Indonesia Suspends Worldcoin Operations Over Regulatory and Privacy Concerns

Jakarta, The Gulf Observer: Indonesia’s Ministry of Communication and Digital has officially suspended the operating permit of the Worldcoin cryptocurrency project and its World ID system, following public complaints and potential breaches of electronic system regulations.

In a statement released on Sunday, Alexander Sabar, Director General for Digital Supervision, described the move as a preventive measure aimed at safeguarding public interest and mitigating digital risks.

“The suspension is our preventive measure to mitigate its risks to the public,” Sabar stated, adding that the ministry will summon local operators — PT Terang Bulan Abadi and PT Sandina Abadi Nusantara — to clarify their involvement in Worldcoin’s operations.

A preliminary investigation revealed regulatory noncompliance by PT Terang Bulan Abadi, which is not registered as an electronic system operator and lacks the legally required TDPSE operational permit. Moreover, the permit on file for Worldcoin services was found to be under the name of another entity, PT Sandina Abadi Nusantara.

“All digital service operators must be registered and accountable to the public,” Sabar emphasized, citing Government Regulation No. 71 of 2019 and Ministerial Regulation No. 10 of 2021. He described the use of another company’s identity to operate digital services as a serious legal violation.

The Worldcoin system, which involves scanning users’ irises in exchange for cryptocurrency tokens, has gained popularity in Indonesia but also sparked concerns over privacy and digital security.

The ministry’s decision is part of broader efforts to ensure the safety and integrity of Indonesia’s digital ecosystem. Sabar urged citizens to remain cautious and report suspicious digital services.

“We ask the people to contribute to keeping our digital space safe and trusted for the nation,” he concluded.