Indonesia Suspends Worldcoin Operations Over Regulatory Breaches

Indonesia has taken decisive action to suspend the operations of Worldcoin, a digital identity project co-founded by Sam Altman, the CEO of OpenAI. The Ministry of Communications and Digital Technology issued the suspension on May 4th, 2025, citing suspicious activities and breaches of regulatory procedures. This move comes as a result of public reports indicating that Worldcoin and its associated World ID service did not comply with national regulations for operations.

The ministry has frozen the Electronic System Organizer Registration Certificates for both services and has summoned two local companies, PT. Terang Bulan Abadi and PT. Sandina Abadi Nusantara, to provide clarification on the reported violations. The preventive action aims to protect public safety from the unknown risks associated with unregulated digital services. Alexander Sabar, Director General of Digital Space Supervision, emphasized that the ministry's actions were based on public reports and that the companies involved had failed to obtain the necessary official status and credentials.

Preliminary findings revealed that PT. Terang Bulan Abadi had not obtained official status as an Electronic System Organizer, and the activities run by PT. Sandina Abadi Nusantara raised significant concerns regarding transparency and accountability. Mr. Sabar highlighted the registration requirements for private digital service providers, which are outlined in Government Regulation Number 71 of 2019 and the Regulation of the Minister of Communication and Information Number 10 of 2021. He stressed that operating online services with another legal entity’s credentials violates national digital regulations.

The Ministry reiterated its commitment to protecting the digital ecosystem through fair and firm oversight. The meeting underscored the importance of active citizen involvement in shaping the security of the digital space and building trust within this environment. The public is encouraged to report unusual activities to strengthen national digital security programs.

In response to the government's intervention, Tools for Humanity, the company behind Worldcoin, voluntarily halted its operations in Indonesia. The company is seeking official confirmation regarding the necessary permits and licensing standards of the country. Damien Kieran, the Chief Legal and Privacy Officer of Tools for Humanity, explained that the project generates unique digital identities for users via iris-scanning technology, with data becoming anonymous immediately after processing and users having complete control over their personal details stored on their devices.

Worldcoin has been engaging with Indonesian authorities since October 2024 but has yet to obtain the necessary operational approval. The suspension in Indonesia mirrors regulatory challenges faced by the project in other nations. For instance, Worldcoin faces restrictions in Brazil regarding biometric data compensation and was banned in South Korea with an eight-hundred-thousand-dollar fine due to data protection rules. The increasing scrutiny from global regulatory authorities raises doubts about the project's ability to expand internationally. The outcome of the Indonesian investigation will be crucial in determining Worldcoin's future global expansion plans.