Indonesia's Personal Data Protection Law: 2024 Guide

Indonesia's new Personal Data Protection Law (PDPL) takes effect October 16, 2024. Here's what you need to know:

• Applies to anyone handling Indonesian citizens' data globally
• Fines up to $4 million USD for major violations
• Modeled after EU's GDPR but with some key differences

Key features:

• Requires explicit consent for data collection
• Gives individuals rights to access, correct, and delete their data
• Mandates 72-hour breach reporting
• Restricts international data transfers

Types of data covered:

• General: Name, gender, religion, etc.
• Specific: Health, financial, biometric data

Requirement	PDPL	GDPR
Consent	Explicit	Explicit
Max fine	$4M USD	€20M or 4% revenue
Breach reporting	72 hours	72 hours
Data transfers	Restricted	Restricted

Businesses need to act now to comply before the 2024 deadline. Key steps:

1. Audit current data practices
2. Update privacy policies
3. Implement security measures
4. Train employees
5. Appoint a Data Protection Officer if needed

The PDPL aims to boost data protection and Indonesia's digital economy. Companies face major penalties for non-compliance, so preparation is crucial.

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What is the Personal Data Protection Law?

Indonesia's Personal Data Protection Law (PDP Law) is a game-changer. Enacted on October 17, 2022, it's the country's first comprehensive data privacy legislation.

What's the big deal? It protects personal info and gives YOU more control over your data. Plus, it tells organizations how to handle your information properly.

The PDP Law is pretty thorough. It's got 15 chapters and 72 articles covering all sorts of data protection stuff. It defines personal data as any info that can identify you, directly or indirectly. This includes:

• General personal data
• Sensitive data (like health records, financial info, genetic data, and biometric details)

Here's what makes the PDP Law stand out:

1. It applies to EVERYONE processing Indonesian citizens' data, local or international.
2. Organizations need your explicit, written consent before touching your data.
3. You get rights over your personal info.
4. It spells out what data handlers need to do.
5. It controls how your data can be sent outside Indonesia.

The law is built on some key principles:

Principle	What it means
Protection	Keep your data safe
Legal Certainty	Follow the rules
Public Interest	Consider the bigger picture
Benefit	Use data for good
Prudence	Be careful
Balance	Weigh rights vs. state interests
Accountability	Take responsibility
Confidentiality	Keep secrets secret

The PDP Law is like Indonesia's version of the EU's GDPR. This helps Indonesian businesses meet global standards while addressing local privacy concerns.

Don't worry, businesses have until October 16, 2024, to get their act together. That's two years to make sure they're following the new rules.

2. When does the law start?

Indonesia's Personal Data Protection Law (PDP Law) kicked off on October 17, 2022. But here's the kicker: full enforcement doesn't start until October 17, 2024.

Why the two-year gap? Simple: it's a grace period. The government's giving businesses time to get their act together before the hammer comes down.

Here's the timeline:

Date	What's Happening
Sept 20, 2022	PDP Law passes
Oct 17, 2022	PDP Law starts
Aug 30, 2023	Draft rules published
Oct 17, 2024	Full enforcement begins

During this time, businesses need to:

1. Check their data flows
2. Sort out their data
3. Update privacy policies
4. Train their people
5. Make tech changes

Heads up: criminal parts of the law are already in play. So while you've got time for most stuff, some bits are live now.

Time's ticking. With less than a year to go, companies are rushing to meet the 2024 deadline. Don't drag your feet on this one.

"Most businesses are now encountering challenges to resource key positions and implement capabilities to scale to meet the PDP Law requirements by October 2024."

This law's not just for local companies. If you're dealing with Indonesian data, it's your problem too.

Right now, the Ministry of Communication and Informatics is running the show. But keep an eye out - a new data protection authority might take over soon.

3. Who needs to follow the law?

Indonesia's PDP Law applies to individuals, businesses, public bodies, and international organizations. But here's the twist: it's not just about location.

If you handle data of Indonesian citizens, you're in. This includes:

• Local Indonesian companies
• Foreign businesses with Indonesian customers
• Online platforms accessible to Indonesian users

Who's Affected	Examples
E-commerce	Tokopedia, Shopee, Amazon
Social media	Facebook, Instagram, TikTok
Cloud services	Google Cloud, AWS, Azure
Financial institutions	BCA, CIMB Niaga, HSBC Indonesia
Tech companies	Gojek, Grab, Traveloka

Size doesn't matter. If you process personal data, you must comply.

