Building trust and security with digital signatures from PSrE
It’s Wednesday again, which means it’s time for Privy Presents, a newsletter specifically curated by Privy team to discuss digital identity and other closely related topics, delivered to you every Wednesday.
The use of certified digital signatures in business has become increasingly widespread since it can provide security, legal validity, and trust in digital transactions. The public trust in certified digital signatures cannot be separated from the important role of the Certificate Authority or “Penyelenggara Sertifikat Elektronik” (PSrE). PSrE helps to support a safe, efficient, and trusted digital transformation in Indonesia, including for business matters.
Get to know PSrE
In Indonesia, the legal entity responsible for issuing electronic certificates for individuals, organizations, or entities that wish to use certified digital signatures is called the Penyelenggara Sertifikat Elektronik (PSrE). Certificates issued by PSrE can be used as digital identities that connect public keys with their legitimate owners. In issuing electronic certificates, PSrE implements a verification process to ensure the validity of the user’s identity and prevent identity forgery or misuse of electronic certificates.
In addition to issuing electronic certificates, PSrE is also responsible for managing the electronic certificates’ active period, including renewal, revocation, and maintenance. If there is misuse or a change in personal information, such as losing the device used for electronic signature, PSrE can revoke the certificate to maintain user security.
Hence, PSrE plays an important role in maintaining the security of digital transactions, and building trust among businesspersons, consumers, and governments by ensuring the authenticity and validity of digital identities. With an authority responsible for verifying and issuing electronic certificates such as PSrE, users can be more confident that their transactions are secure, data is protected, and there is no potential for fraud or misuse.
The role of PSrE in the digital ecosystem
Digitalization as an impact of technological development has influenced the increase in electronic transactions in Indonesia. In 2023, Indonesia was recorded as the largest contributor to e-commerce gross merchandise value (GMV) in Southeast Asia with a value of USD 53.8 Billion. The high level of electronic transactions creates a loophole for irresponsible individuals to commit crimes, including identity theft.
The presence of PSrE is to create a safer and more trusted environment for conducting electronic transactions. PSrE helps to ensure user identities’ security in electronic transactions to prevent such crimes. Electronic certification issued by PSrE helps build trust between parties involved in electronic transactions. This helps reduce the risk of fraud and thievery in the digital business environment.
Securing business documents with certified digital signatures
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The National Cyber and Crypto Agency recorded 207 alleged data leaks in Indonesia throughout 2023, including cyberattacks on businesses targeting companies that resulted in customer data theft and financial losses. One of many ways to prevent the risk of such crimes in a company is by using digital signatures for business.
Certified digital signatures use digital certificates issued by PSrE, which have gone through a strict identity verification process. This ensures that only authorized and verified parties can sign documents. This identity verification process reduces the risk of fraud or the use of fake signatures.
Moreover, digital signatures created from PSrE use a very strong cryptographic mechanism to encrypt information related to documents and signatures, so that business documents containing sensitive or confidential information are protected from the risk of data leakage or access by unauthorized parties. In addition, certified electronic signatures also produce an audit trail that documents all transaction details, so that who, when, and where the document was signed can be fully recorded.
Electronic certificates issued by PSrE have the same legal validity as conventional signatures. This means transactions carried out electronically using PSrE certification have officially recognized legality.
As we have reached the end of the newsletter, we would like to remind you once again to be careful when you are making transactions digitally and always use a trusted platform.
Thank you for reading and see you again next week!
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