The enactment of Indonesia Data Privacy Law, formally known as UU No. 27 of 2022 on Personal Data Protection (PDP Law), marks an important turning point in the country’s digital transformation.
This law is especially critical for foreign businesses operating or hiring talent in Indonesia. Its implementation reflects a global trend towards tighter data governance, much like the European Union’s General Data Protection Regulation (GDPR).
The Indonesian PDP Law presents both familiar and unique requirements for businesses that are already familiar with GDPR.
Understanding Indonesia’s Personal Data Protection Law
Enacted in October 2022 and fully enforced since 17 October 2024, the Data Privacy Law in Indonesia is the country’s first comprehensive regulation on personal data (source).
It replaces fragmented sectoral laws and creates a unified standard that all data processors, including foreign companies, must follow.
Key definitions under this law include:
- Personal data: any information that can directly or indirectly identify an individual.
- Specific personal data: sensitive data such as health, biometrics, sexual orientation, and financial records.
- Data controllers and processors: those who collect or process data are now legally responsible for ensuring its security.
The law also introduces a dedicated Personal Data Protection Agency (PDP Agency), set to become operational by 2026, to supervise and enforce data protection compliance.
Comparing UU PDP with the EU’s GDPR
The Indonesia Data Privacy Law shares many principles with the European Union’s General Data Protection Regulation (GDPR), offering a sense of familiarity for global companies already operating in EU jurisdictions.
However, the UU PDP introduces some distinct requirements shaped by local legal and administrative frameworks.
Below, we highlight several key areas where the two laws align or differ, helping businesses understand how to adjust their privacy strategies in Indonesia:
-
Scope and Applicability
The Data Privacy Law in Indonesia applies to all personal data processed within the territory of Indonesia or affecting Indonesian data subjects. This includes foreign entities that offer services or monitor behaviour in Indonesia.
The GDPR also has an extraterritorial scope, applying to any business that processes personal data of EU residents, regardless of the company’s physical location.
-
Data Subject Rights
Both laws grant individuals several rights over their personal data. Under UU PDP, data subjects have rights to access, correct, delete, and withdraw consent.
GDPR provides similar rights, but also includes the right to data portability and the right to object to automated decision-making and profiling.
-
Enforcement and Penalties
UU PDP allows for administrative fines of up to 2% of annual revenue, and criminal penalties including imprisonment and substantial fines for serious violations (source).
The GDPR imposes heavy fines for violations up to €20 million or 4% of global annual revenue, whichever is higher. Data subjects also have the right to seek compensation for damages (source).
-
Regulatory Authority
GDPR is already enforced by independent national data protection authorities within EU member states.
In contrast, Indonesia is in the process of establishing the PDP Agency by 2026, which will centralise data protection enforcement and coordination.
Practical Guide to Compliant Business Practices under UU PDP
Now that we understand the legal context and how Indonesia Data Privacy Law compares with global standards like GDPR, it’s time to explore what businesses must actually do:
1. Obtain Valid Consent
Most importantly, consent must be clear, informed, and freely given. No pre-ticked boxes. Companies must document how, when, and why data was collected transparently.
2. Implement Data Protection Measures
Next, companies must deploy both organisational and technical safeguards to reflect international expectations and mirror GDPR’s emphasis on accountability.
The measures may include role-based access controls, regular data audits, and encrypted communication channels.
Appointment of a Data Protection Officer (DPO) if processing involves large volumes or specific personal data is also needed for the processing of large-scale or sensitive data.
3. Fulfill Data Subject Rights
Individuals can request clarification on how their data is used, corrections to their data, access to or deletion of their data, and cancellation of processing consent
Such requests must be honoured promptly by companies within the time required (e.g., within 72 hours). Thus, a well-documented process is essential to avoid penalties.
4. Manage Cross-Border Data Transfers
Data transfers outside Indonesia require adequate protection laws in the destination country. Contractual safeguards like Standard Contractual Clauses (SCCs) are also needed.
Moreover, it requires explicit user consent if the first two options are not viable. This ensures Indonesian data subjects enjoy the same protection globally.
5. Notify Data Breaches Promptly
Any breach of Data Privacy Law must be reported to the data authority and affected individuals, ideally within 72 hours, similar to GDPR. Delays can trigger sanctions and reputational damage.
6. Maintain Documentation and Training
As mentioned in point 3, a well-documented process is needed. Companies must keep a Record of Processing Activities (ROPA) detailing points such as types of data processed, legal basis, data subjects involved, and retention periods.
Meanwhile, periodic employee training ensures company-wide understanding and compliance with the law.
7. Prepare for Enforcement and Sanctions
In the Indonesian PDP Law, failure to comply can result in:
- Administrative fines up to 2% of annual turnover
- Temporary bans on data processing
- Criminal penalties, including imprisonment for severe violations
Legal entities can even face up to 10 times the original fine in extreme cases. For example, falsifying personal data may result in 6 years of prison or fines up to IDR 60 billion
Simplify Your Workforce Compliance with Abhitech’s EOR Services
Dealing with the Indonesian PDP Law sure can be overwhelming, especially for foreign entities unfamiliar with the local landscape.
Ready to build a compliant and secure workforce in Indonesia? Contact us and start your journey with Abhitech!
As a trusted provider of Employer of Record (EOR) services, we ensure your workforce is managed in full compliance with Data Privacy Law in Indonesia.
Learn how Abhitech can support your expansion and HR operations in Indonesia by exploring our EOR services, or explore more HR-related articles from an Indonesian perspective in our Blog, such as our article on Indonesian Labor Law!
