Logo Kusuma & Partners Law Firm
Home / Article / Navigating Indonesia’s Personal Data Protection Law: Compliance Essentials for Businesses

Navigating Indonesia’s Personal Data Protection Law: Compliance Essentials for Businesses

Share article:

Table Of Contents

Have you ever wondered what your business needs to do to legally collect, store, and use personal data in Indonesia? With the full enforcement of Indonesia’s Personal Data Protection Law (PDP Law) taking effect in October 2024, businesses operating in Indonesia—or those processing the data of Indonesian citizens—must understand and comply with this landmark regulation. The law not only establishes individuals’ data rights but also places clear and enforceable obligations on businesses. This article offers a deep dive into Indonesia’s PDP Law, explores compliance essentials, and highlights practical steps businesses must take to remain lawful and trustworthy in a data-driven economy.

Key Takeaways

  • Indonesia’s PDP Law was enacted in 2022 and is fully effective by October 2024.
  • It provides comprehensive rules on personal data collection, processing, and protection.
  • Businesses must obtain explicit consent and ensure transparency.
  • Non-compliance may lead to administrative, civil, or criminal sanctions.
  • Cross-border data transfers are permitted with safeguards.
  • Appointing a Data Protection Officer (DPO) is recommended for compliance.
  • Companies must establish privacy policies and standard operating procedures (SOPs).
  • Foreign businesses handling Indonesian data subjects must comply.
  • Regular audits and staff training are essential for legal compliance.
  • Kusuma & Partners offers tailored legal support for PDP compliance.

Understanding the Foundation of Indonesia’s Personal Data Protection Law

Indonesia’s PDP Law, enacted as Law No. 27 of 2022, is a transformative step in national digital governance. Modelled after the European Union’s GDPR but adapted to local values and legal principles, the law aims to:

  • Protect individual privacy.
  • Ensure lawful, fair, and transparent processing of personal data.
  • Encourage data governance best practices.
  • Strengthen national data sovereignty.

The law took effect in October 2022, with a two-year transition period. By October 2024, all organizations handling personal data must comply. This includes both digital and manual data processing.

Key Definitions under the PDP Law

Understanding the legal terminology of the PDP Law is critical:

  • Personal Data: Any data, whether alone or combined, that identifies or can identify an individual directly or indirectly.
  • Data Subject: An individual whose personal data is being processed.
  • Data Controller: A person or organization that determines the purpose and means of processing.
  • Data Processor: A person or organization that processes data on behalf of the controller.

Understanding these definitions is vital, as each role carries specific legal responsibilities under Indonesia’s Personal Data Protection Law.

Scope and Applicability of the PDP Law

The PDP Law has both territorial and extraterritorial reach. It applies to:

  • All domestic businesses and public institutions collecting or processing personal data.
  • Foreign entities, including digital service providers (e.g., apps, websites), that target or handle the data of Indonesian citizens.

Even if your servers are located outside Indonesia, if you serve Indonesian users, you are subject to this law.

Rights of Data Subjects:

The PDP Law gives Indonesian citizens strong rights over their personal data, aiming to ensure autonomy and control.

a) Right to Access and Correction

    Data subjects may request:

    • Details on what personal data is held.
    • Clarification on processing purposes.
    • Correction or completion of inaccurate data.

    b) Right to Erasure and Consent Withdrawal

    Subjects may request data deletion if:

    • Consent is withdrawn.
    • Data is no longer needed.
    • Processing is unlawful.

    Failure to honor such requests may result in regulatory or legal action.

    Obligations of Data Controllers and Data Processors

    Controllers and processors must uphold transparency, lawfulness, and accountability:

    a) Legal Basis for Data Processing

      Data must be processed based on:

      • Explicit, documented consent.
      • Contractual necessity.
      • Legal obligation.
      • Vital interests.
      • Public interest.
      • Legitimate interest (with balancing test).

      Consent must be clear, informed, and revocable.

      b) Privacy Policy Requirements

      Controllers must:

      • Publish clear, concise, and accessible privacy policies.
      • Include the purpose of collection, retention periods, data sharing practices, and user rights.
      • Update policies as practices evolve.

