Electronic System Operator Business Activities (PSE)
Understanding the Role and Business Activities of an Electronic System Operator (PSE)
In the digital economy, the Electronic System Operator (PSE – Penyelenggara Sistem Elektronik, as known in Indonesia) plays a central role in enabling and managing the flow of electronic data, services, and transactions. As businesses, governments, and consumers increasingly rely on digital platforms, the importance of a well-regulated and efficient PSE grows. But what exactly does a PSE do, and what are its core business activities?
A PSE is any individual, organization, or business entity that operates and manages an electronic system, either for their own use or for the public. This includes everything from websites and mobile apps to cloud services, e-commerce platforms, financial tech services, and even government portals. If the system collects, processes, or distributes electronic data, and provides digital services to users, it falls under the scope of a PSE.
One of the key business activities of a PSE is data management. This includes collecting, storing, processing, and protecting user data. Whether it’s personal information on a social media platform or transaction data on an e-commerce site, the PSE is responsible for ensuring that data is secure and handled according to regulations. This includes compliance with data privacy laws such as Indonesia’s PDP Law (Personal Data Protection Law), which imposes strict requirements for consent, data use, and cross-border transfers.
Another major responsibility is system security and reliability. A PSE must ensure its platforms are accessible, operational, and resilient against cyberattacks or technical failures. This means investing in cybersecurity infrastructure, monitoring systems 24/7, and having disaster recovery protocols in place. For public-facing PSEs, downtime or breaches can result in massive reputational damage and regulatory fines.
PSEs also engage in transaction facilitation. Digital platforms often act as intermediaries between buyers and sellers, service providers and consumers, or users and digital content. This includes managing payments, delivering services, tracking interactions, and maintaining records. In this sense, PSEs operate as digital enablers, helping other businesses reach and serve customers efficiently.
A more strategic business activity is innovation and service development. To stay competitive, PSEs continuously improve their systems, expand features, and create user-centric digital experiences. This may involve integrating AI, automation, data analytics, or cloud computing to enhance performance and user engagement.
In many jurisdictions, especially Indonesia, PSEs are also subject to licensing and registration requirements. Businesses operating as PSEs must register with the Ministry of Communication and Information Technology (Kominfo), comply with local hosting rules, and adhere to content moderation policies.
Conclusion
Electronic System Operators are not just tech providers—they are the backbone of digital services in today’s economy. From safeguarding data to enabling seamless online transactions, their business activities are critical to the functioning of modern society. For any company operating digitally, understanding the responsibilities and expectations of a PSE is not optional—it’s essential. As digital transformation continues to accelerate, the role of the PSE will only grow in importance, shaping how we interact, trade, and live in a connected world.
