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August 1, 2022

Indonesia enables temporary access to PayPal following backlash on ban

Indonesia has allowed users to temporarily access their PayPal accounts after a government ban on the payment giant prompted an outcry among users, reported Reuters.

The Indonesian communication ministry blocked PayPal, alongside search engine Yahoo! and a number of gaming services, citing their failure to comply with a deadline under licensing rules.

According to rules laid out by the ministry in late November 2020, a licensing registration is required for all electronic service providers (ESPs).

This enables authorities to have broad powers over such platforms to force them to disclose data of certain users and remove content deemed unlawful or that “disturbs public order”.

Indonesia’s Communications Ministry senior official Semuel Pangerapan said in an online briefing that the government is temporarily lifting the ban on PayPal for five working days.

“Hopefully that is enough time for users to migrate, get their money and find other services,” Pangerapan was quoted as saying. He also said that PayPal has not responded to the ban yet.

The government opened access to PayPal after scathing comments flooded an Instagram post by Communication Ministry on the ban of unregistered digital services.

The critics said that the government’s move was hurting the online gaming industry in Indonesia and freelance workers who use PayPal.

Semuel said that the government would lift the blockade on the platforms if they comply with the licencing registration requirements.

He added that the rule is part of the government’s measure to protect Indonesian internet users and the digital ecosystem.

Last week, it was reported that Bank Indonesia is preparing to launch its own digital currency for wholesale use with an aim to help various stakeholders to transfer money easily.

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