      READ MORE:

      Cross-Border Data Transfers

      International data transfers are permitted but regulated. Organizations must:

      • Ensure the receiving country has adequate data protection laws.
      • Enter into binding contracts or standard contractual clauses (SCCs).
      • Obtain explicit data subject consent if no safeguards exist.

      Multinational corporations and cloud-based services must prioritize this when transferring data outside Indonesia.

      Data Breach Notification Obligations

      In the event of a data breach:

      • Notify the data protection authority within 72 hours.
      • Inform affected data subjects with details and remedial actions.
      • Maintain internal documentation and an incident register.

      Proactive breach response demonstrates accountability and may reduce penalties.

      Sanctions and Penalties for Non-Compliance

      The PDP Law introduces a layered enforcement model:

      • Administrative Sanctions: Written warnings, temporary suspensions, data deletion orders.
      • Civil Liability: Compensation claims by affected individuals.
      • Criminal Sanctions: Up to 5 years imprisonment and fines reaching IDR 6 billion for serious violations, such as intentional data abuse or illegal transfers.

      These sanctions serve as strong deterrents and reflect the seriousness of compliance.

      Practical Steps for Business Compliance

      Adopting a compliance framework is not optional. Here are key steps:

      a) Conducting a Data Audit

      Map your data lifecycle:

      • What data you collect
      • Where it is stored
      • How it is processed
      • Who can access it

      b) Appointing a Data Protection Officer (DPO)

      While not mandatory for all, having a DPO ensures:

      • Legal compliance
      • Internal governance
      • Regulatory communication

      c) Employee Training and SOPs

      Equip staff with data protection knowledge:

      • Include PDP Law in onboarding and training
      • Create written SOPs for data processing
      • Implement regular compliance drills

      Comparison with GDPR and Global Standards

      The PDP Law shares many similarities with GDPR but differs in structure:

      AspectPDP LawGDPR
      DPO RequirementOptionalMandatory (for most controllers/processors)
      ConsentRequired and revocableRequired, similar conditions
      SanctionsUp to IDR 6 billionUp to €20 million or 4% of global turnover
      Breach Reporting72 hours72 hours

      Understanding these nuances helps multinationals align global compliance strategies.

      How the PDP Law Affects Foreign Companies Operating in Indonesia

      Foreign businesses—especially tech companies, payment platforms, and B2C e-commerce—must:

      • Comply with PDP Law when serving Indonesian users.
      • Designate a local representative in Indonesia.
      • Prepare for potential audits or enforcement actions.

      Cross-border compliance isn’t just about legality; it is about customer trust and brand integrity.

      Practical Comment from Kusuma & Partners Law Firm

      “From our legal practice, many clients—especially SMEs and foreign investors—underestimate the breadth of Indonesia’s PDP Law. Early compliance reduces long-term risks. We advise implementing holistic data protection programs tailored to your business size and industry.”

      We assist clients in:

      • Legal audits
      • Drafting privacy policies and consent forms
      • Navigating cross-border compliance

      Let our legal team at Kusuma & Partners help you build a data protection culture that supports business growth.

      Conclusion

      Indonesia’s Personal Data Protection Law is a significant shift toward global digital accountability. Businesses that treat compliance as a core value—not just a legal hurdle—will enjoy improved consumer trust, stronger brand loyalty, and reduced legal risks.

      Whether you’re a local startup or a global enterprise, acting now positions your business as responsible, modern, and resilient.

      How We Can Help

      Need help aligning with Indonesia’s PDP Law? Reach out to Kusuma & Partners Law Firm. Our expert legal team is ready to support your compliance journey. Fill in the form below to get legal expert guidance from Kusuma & Partners Law Firm.

      “DISCLAIMER: This content is intended for general informational purposes only and should not be treated as legal advice. For professional advice, please consult with us.”

      To protect individuals' personal data and regulate its collection, use, and transfer.

      October 2024, with a two-year grace period from October 2022.

      Yes, if they process the data of Indonesian citizens.

      Generally, yes, unless another legal basis exists (contract, legal duty, etc.).

      Data types collected, purposes, retention period, sharing mechanisms, and user rights.

      Contact us

      Related News

      Copyright © 2025 Kusuma Law Firm. All right reserved
      Open chat
      Hello 👋
      Can we help you?