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Thursday, 09 September 2021 11:44

Personal Data Protection Law Necessary to Maintain the Digital Economy

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Indonesia is one of the countries with the biggest digital economy power in the world. According to a report released by Temasek, Google, and Bain & Co in 2019, Indonesian digital economic growth is predicted to reach 49 percent year on year; while e-commerce growth will surpass US$130 billion in 2025. 

Minister of Trade, Muhammad Lutfi said on June that Indonesian digital economy is projected to grow by eight folds in 2030 namely from Rp 632 trillion into Rp 4,531 trillion. E-commerce will also play a great role by reaching 34% or around Rp 1,900 trillion.

Digital economy is one of national saviors amid the Covid-19 pandemic. It keeps growing despite some sectors being sluggish. Therefore, all national elements must maintain the momentum of the ongoing digital economic growth in Indonesia.

The Indonesian government, as stated by Deputy Minister of Trade, Jerry Sambuaga on Tuesday (7/9), keeps supporting digital economic growth through funding, training for digital economy business people, digital transformation, and personal data protection.

Personal data protection is crucial in creating a sense of security for customers. Personal data must be well-guarded. One's privacy rights must be guaranteed.

Basically, Indonesia has already owned laws that protect personal data confidentiality, such as the Electronic Information and Transaction Law (UU ITE), that regulates personal data use based on the consent of the person; and the Population Administration Law that also regulates personal data. Similar regulations on personal data protection are also written in other legal documents, such as the Communication and Informatics Ministerial Decree.

However, a more comprehensive law is still needed to be able to regulate more detail on how the protection is implemented, such as the responsibility of the personal data controller in protecting user's personal data, followed by the punishment for neglect or violation.

A comprehensive Personal Data Protection Bill is being discussed by the House of Representatives -DPR. This bill is expected to pay attention to the dynamics in the national digital economy. Thus if effective, the law can really protect and even encourage a more rapid digital economic growth.

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