern the implementation of TTE in Indonesia, and Regulation of the Minister of Communication and Information Technology No. 11 of 2022 concerning Governance of Electronic Certification Implementation.

Digital signatures are essential in the banking industry, particularly when it comes to financial reporting to the Financial Services Authority (OJK). The significance of TTE and its benefits for boosting the effectiveness and security of the banking reporting process will be discussed in this article.

Digital Signature Regulations in Indonesia

Banking institutions must confirm that the signatures they use adhere to Indonesian legal requirements prior to implementing E-signatures (ETEs). Government Regulation No. 71 of 2019 distinguishes between two categories of digital signatures:

  1. Common digital signatures are applied to papers that pose no danger.
  2. Because they use an digital certificate from a government-recognized Electronic Certificate Provider (PSrE), like the National Cyber and Crypto Agency (BSrE) or a private PSrE registered with the Ministry of Communication and Information, Certified Electronic Signatures (TTET) have the same legal force as a wet signature.

Banks are required to utilize TTETs for reporting to the Financial Services Authority (OJK) in order to guarantee the security and validity of documents.

Benefits of Digital Signatures in Banking Reporting

1. Reporting Process Efficiency and Speed

  • Replaces manual procedures that call for mailing documents, printing them, and physically signing them.
  • Real-time reporting to the OJK lowers the possibility of delays.

2. Savings on Operational Costs

  • Lowers the price of storing, mailing, and printing paper documents.
  • Reduces the amount of archival space required because digital copies of documents can be kept.

3. Enhanced Integrity and Security of Data

  • The risk of signature forgery is decreased by TTET’s identity verification and encryption features.
  • A timestamp and digital certificate are included with every electronically signed document to guarantee its legitimacy.

4. Adherence to the OJK Rules

  • Through POJK No. 12/POJK.03/2017 about the Implementation of the Anti-Money Laundering and Prevention of Terrorism Financing Program (APUPPT), which calls for the use of digital technology, the OJK promotes the digitization of banking reporting.
  • Banks can carry out their reporting responsibilities more precisely and openly with TTET.

5. A Better Audit Trail

  • Internal and external audit procedures are made easier by the activity log that is kept for each document that is electronically signed.
  • Data can be tracked more methodically, which makes OJK’s monitoring easier.