Electronic Stamp Duty (E-Stamp) and Electronic Signatures: Must They Be Used Together?

The digitalization of documents has led to the increasing use of electronic stamps (e-stamps) and electronic signatures (e-signatures) in various transactions, including electronic agreements. Although both are frequently used in the same document, e-stamps and e-signatures serve different functions and are subject to different legal requirements.

Understanding Electronic Stamp Duty (E-Stamp)

Under Law Number 10 of 2020 on Stamp Duty, a stamp is a label or strip in adhesive, electronic, or other form that contains certain characteristics and security features, is issued by the Government, and is used for the payment of tax on documents.

An electronic stamp (e-stamp) is a stamp in the form of a label that is affixed to an electronic document through a designated electronic system.

Unlike a physical adhesive stamp, an e-stamp contains a unique code and specific information as security features. The unique code includes, among other things, a serial number consisting of at least 22 alphanumeric characters. An e-stamp also contains:

1. an image of the national emblem, Garuda Pancasila;
2. the words “METERAI ELEKTRONIK” (Electronic Stamp); and
3. figures and wording indicating the applicable stamp duty tariff.

An e-stamp is affixed through the Electronic Stamp System, which comprises a series of electronic devices and procedures within an integrated system or application used to create, distribute, and affix electronic stamps.

Pursuant to Minister of Finance Regulation Number 78 of 2024 on the Implementing Provisions for Stamp Duty, Perum Peruri is responsible for implementing the contract for the production and distribution of electronic stamps, including ensuring their availability.

Accordingly, an e-stamp is deemed valid where it is affixed through the Electronic Stamp System in accordance with the applicable laws and regulations.

Documents Subject to Stamp Duty

In principle, Stamp Duty is imposed on documents made to evidence events of a civil nature and documents used as evidence in court proceedings.

Documents subject to Stamp Duty include:

1. agreements, certificates, statements, and other similar documents, including their counterparts;
2. notarial deeds, including their executorial copies (grosse), copies, and excerpts;
3. deeds executed by Land Deed Officials (Pejabat Pembuat Akta Tanah or “PPAT”), including their copies and excerpts;
4. securities, regardless of their name or form;
5. securities transaction documents, including futures contract transaction documents, regardless of their name or form;
6. auction documents;
7. documents stating a monetary amount with a nominal value exceeding IDR 5 million, insofar as they acknowledge the receipt of money or contain an acknowledgment that a debt has been fully or partially settled or accounted for; and
8. other documents as stipulated under applicable laws and regulations.

Stamp Duty may also apply to documents used as evidence in court proceedings, including documents for which Stamp Duty has not previously been paid or documents that were not previously subject to Stamp Duty in accordance with the applicable regulations.

Electronic Signatures (E-Signatures)

Unlike an e-stamp, an electronic signature (e-signature) is a signature consisting of electronic information that is attached to, associated with, or linked to other electronic information and is used as a means of verification and authentication.

The primary function of an electronic signature is to authenticate and verify:

1. the identity of the signatory; and
2. the integrity and authenticity of the electronic information.

For an electronic signature to have valid legal force and effect, it must satisfy certain requirements, including that the electronic signature creation data is linked to and remains under the control of the signatory, that any subsequent alteration to the signature or the related electronic information can be detected, that the identity of the signatory can be verified, and that there is a mechanism demonstrating the signatory’s consent to the relevant electronic information.

In general, electronic signatures are classified into:

1. Certified Electronic Signatures

A certified electronic signature must satisfy the validity requirements prescribed by applicable laws and regulations, use an electronic certificate issued by an Indonesian Electronic Certification Provider (Penyelenggara Sertifikasi Elektronik or “PSrE”), and be created using a certified electronic signature creation device.

2. Uncertified Electronic Signatures

An uncertified electronic signature is an electronic signature created without using the services of an Indonesian PSrE. Although it is not certified, its validity must nevertheless be assessed against the legal requirements applicable to electronic signatures under the prevailing laws and regulations.

Must an E-Stamp Always Be Used Together with an E-Signature?

In principle, there is no provision that expressly requires an e-stamp to always be used together with an e-signature.

This is because the two serve different legal functions.

An e-stamp constitutes an instrument for the payment of Stamp Duty on a document, whereas an e-signature serves as a means of authenticating and verifying the identity of the signatory and the integrity of an electronic document.

Accordingly, the presence of an e-stamp does not replace the function of an electronic signature. Conversely, the presence of an electronic signature does not, in itself, satisfy the Stamp Duty obligation where the relevant document is subject to Stamp Duty.

Use of E-Stamps in Electronic Agreements

With respect to agreements and their counterparts, pursuant to Article 8 paragraph (1) letter a point 1 of the Stamp Duty Law, Stamp Duty becomes payable when the document is signed.

This means that once an agreement has been finalized and signed by the parties, the Stamp Duty obligation arises at that time.

Where an agreement is executed in electronic form, an e-signature and an e-stamp may, in practice, be applied to the same document in accordance with their respective functions, provided that the applicable legal validity requirements are satisfied.

Importantly, however, a stamp is not, in principle, a requirement for the validity of an agreement. Stamp Duty constitutes a tax obligation imposed on certain documents. Therefore, the absence of a stamp does not automatically render an agreement invalid, provided that the legal requirements for a valid agreement under Indonesian civil law have otherwise been satisfied.

Where Stamp Duty payable on a document has not been duly settled, particularly where the document is subsequently intended to be used as evidence in court proceedings, the outstanding Stamp Duty may be settled through the subsequent stamping (pemeteraian kemudian) mechanism in accordance with the applicable laws and regulations.

Conclusion

E-stamps and e-signatures are two distinct legal instruments, notwithstanding that both are used within the framework of electronic documents.

An e-stamp serves as evidence of the payment of Stamp Duty on a document, whereas an e-signature serves as a means of authenticating and verifying the identity of the signatory and the integrity of an electronic document.

There is no provision requiring the two to always be affixed simultaneously. However, in the case of an electronic agreement that constitutes an object of Stamp Duty, the Stamp Duty obligation arises when the document is signed.

Accordingly, the use of e-stamps and e-signatures should be determined by reference to the type of document, the point in time at which Stamp Duty becomes payable, and the legal validity requirements applicable to electronic signatures under the prevailing laws and regulations.

It should also be emphasized that the presence of a stamp does not determine the validity of an agreement. Stamp Duty relates to a tax obligation imposed on a document, whereas the validity of an agreement is determined by whether the applicable legal requirements for a valid agreement have been satisfied.

References

1. Law Number 11 of 2008 on Electronic Information and Transactions;
2. Law Number 19 of 2016 on the Amendment to Law Number 11 of 2008 on Electronic Information and Transactions;
3. Law Number 10 of 2020 on Stamp Duty;
4. Law Number 1 of 2024 on the Second Amendment to Law Number 11 of 2008 on Electronic Information and Transactions;
5. Government Regulation Number 86 of 2021 on the Procurement, Management, and Sale of Stamps;
6. Minister of Communication and Informatics Regulation Number 11 of 2022 on the Governance of Electronic Certification; and
7. Minister of Finance Regulation Number 78 of 2024 on the Implementing Provisions for Stamp Duty;
8. Hukum Online