Indonesia suspends Worldcoin’s operations over regulatory violations
The Ministry of Communication and Digital of Indonesia has officially suspended Worldcoin’s operating permit. Worldcoin, co-founded by OpenAI CEO Sam Altman, has come under scrutiny following public reports of suspicious activity related to Worldcoin and World ID.
On 4 May 2025, the Ministry of Communication and Digital announced that it had halted the Electronic System Organizer Registration Certificate (TDPSE) for Worldcoin and WorldID services. The ministry will promptly summon PT. Terang Bulan Abadi and PT. Sandina Abadi Nusantara to clarify alleged violations of electronic system implementation provisions.
The legal trouble begins
Terang Bulan Abadi manages Worldcoin’s operations in Indonesia, but according to the ministry, it lacks the necessary electronic system provider (PSE) licence. Instead, the website operates under a licence held by a different entity, Sandina Abadi Nusantara.
Alexander Sabar, Director General of Cyberspace Oversight at the ministry, said: “This suspension is a preventive measure to protect the public from potential risks. We will summon Terang Bulan Abadi for an official clarification. Our investigation found that Worldcoin was using a PSE licence registered under Sandina Abadi Nusantara.”
Details of the investigation
Indonesian law requires all digital platforms to register as electronic system providers. However, Worldcoin’s local representative bypassed this requirement, attempting to operate using another company’s credentials. The ministry identified this as a regulatory violation.
Sabar added, “Noncompliance with registration obligations and the use of another legal entity’s identity to run a digital service constitutes a serious violation. We invite the public to help maintain a safe and trusted digital space for all citizens. We also appeal to the public to remain vigilant against unauthorised digital services and to immediately report suspected violations through the official public complaint channel.”
Indonesia’s digital ecosystem and regulation
Indonesia’s digital ecosystem is experiencing rapid growth, with projections indicating its digital economy could reach up to USD 120 billion by 2025 and potentially USD 360 billion by 2030. The government is also focusing on developing digital skills, aiming to produce 600,000 digitally proficient individuals annually to meet the anticipated demand of nine million digital workers over the next 15 years.
To support this digital transformation, Indonesia is implementing regulations to ensure a secure and inclusive digital environment. The Personal Data Protection Law, enacted in 2022, establishes a legal framework for data privacy and security. International collaborations, such as the ASEAN Digital Economy Framework Agreement (DEFA), are also underway to promote regional digital integration and cooperation.
The US expansion amid international issues
The suspension is aimed at preventing potential data exploitation and misuse before it becomes a disaster. Indonesia isn’t the first country to raise concerns. Kenya, Germany, and other countries have also launched investigations. Despite these global hiccups, Worldcoin is launching in Atlanta, Austin, Los Angeles, Miami, Nashville, and San Francisco. Americans will also be offered tokens to verify their identity, which raises the same privacy concerns.
