Data Protection in Indonesia

Data protection laws in Indonesia

Specific regulations

Indonesia has adopted an overarching framework for personal data protection through the enactment of Law No. 27 of 2022 concerning Personal Data Protection ("PDP Law") since 17 October 2022. Data controllers, data processors and relevant parties that process personal data were given a two (2) year transition period following the enactment of the PDP Law, thus up to 17 October 2024 to conform with the PDP Law. As the transition period ended on 17 October 2024, all such parties are now required to fully comply with all the provisions of the PDP Law and any non-compliance thereto may be enforced.

The PDP Law is closely aligned with international data privacy standards, and is largely modelled on the European Union’s General Data Protection Regulation ("GDPR").

Before the enactment of the PDP Law, there was no comprehensive law on privacy / personal data protection in Indonesia. Instead, separate legislations which were embedded in and / or spread out in a number of sector specific (e.g. financial sector), matter specific (e.g. e-commerce), and / or nature specific (e.g. personal data processed in / through electronic systems) regulations regulate the general aspects of the protection of privacy / personal data were relied upon. Examples include the Law No. 11 of 2008 regarding Electronic Information and Transactions ("EIT Law") as amended by Law No. 19 of 2016 regarding the Amendment of EIT Law and Law No. 1 of 2024 regarding the Second Amendment of EIT Law, Government Regulation No. 71 of 2019 regarding the Operation of Electronic Systems and Transactions ("Reg. 71") and its implementing regulations such as the Minister of Communications and Informatics Regulation No. 5 of 2020 regarding the Private Sector Electronic System Operator, as lastly amended by Minister of Communications and Informatics Regulation No. 10 of 2021 ("MOCI Reg. 5/2020"), and Minister of Communication & Informatics Regulation No. 20 of 2016 regarding the Protection of Personal Data in an Electronic System ("MOCI Reg. 20/2016"). These existing rules on privacy / personal data protection in the framework of processing personal data through electronic systems will be referred to as “General Data Protection Regulations”.

Other than provisions relating to data protection under General Data Protection Regulations, examples of sector specific regulations which also include provisions relating to data protection include the following:

Telecommunications sector

Article 40 of Law No. 36 of 1999 regarding Telecommunications ("Telecommunications Law") as partially amended by Law No. 11 of 2020 on Job Creation which was later revoked and replaced by Law No. 6 of 2023 on the Enactment into Law of Government Regulation in Lieu of Law No. 2 of 2022 on Job Creation (generally referred to as the "Omnibus Law")  provides that any person is prohibited from any kind of tapping of information transmitted through any kind of telecommunications network. Article 42 paragraph (1) of the Telecommunications Law stipulates that any telecommunications services operator has to keep confidential any information transmitted or received by a telecommunications service subscriber through telecommunications networks or telecommunications services provided by the relevant operator.1

Public information sector

Article 6 paragraph (3) point c of Law No. 14 of 2008 regarding Disclosure of Public Information ("Public Information Law")2 provides that information relating to personal rights may not be disclosed by public bodies. Furthermore, Article 17 point (h) of the Public Information Law, together with other laws, prohibits the disclosure of private information of any person, particularly that which concerns family history; medical and psychological history; financial information (including assets, earnings and bank records), evaluation records concerning a person's capability / recommendation / intellectual, and / or formal and informal education records.

Banking and capital market sectors

Data privacy in the banking sector is regulated under Law No. 7 of 1992 as amended by Law No. 10 of 1998 on Banking ("Banking Law") and as partially amended by the Omnibus Law and Law No. 4 of 2023 on the Development and Strengthening  of the Financial Sector, including the implementing regulations. As regards the capital market sector, it is generally regulated under Law No. 8 of 1995 on Capital Market ("Capital Market Law”) which was partially revoked by Government Regulation In Lieu of Law No. 1 of 2017 on Access to Financial Information for Tax Purposes and amended by Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector, including the implementing regulations3. The regulations mentioned above apply to both individuals and corporate data4.

Principally, commercial banks' customer data transfer (by way of establishing a data center or a data processing outside Indonesia territory) necessitates prior approval being obtained from the Indonesian Financial Services Authority ("FSA")5.

Generally, those separate sector specific legislations will principally still be valid so long as they do not contradict the PDP Law. It is anticipated that further implementing regulations will be drawn up and issued (which may or may not revoke existing legislation on the protection of privacy / personal data), and a separate institution / agency will be formed to specifically handle and undertake the organization of the protection of privacy / personal data in accordance with the PDP Law ("PDP Agency"), which is targeted to be formed and operating by 2026 based on the latest news.

In the meantime, the first draft of Government Regulation on the Implementation of the PDP Law ("Draft Implementing Regulation to PDP Law") was circulated for public comments from August 31st, 2023 until September 25th, 2023 and has been discussed with relevant stakeholders during 2024. The said Draft Implementing Regulation to PDP Law is currently in the "harmonization stage", after which it would proceed to the finalisation stage before finally being enacted. The status can be monitored through a dedicated website that is accessible at pdp.id.

Footnotes

1. Please note that the Omnibus Law only partially amended the Telecommunications Law, thus Articles 40 and 42 of the Telecommunications Law are still valid and fully enforced.

2. Please note that Law No. 14 of 2008 regarding Disclosure of Public Information has been partially amended with Constitutional Court Judgement Number 77 / PUU-XIV / 2016, however Articles 6 and 17 of Law No. 14 of 2008 regarding Disclosure of Public Information have not been amended.

3. Please note that Law No.4 of 2023 regarding The Development and Strengthening of The Financial Sector has been partially amended by the judgments of the Constitutional Court Number 59/PUU-XXI/2023 and Number 85/PUU-XXII/2024. However, these amendments do not relate to provisions on data protection.

4. Please note that the Omnibus Law does not amend the Articles that governs data protection in Banking Law.

5. Please note that Article 35 paragraph (3) of the Financial Services Authority Regulation No. 11/POJK.03/2022 on the Organization of Information Technology by Commercial Banks necessitates commercial banks to obtain prior approval from the FSA in the event such commercial banks intend to establish a data center or a data processing outside Indonesia territory.

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