In today’s digital world, online transactions, social media, and cloud storage are rising and constantly share and store vast amounts of sensitive information. Personal data protection Indonesia, as well as any other place, is more critical than ever.
Individuals and businesses should apply proper safeguards to avoid identity theft, financial fraud, and privacy breaches. Security measures such as encryption, multiple-authentication, and compliance with data protection laws, should be implemented. Meanwhile, individuals should have personal safe online habits, such as using strong passwords and being cautious with data sharing.
Indonesia, like any other country in the world, is also facing challenges in this digital landscape. Security breaches and identity theft are the most recurring problems. However, some solutions can be implemented to protect personal data, as will be discussed in this article.
What is Personal Data Protection?
Personal data protection refers to the practices, including policies and regulations designed to safeguard personal information from unauthorized access or misuse. This practice involves securing data such as names, addresses, financial details, and various online activities. The purpose is to prevent identity theft, fraud, and privacy violations.
Also Read: AI Authentication: Top Fraud Prevention Solutions in 2025
Governments and organizations are enforcing personal data protection laws, such as the General Data Protection Regulation (GDPR) in the European Union. In the USA, there is California Consumer Privacy Act (CCPA) is an example. All these laws are intended to protect personal data or information against any breaches and misuse.
The Legal Framework for Personal Data Protection in Indonesia
Personal data protection Indonesia is governed by several laws and regulations. The primary legal framework in Indonesia is the Personal Data Protection Law (PDP Law) No. 27 of 2022. This law is inspired by GDPR and also established rules for the collection, processing, storage, and transfer of personal data in Indonesia.
Additionally, the personal data protection law Indonesia also completed with Electronic Information and Transactions Law (EIT Law) No. 11 of 2008 and then amended by Law No. 19 of 2016. This law governs electronic transactions in digital activities.
Another one is a regulation from the Minister of Communication and Informatics No. 20 of 2016. This regulation provides guidelines on personal data protection in electronic systems which cover data collection, processing, storage, and deletion.
Furthermore Government Regulation No. 71 of 2019 on electronic systems and transactions specifies obligations for both public and private entities in handling data. All these laws and regulations should build our awareness of the importance of protecting personal data.
Challenges in Implementing Personal Data Protection
Protecting personal data is essential in this digital world, considering the more digital transactions and systems applied in businesses. However, data breaches and misuse of personal data, especially data thefts are also on the rise. Account takeover prevention still faces some of key challenges such as:
1. Lack of Awareness
Many individuals and even businesses still are unaware of the laws and regulations for protecting personal data. Therefore, this leads to unintentional violations and data breaches. Limited resources are also problem of small and medium enterprises in their effort to compliance.
2. Infrastructure and Technological Gaps
Many businesses, especially small and medium enterprises or startups, lack access to cutting-edge cybersecurity tools. High costs of updating their IT infrastructure and lack of IT experts could be the reason. They are struggling to keep pace with the rapidly evolving cyber threats, especially AI-powered hacking and various viruses.
3. Enforcement and Compliance
Even protecting personal data or account takeover prevention can be a challenge. One of the reasons is resistance from businesses that view these regulations as restrictive and costly. Another problem is difficulty in monitoring compliance. Poor internal controls make enforcement more challenging.
4. Cultural and Behavioral Barriers
People’s attitudes, habits, and sometimes, societal norms can significantly influence how personal data is handled. Lack of privacy awareness, over-sharing culture, especially in social media, and weak data security practices in daily life, are the big challenges to overcome.
In some cultures, collective data sharing is normalized, such as family members openly sharing passwords. Even some workplaces store personal employee data without consent, or store those data in easily accessible places.
Steps Taken to Improve Personal Data Protection in Indonesia
In response to the growing cyber threats and the ever-increasing digital transactions, Indonesia has made significant efforts to strengthen personal data protection. How can you protect personal data also depends on your awareness, willingness to enhance data security, and compliance.
1. Government Initiatives and Regulations
As mentioned above, the Indonesian government has made laws and regulations to protect personal data. Additionally, the government is setting up an independent Data Protection Authority to oversee compliance and enforce the PDP Law, as well as investigate any violations that occurred.
2. Public Awareness Campaigns
The most important thing to build and strengthen is the awareness of the importance of data protection among the citizens. Through the Ministry of Communication and Informatics (Kominfo), the Indonesian government conducts campaigns to educate the people about privacy rights, safe online practices, and cyber security risks.
These campaigns also applied in schools and universities by integrating digital literacy into their curriculum. Hopefully, all this awareness will make Indonesian people more cautious to protect themselves in the digital landscape.
3. Collaborations with International Organizations
Indonesia actively collaborates with international organizations to strengthen personal data, and aligns its laws with global standards to combat cyber threats. This partnership will help enhance cyber security and promote cross-border data governance.
Cooperation is engaged between Indonesia with ASEAN member states and aligned with GDPR to develop Indonesian PDP Law. Indonesia also being a member of the Global Forum on Cyber Expertise (GFCE) which facilitates knowledge-sharing on data protection, cyber resilience, and risk management.
Additionally, Indonesia also has joint cyber security initiatives with many international organizations such as the Interpol, Non-Governmental Organizations, and global tech companies like Meta, Google, and Microsoft. Therefore, Indonesia is improving its ability to safeguard personal data and create a more secure digital ecosystem.
Impact of Personal Data Protection Law on Business
The enactment of the Personal Data Protection Law (PDP Law) in Indonesia has significant implications for businesses. While the law enhances consumer trust and data security, it also presents challenges for businesses in the implementations and costs.
1. Increased Compliance Obligations
Businesses must now obtain consent from any individuals before collecting and processing personal data. They must also ensure transparency in data usage while providing access to users when they want to change, adjust, or delete any information.
2. Stronger Data Security Measures
Businesses must implement robust cybersecurity practices, such as encryption, multiple authentication, and even regular security audits. This practice is particularly crucial for businesses handling sensitive data, such as banks, healthcare providers, and e-commerce platforms.
3. Increased Operational Costs
Implementing data security measures, upgrading infrastructure and hiring compliance experts requires financial investment.
However, this situation also encourages businesses to adopt more efficient and secure data management systems. Keypaz could be a good example of data protection company, as they are the first company in Asia that have an AI-powered verification system.
Keypaz provides services for securing personal data for your digital businesses. Its affordable security solution will certainly help your business and your customers safe and keep up with the regulations. Learn more about Keypaz here!