Can profits from stock price manipulation be recovered?

Question:

If a user uploads content containing defamation or copyright infringement on social media or digital platforms (such as YouTube, TikTok, or marketplaces), can the platform provider also be held legally liable?

(Dimas***, 0821983****)

Answer:

1. It is important to first understand the legal position of digital platform providers (platform providers) in the Indonesian legal system. In the context of Law Number 11 of 2008 concerning Electronic Information and Transactions (ITE Law), as amended by Law Number 19 of 2016, platform providers are positioned as “electronic system organizers” (PSE). This means they are responsible for providing, managing, and protecting electronic systems used by the public.
2. ESPs are not solely responsible for all user-uploaded content. Article 18 paragraph (1) of Government Regulation Number 71 of 2019 concerning the Implementation of Electronic Systems and Transactions (PP PSTE) stipulates that electronic system providers are required to provide a mechanism to follow up on public reports of unlawful content, but are not automatically responsible for every user upload prior to a report or discovery.
3. In legal practice, platform providers can be held liable if proven to have acted negligently, that is, if they are aware of problematic content but fail to take action to remove or block it within their authority. This principle is known as the “notice and takedown mechanism,” which is the global standard for regulating the responsibility of digital platforms.
4. Further provisions are regulated in Article 15 paragraph (6) of the Minister of Communication and Information Technology Regulation Number 5 of 2020 concerning Private Electronic System Providers, which requires platforms to provide a channel for reporting negative content and to follow up on it within a maximum of 24 hours. Failure to do so may result in administrative sanctions in the form of written warnings, fines, and even access termination (blocking).
5. From a criminal perspective, direct criminal responsibility remains with the user as the primary perpetrator, not the platform, unless it can be proven that the platform actively participated in the distribution or utilization of the illegal content. This aligns with the general principle of criminal law “no crime without fault” (nullum crimen sine culpa).
6. Therefore, digital platform providers are not automatically responsible for every piece of content uploaded by users, but they still have an administrative and ethical responsibility to ensure a safe, law-abiding digital ecosystem that does not harm the public.
7. Complaints against social media platforms containing hate speech or pornographic content indicate that the Ministry of Communication and Information Technology (Kominfo) tends to adopt an administrative approach in the form of warnings and temporary blocking, rather than direct criminal action against the platform. This emphasizes the government’s position as a compliance monitor, not a criminal prosecutor, for E-Commerce.
8. Platform responsibility will be further strengthened through the Personal Data Protection (PDP) Bill and derivative regulations of the ITE Law, which require algorithm transparency, automated content monitoring mechanisms, and regular compliance audits. Thus, the direction of Indonesia’s digital policy increasingly emphasizes shared responsibility between users, platforms, and the government in maintaining a healthy and safe cyberspace. 

This Legal Opinion is submitted based on the limited initial information we received. For further details, please make an appointment for a consultation with our lawyer.