Indonesia’s Ministry of Communication and Informatics (Kominfo) has recently taken a significant step by temporarily suspending the operations of Worldcoin and its digital identity platform, World ID, within the country. This decision, effective early May 2025, follows public reports of alleged suspicious activities and aims to safeguard the personal data of Indonesian citizens.
Kominfo cited several key reasons for the suspension. Firstly, Worldcoin’s operating permit was reportedly not in order, with the platform operating under a license belonging to a different legal entity. This discrepancy raised serious concerns about regulatory compliance and accountability. Secondly, Kominfo highlighted the mandatory requirement for all digital service providers to register as Electronic System Operators (PSE) under Indonesian law, a requirement Worldcoin seemingly hadn’t fully met.
A primary area of concern revolves around Worldcoin’s method of collecting personal data, specifically the mandatory iris scans in exchange for its cryptocurrency token, WLD. Kominfo expressed worries about the potential risks associated with collecting such sensitive biometric data, emphasizing its uniqueness and the potential for misuse if it falls into the wrong hands. This aligns with the global scrutiny Worldcoin has faced in other regions regarding data privacy and security.
Following the suspension, Kominfo has summoned representatives from Worldcoin’s local entities to provide further clarification on their operational permits and the purpose behind the extensive collection of biometric data. The ministry has stated that the suspension will remain in effect until a satisfactory explanation and proper compliance are demonstrated.
This move by Kominfo underscores Indonesia’s commitment to protecting its citizens’ digital rights and ensuring that all data collection practices adhere to the nation’s data protection laws, particularly Law No. 27 of 2022 on Personal Data Protection (PDP Law). The case serves as a crucial reminder for global digital service providers operating in Indonesia to prioritize regulatory compliance and data privacy from the outset.