According to the Law of the Republic of Indonesia Number 10 of 2020 on Stamp Duty, Electronic Stamp Duty or e-Meterai is a levied tax on electronic documents. An E-Meterai serves to legally verify an electronic document, thus making it recognised as evidence in court. E-Meterai is issued by the Indonesian Government, available to be purchased at IDR 10.000, this amount is considered as tax paid to the Indonesian Government.
Over the years, Stamp Duty or Materai has existed in a physical form which is applied or stamped into a physical document. While the physical form of Stamp Duty is still recognised by the law, economic activities have evolved significantly alongside the advancements of technology. As the world becomes more digitized, the documents being used in economic activities are no longer printed with paper, but rather sent and shared in digital form.
As such, the regulations regarding this matter must also be adaptive. On October 1st 2021, the Ministry of Finance, on behalf of the Government of the Republic of Indonesia, officially launched the Electronic Stamp Duty or E-Meterai.
These are the documents that must have Electronic Stamp Duty or E-Meterai:
- Memorandum of Understanding (MoU), reference letter, statement letter
- Notarial deeds, copy or original
- Land Deed Officer’s deeds
- Commercial documents
- Commercial transaction documents
- Tender documents
- Documents mentioning a sum of money above IDR 5 million that are either in a form of receipt or debt/settlement
Digital Signatures on Electronic Stamp Duty or E-Materai
In a physical document, the owner is obligated to write their signature on the Stamp Duty or Meterai, half of the signature on the paper and half touching the surface of the Stamp Duty. This is done in order to verify the identity of the document’s owner. Should the document ever become disputed in court, the signature serves as evidence that the document was signed by the owner.
The legal status of digital signatures in Indonesia is validated by Article 1 Number 12 of Law Number 19 of 2016 concerning Amendments to Law Number 11 of 2008 regarding Information and Electronic Transactions (UU ITE). That being said, it can be concluded that digital signatures are recognised by law and are allowed to be used in transactions.
Image courtesy of: ZICO Law
Along with the launching of Electronic Stamp Duty/E-Materai, the usage of digital signatures has been in discussion yet again. In relation to the usage of digital signatures on E-Meterai, there has been a new regulation update. It has been confirmed that digital signatures can be used with an E-Meterai. However, there is a fundamental difference. On a physical document, the signature of the owner must touch the surface of the Stamp Duty/Meterai. Meanwhile, on a digital document, digital signatures are not allowed to touch the surface of the Electronic Stamp Duty/E-Meterai, but rather signed beside it. This is done to avoid obstructions to the QR Code that has been installed there. This particular QR Code is an important feature to ensure the validity of the Electronic Stamp Duty/E-Meterai.
How can Double M help?
Using a digital signature on E-Meterai is an implementation of technological advancement in business practices. Double M strives to help our clients’ keep track of the regulation changes relevant to their business. Should you have any inquiries, please contact us.