Worldcoin's Identity Tech Faces Scrutiny in Indonesia Amid Privacy Concerns and Regulatory Roadblocks
Main Takeaways
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JAKARTA, investortrust.id – A global identity verification project backed by artificial intelligence and blockchain has stirred debate in Indonesia after its rapid and controversial entry into the country. The World app, developed by U.S.-based Tools for Humanity, co-founded by OpenAI CEO Sam Altman, has faced backlash and temporary suspension over legal and data privacy concerns.
The core of the Worldcoin initiative lies in World ID, a digital identity system designed to verify human uniqueness without revealing personal information. To achieve this, users undergo an iris scan using a device called the Orb—an advanced biometric camera that converts iris patterns into randomized numerical codes using cryptographic technology.
World's rollout in Indonesia, which began earlier this year, gained attention after viral videos emerged from Bekasi, West Java, depicting individuals receiving cryptocurrency tokens after undergoing eye scans. This led to public speculation that users were being paid to "sell their data," triggering widespread concern over privacy risks.
Indonesia Moves to Suspend World ID Services
On Sunday, May 4, 2025, the Indonesian Ministry of Communication and Digital Affairs, known locally as Kemenkomdigi, suspended access to World ID services nationwide. Alexander Sabar, Director General of Digital Space Supervision, said the move was a preventive measure to protect citizens from potential misuse of biometric data.
Preliminary findings showed that PT Terang Bulan Abadi, the local operator for Worldcoin, had not registered as a legitimate Electronic System Provider, a mandatory requirement under Indonesian law. Instead, it reportedly used registration credentials from another company, PT Sandina Abadi Nusantara—an act the ministry deemed a serious violation.
"Noncompliance with electronic system registration and the use of another legal entity’s credentials constitutes a grave offense," Alexander stated, citing Government Regulation No. 71 of 2019 and Ministry Regulation No. 10 of 2021.
In response, Tools for Humanity voluntarily halted verification services and expressed willingness to cooperate with the authorities. “We are engaging with relevant officials to clarify the current situation and work toward a constructive resolution,” the company said on Monday, May 5, 2025.
Company Denies Misconduct and Emphasizes Data Privacy
When contacted by Investortrust.id, Tools for Humanity firmly denied allegations of data exploitation or inducement through token giveaways. “World ID does not store personal or biometric data. Our technology is designed to confirm the uniqueness of individuals without retaining any private information,” the company said in a written statement on Tuesday.
The company clarified that the Orb device generates a secure numerical representation of the iris, which is then anonymized and stored by third-party custodians. Images and iris codes are permanently deleted from the system after being transmitted to the user’s device, ensuring users retain full control of their data.
They also denied accusations of offering financial incentives in exchange for biometric scans. “World does not compensate users with Worldcoin tokens for undergoing verification. Claiming tokens is entirely optional,” they said, adding that tokens are provided only as an incentive to explore apps and services built within the World ecosystem.
Ongoing Investigations and Future Prospects
Kemenkomdigi announced plans to summon Worldcoin’s Indonesian representatives and PT Terang Bulan Abadi for official clarification. Meanwhile, Tools for Humanity stated that it had engaged in months-long discussions with Indonesian authorities prior to launching and remains committed to aligning with local regulations.
While the timeline for reactivating World ID services in Indonesia remains unclear, Tools for Humanity reiterated its long-term commitment to the country. “We hope to resume services soon and continue our mission of empowering Indonesia in the global digital economy while prioritizing security, privacy, and innovation,” the company concluded.