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.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
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.