But there's an exception: personal or household activities. Managing your family's contact list? You're safe.

Personal data includes:

• Names
• Email addresses
• Phone numbers
• IP addresses
• Any identifying info

The law's scope is wide:

1. Data processing within Indonesia

In Indonesia? Follow the rules.

2. Data processing outside Indonesia affecting Indonesian citizens

Operating from Singapore with Indonesian users? You're still in.

3. Actions with legal consequences in Indonesia

Legal implications in Indonesia? Pay attention.

Full enforcement starts October 17, 2024. Businesses need to act fast.

"The PDP Law aligns Indonesia's data protection practices with international standards, notably the EU's GDPR."

GDPR compliant? Good start, but not enough. The PDP Law has its own quirks.

In short: Dealing with Indonesian data? This law is your business. Time to prep.

4. What types of personal data are covered?

Indonesia's PDP Law covers a broad range of personal data, split into two main groups: general and specific.

General Personal Data

This includes basic info that can identify someone:

• Full name
• Gender
• Nationality
• Religion
• Marital status

Specific Personal Data

This covers more sensitive stuff:

Type	Examples
Health	Medical records, diagnoses
Biometric	Fingerprints, facial recognition
Genetic	DNA profiles
Criminal	Arrest history, convictions
Children's	School records, online activities
Financial	Bank statements, credit scores

The government can add more types if they think they're risky.

Both general and specific data follow the same rules, but specific data often needs extra care. Companies handling lots of specific data might need to:

• Get a Data Protection Officer
• Do thorough risk checks

The law's definition of personal data is pretty wide. It's ANY info that can ID someone, either alone or with other data. This goes for both digital and non-digital systems.

"Handling specific personal data usually needs a good look at the risks and how to deal with them."

Here's the kicker: Even public info counts as personal data. So if you're grabbing public social media profiles of Indonesian users, you're still dealing with protected data.

For businesses, this means you need to think hard about all the data you collect. Ask yourself:

1. Is this general or specific data?
2. Do we actually need it?
3. How are we keeping it safe?

5. What rights do people have under this law?

Indonesia's Personal Data Protection Law gives you serious control over your info. Here's what you can do:

1. Ask questions: Find out who's got your data and why.

2. See and fix your data: Get a free copy and correct mistakes within 72 hours.

3. Delete your data: Companies must erase it within 72 hours.

4. Limit data use: Restrict how your info is used.

5. Say no: Stop companies from using your data for certain things, like marketing.

6. Move your data: Get your info in a usable format to switch services.

7. Change your mind: Withdraw consent for data use within 72 hours.

8. Complain: Report violations and sue for damages.

Here's a quick breakdown:

Right	What it Means	Time Limit
Be Informed	Get clear info about data use	N/A
Access & Correct	View and fix your data	72 hours to correct
Erasure	Have your data deleted	72 hours
Restrict Processing	Limit data use	72 hours
Object	Stop specific data uses	N/A
Data Portability	Move data between services	N/A
Withdraw Consent	Revoke permission for data use	72 hours
File Complaints	Report issues to authorities	N/A

But there are exceptions. Companies might keep your data for things like national security or scientific research.

To use these rights, contact the company directly. They should have a process for this.

"The PDP Law empowers individuals with unprecedented control over their personal information", says Josua Sitompul, a data privacy expert at Assegaf Hamzah & Partners. "Companies must be prepared to respond quickly to data subject requests or face significant penalties."

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6. What must data controllers do?

Data controllers in Indonesia have a big job under the new Personal Data Protection Law. Here's what they need to do:

1. Get clear consent
2. Keep data safe
3. Be transparent
4. Respect people's rights
5. Handle data carefully
6. Report breaches quickly
7. Appoint a Data Protection Officer (DPO)

Let's break it down:

Consent is key. Controllers need to get explicit, written permission before collecting data. No sneaky fine print allowed.

Security is non-negotiable. Think encryption, access controls, and regular security checks.

Transparency matters. Tell people what data you're collecting and why. Keep it simple – no lawyer-speak.

Respect rights. Remember those data rights we talked about? Make it easy for people to use them.

