Benefits of Electronic Certificates

An electronic certificate is a type of digital certificate that contains a digital signature, so you no longer need to provide a wet signature on a document. This certificate is officially issued by the DJP or Electronic Certification Organizer (PSE).

Those of you who work in the finance and tax industry will certainly be familiar with the terms certificates and electronic transactions. The existence of digital services as a form of technological progress is able to guarantee data integrity and security. Furthermore, see the review below to find out the types and benefits of digital certificates. 

What is an Electronic Certificate?

Basically, an electronic certificate is a document containing identity and digital signature given to Taxable Entrepreneurs (PKP). This document serves to demonstrate electronic financial service user authentication. 

The legal basis that oversees the implementation of electronic certification is contained in Government Regulation (PP) Number 71 of 2019 concerning Implementation of Electronic Systems and Transactions. There is also Ministerial Regulation (PERMEN) for Communication and Information Technology Number 11 of 2018 concerning the Implementation of Electronic Certification. 

Electronic certificates generally have two characteristics. First, being able to guarantee the integrity of the data by paying attention to whether or not there are changes in a document that has been signed. 

Second, this certificate is anti-repudiation, that is, it can deny the existence of falsification of data integrity by directly proving the time of signing.

Types of Electronic Certificates

It turns out that digital certificates have several types. Here are several types of certificates that you need to understand:

1. Identity Certificate

The first type of digital certificate, namely an identity certificate. This type usually contains information regarding name, address, identity number, and other important information. In other words, identity certificates can be used to identify users in a system.

2. SSL/TLS certificate

SSL/TLS certificates are useful for ensuring the security of connections between clients and servers on the internet. Having this certificate can help you ensure that the connection remains secure and encrypted, so that data is not manipulated by irresponsible parties.

3. Digital Signature Certificate

One of the most common types of electronic certificates is a digital signature certificate. This digital certificate is used to add digital signatures to electronic documents. You can use this type of certificate to ensure that the signature is really from the certificate owner.

4. Server Certificate

The next type of digital certificate is a server certificate. As the name suggests, this type of certificate is usually used by servers to ensure that connections are always secure and encrypted with clients on the internet.

5. Code Certificate

Code certificates are usually used to secure code and applications distributed over the internet network. You need to have a code certificate to ensure there is no manipulation or code change from irresponsible parties.

Benefits of Electronic Certificates

Some of the benefits and advantages you get when using a digital certificate include:

1. Guarantee of the Authenticity of Document Information

The encryption system for documents with digital certificates guarantees valid information. Because, you can find out whether there are even the slightest changes to electronic documents after they are digitally signed. 

So, the information in the electronic certificate document cannot be tampered with or modified carelessly. That way, this can minimize falsification of information.

2. Digital Identity Verification

One of the activities in administering electronic certification is verifying the identity of prospective digital certificate users. This digital identity verification process involves several data such as telephone number, email address, KTP, and facial recognition .

The use of multi-layered verification data is useful for ensuring that the identity information to be registered is truly valid. So, you can avoid the risk of fraud with a fake identity. 

3. Valid Legal Guarantee

Some digital signature services usually offer two main services, namely digital signatures without certificates and digital signatures with certificates. Unfortunately, a signature without a certificate cannot replace the function of a wet signature on a document. 

So, digital signatures with certificates can be a safe option for verifying user identity. Apart from that, electronic certificates are also equipped with high-level encryption, making them more secure. 

Not only that, digital certificates even have valid legal force and consequences and are equivalent to wet signatures.

4. Easy Document Tracking

Another benefit of digital certificates is that it makes it easier for you to track important documents. You can monitor and track documents containing digital signatures quickly. This is because digital signatures have a unique code that you can match to the original code on the document sent to the other party.

6. Maintaining Business Reputation

All entrepreneurs certainly want to maintain a good business reputation in front of everyone, especially customers. Using digital certificates will help you to maintain high security and trust in the transaction process. 

This can certainly increase customer satisfaction, thereby building a better business reputation. The presence of digital certificates today can even provide significant added value to your business reputation.

The Role of E-KYC in Digital Certificates

Do you know the term KYC or Know Your Consumer? The application of e-KYC in electronic certification is not only limited to changing manual service practices to digital ones. But it also includes how to fulfill service accuracy digitally. Because KYC is a system that is able to detect whether digital data is genuine or not.

Therefore, KYC principles are really needed by the financial industry to verify customer identity, ensure data requirements, avoid potential money laundering, and avoid terrorist financing. The existence of an electronic signature as a digital identity also supports the implementation of e-KYC .

There are two factors that support the accuracy of digital identity, namely the What Are You factor containing biometric data, fingerprint and voice recognition and What You Know in the form of PIN , password and ID Card Number