With the rise in internet usage and the increasing number of digital platforms in Indonesia, data protection has become a critical concern. In response, the Indonesian government has enacted a more robust and comprehensive law to safeguard individuals' personal data. The new framework, known as Law Number 27 of 2022 on Personal Data Protection (PDP Law), addresses the protection of personal data across various sectors and establishes clear guidelines for data controllers, processors, and users.

Previous Regulatory Framework

Prior to the enactment of the PDP Law, personal data protection in Indonesia was governed by a range of sectoral regulations that focused on specific industries or issues. Some of the key laws and regulations were:

1. Law No. 7 of 1992 on Banking, amended by Law No. 10 of 1998.

2. Law No. 23 of 2006 on Population Administration, amended by Law No. 24 of 2013.

3. Law No. 11 of 2008 on Electronic Information and Transactions, amended by Law No. 19 of 2016.

4. Law No. 36 of 2009 on Health.

5. Minister of Communication and Informatics Regulation No. 20 of 2016 on Personal Data Protection in Electronic Systems ("Regulation No. 20/2016").

6. Government Regulation No. 71 of 2019 on the Administration of Electronic Transactions and Systems ("Regulation No. 71/2019").

7. Minister of Communication and Informatics Regulation No. 5 of 2020 on Private Electronic System Providers, as amended by MCI Regulation No. 10 of 2021.

   
   

While these regulations addressed data protection within specific sectors, the Indonesian government recognized that they lacked a comprehensive and unified approach to data protection. This gap prompted the creation of the PDP Law, which aims to provide a holistic legal framework for safeguarding personal data in the digital age.

Key Aspects of the PDP Law

The PDP Law introduces several important concepts and classifications that enhance the protection of personal data. Some of the key points include:

1. Classification of Personal Data

   Personal data is divided into general personal data and specific personal data. This classification helps differentiate the level of protection required for different types of data and ensures that data processing is handled with greater care, especially for sensitive information.

   
   

2. Data Owner’s Rights

   The PDP Law provides individuals with fundamental rights regarding their personal data. These rights include:

   • Right to clear information about how personal data is being processed, including the legal basis, purpose, and accountability.

   • Right to access, correct, and update personal data held by third parties.

   • Right to delete or destroy personal data, as well as withdraw consent for data processing.

   • Right to demand compensation for any violations of data protection provisions.

     
     

3. Use of Personal Data

   The PDP Law regulates the use of personal data, emphasizing transparency, purpose limitation, and data subject consent. Articles 17 to 22 specifically outline the principles for processing data, including its intended use, ethics, and protection for data owners.

   
   

4. Obligations of Controllers and Processors

   Under the PDP Law, both Controllers (those who determine the purpose of data processing) and Processors (those who process data on behalf of the Controller) are required to:

   • Clearly inform individuals about the legal basis for processing their personal data, the purpose of processing, and the types of data involved.

   • Obtain valid consent from data owners, ensuring that their personal data is processed in accordance with the stated purposes and relevant laws.

   • Comply with comprehensive regulations regarding data transfer, data breach notification, and sanctions for non-compliance.

     
     

5. Dispute Resolution

   The PDP Law provides avenues for dispute resolution in case of violations. Disputes can be resolved through:

   • Arbitration.

   • Litigation through Indonesian courts.

   • Other alternative dispute resolution mechanisms. This is regulated under Article 56 of the PDP Law.

     
     

6. International Cooperation

   The PDP Law also acknowledges the importance of international cooperation in protecting personal data. It provides for collaboration with other countries and international organizations, ensuring that data protection standards align with global norms and legal frameworks.

   
   

7. Establishment of a Personal Data Protection Institution

   A significant feature of the PDP Law is the creation of a dedicated Personal Data Protection Institution. This institution, directly governed by the Indonesian President, will be responsible for:

   • Formulating and implementing policies and strategies related to data protection.

   • Conducting supervision and monitoring of personal data processing activities.

   • Facilitating dispute resolution outside the courts.

   • Enforcing sanctions in cases of non-compliance with the PDP Law.

     
     

Conclusion

The enactment of the PDP Law represents a major step forward in Indonesia’s efforts to protect personal data. Unlike previous sectoral regulations, the PDP Law offers a comprehensive and unified framework that covers all aspects of personal data protection. It strengthens the rights of individuals by providing clear guidelines for how their personal data should be handled, ensuring transparency, accountability, and data security.

For businesses and organizations, complying with the PDP Law is crucial to avoid severe penalties, including fines and sanctions. By aligning with the law’s provisions, companies can build trust with customers, protect their reputation, and ensure long-term legal compliance.

In summary, the PDP Law represents a significant milestone in Indonesia’s legal landscape, reinforcing the country’s commitment to data protection while fostering international cooperation and promoting a responsible digital economy.