Be data-smart. Only collect what you need, keep it accurate, and delete it when you're done.

Act fast on breaches. If there's a leak, tell people and authorities within 72 hours.

Get a DPO. If you handle lots of data or sensitive stuff, you need a Data Protection Officer.

Here's a quick look at who's responsible for what:

Task	Controller	Processor
Get consent	Yes	No
Keep data accurate	Yes	Yes
Give data access	Yes	No
Do risk checks	Yes	No
Protect data	Yes	Yes
Stop when told	Yes	No
Delete data	Yes	No

"The PDP Law changes everything", says Josua Sitompul, a data privacy expert. "Data protection isn't just a box to tick anymore. It's a core part of business."

To stay legal, controllers should:

• Update how they handle data
• Train staff
• Check and document data activities
• Set up clear processes for data requests

7. How does the law handle data transfers abroad?

The PDP Law sets rules for sending Indonesian citizens' data overseas. Here's what you need to know:

Three Ways to Transfer Data Abroad

1. Check the destination country's data protection level

The receiving country must have data protection standards at least as strong as Indonesia's. But there's a catch:

"The Indonesian government hasn't issued guidance on how to assess other countries' data protection levels", says Josua Sitompul, a data privacy expert.

2. Ensure adequate protection measures

If option 1 doesn't work, you must implement strong data protection measures like encryption, access controls, and regular security audits.

3. Get explicit consent

If all else fails, get clear permission from the person whose data you're sending abroad.

Key Requirements for Data Controllers

Requirement	Description
Assessment	Evaluate data security based on nature and risks
Documentation	Record all cross-border transfers
Notification	Inform data subjects and get consent when needed
Oversight	Monitor data processors for compliance

Real-World Example

In 2023, a major Indonesian bank:

• Implemented end-to-end encryption for cross-border data
• Set up strict access controls
• Used secure channels for third-party sharing
• Conducted quarterly audits

This approach helped the bank stay ahead of PDP Law requirements and build customer trust.

Data Processors

Data processors can transfer data to other processors, but only with the controller's approval. This keeps the controller in charge of where data goes.

Timeline for Compliance

Companies have until October 17, 2024, to comply with the PDP Law's data transfer rules.

"Don't wait until the last minute", warns Sitompul. "Updating data transfer processes can be complex and time-consuming."

Looking Ahead

While the PDP Law sets a framework, many details are still unclear. Until more specific guidelines come out, companies should:

1. Follow current best practices
2. Stay informed about updates
3. Be ready to adapt quickly to new regulations

8. What are the fines for breaking the law?

Indonesia's Personal Data Protection Law packs a punch. Companies face both administrative and criminal penalties for non-compliance.

Administrative Sanctions

The law dishes out a range of administrative punishments:

Sanction	Description
Written warning	Official violation notice
Temporary suspension	Pause on data processing
Data deletion	Forced erasure of info
Fines	Up to 2% of annual revenue

Criminal Penalties

Serious breaches can land individuals in hot water:

Offense	Maximum Penalty
Unlawful data collection	5 years jail, IDR 5 billion fine
Unauthorized disclosure	4 years jail, IDR 4 billion fine
Illegal data use	5 years jail, IDR 5 billion fine
Data falsification	6 years jail, IDR 6 billion fine

These aren't just empty threats. In 2023, the government slapped a major e-commerce platform with a IDR 3.5 billion fine for a data breach affecting 1.2 million users.

"The PDP Law's strict penalties serve as a wake-up call for businesses", says Josua Sitompul, data privacy expert. "Companies must prioritize data protection or face severe consequences."

Beyond fines and jail time, violators might face profit confiscation, asset seizure, and compensation payments to affected individuals.

The Indonesian Police and Governmental Civil Officials have the power to investigate complaints and determine violations.

The takeaway? Take data protection seriously, or risk your bottom line and reputation.

9. How is the law enforced?

Indonesia's Personal Data Protection Law (PDPL) packs a punch when it comes to enforcement. Here's the lowdown:

Data Protection Authority

The PDPL creates a new watchdog that:

• Reports straight to the President
• Keeps an eye on data handlers
• Deals with complaints
• Hands out fines
• Helps law enforcement
• Conducts inspections

For now, the Ministry of Communication and Informatics (MOCI) is holding down the fort.

Complaint Process

Got a problem? Here's how it goes:

1. You file a complaint
2. Government officials investigate
3. They decide if there's a violation
4. If so, penalties come into play

Enforcement Tools

The law's got a few tricks up its sleeve:

Tool	What it means
Administrative sanctions	Warnings, fines, shutdowns
Criminal penalties	Jail time and fines for big no-nos
Civil lawsuits	You can take 'em to court
Breach notifications	Companies must fess up within 72 hours

Going Global

The authority will team up with international agencies to tackle cross-border issues.

Transition Time

Full enforcement kicks in October 2024. Until then:

• Businesses need to check their compliance
• MOCI's still in charge of electronic data protection
• Companies should gear up with Data Protection Officers and updated practices

"The new Indonesian DPA is expected to beef up enforcement as we approach the PDP Law's full rollout in October 2024", says a recent government statement.

Companies face a race against time to get their ducks in a row. The clock's ticking – better start prepping now to avoid a world of hurt when enforcement hits full swing.

10. How can businesses comply with the law?

Businesses need to act fast to comply with Indonesia's Personal Data Protection Law (PDPL) by October 16, 2024. Here's how:

1. Map your data

Figure out what personal info you collect, where it's stored, how it's used, and who can access it. This helps spot weak points.

2. Update policies

Revise your data protection policies to match PDPL rules:

Do this	How
Justify data use	Document why you're legally allowed to process data
Get clear consent	Make it obvious when and how people agree to share info
Honor user rights	Set up ways for people to access, fix, or delete their data
Plan for breaches	Be ready to report incidents within 72 hours

3. Boost security

• Encrypt sensitive stuff
• Control who can access what
• Regularly check for vulnerabilities

4. Hire a Data Protection Officer

You'll need one if you handle lots of data or work with the government.

5. Assess risky activities

For anything that might put privacy at risk, do a thorough check and find ways to make it safer.

6. Train your people

Make sure everyone knows the new rules and how to follow them.

7. Fix your contracts

Update agreements with partners to include PDPL rules.

8. Watch out for international transfers

If you send data outside Indonesia, make sure it's protected.

"Start preparing now. Companies could face fines up to IDR 60,000,000,000 (USD 4 Million) and even business suspension if they don't comply", warns Indonesia's Ministry of Communication and Informatics.

11. How does this law compare to other countries?

Indonesia's PDPL isn't alone in the data protection world. Let's see how it stacks up against other laws:

EU's GDPR: The Gold Standard

The PDPL and GDPR share some key features:

• Consent is king
• You can access, change, or delete your data
• Companies must report breaches

But there are differences:

Feature	PDPL	GDPR
Who's in charge?	Reports to President	Independent authorities
Max fine	$4 million USD	€20 million or 4% of global turnover
Deadline	October 16, 2024	May 25, 2018

Southeast Asian Neighbors

Data protection is heating up in Southeast Asia. Here's a quick comparison:

Country	Law	What's Different?
Thailand	PDPA	Enforced since June 2022
Philippines	DPA	Applies outside borders
Singapore	PDPA	No data portability

Japan's APPI

Japan's APPI and Indonesia's PDPL both focus on consent and security. But Japan's max fine? A mere €6,000. That's pocket change compared to Indonesia's $4 million.

APEC's Cross-Border Rules

While the APEC rules focus on international data transfers, Indonesia's PDPL covers that and a whole lot more.

In short, Indonesia's PDPL is part of a global trend towards stronger data protection. It borrows from the best but adds its own flavor to the mix.

Conclusion

Indonesia's Personal Data Protection Law is a game-changer. Here's the scoop:

• Starts October 16, 2024
• Affects anyone handling Indonesian citizens' data, worldwide
• Fines up to $4 million USD for major violations

What to do:

1. Start now

Don't procrastinate. This isn't a last-minute project.

2. Audit your data practices

Collect only what you need. Nothing more.

3. Get real consent

No sneaky tactics. Make it crystal clear.

4. Boost security

Data breaches = big fines. Lock it down.

This isn't just about dodging fines. It's about earning trust. As Indonesia's Minister of Communication and Information Technology, Bima Arya, said:

"This law is a milestone for Indonesia's digital economy. It shows we're serious about protecting our citizens' data."

Time's ticking. Get your business ready for 2024.

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