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Background and Overview

Indonesia has had data localization requirements since the enactment ofGovernment Regulation No. 82 of 2012 on the Implementation of Electronic Systems and Transactions (GR 82). GR 82 was enacted on 15 October 2012, with a transitional provision of five years for existing Electronic System Operators (as defined below) to comply with the regulations.

Even with the five-year transitional period, Electronic Systems Operators had difficulties fulfilling the data localization requirements, for example, multinational companies tend to have global data center arrangements with their offshore group entities. Electronic System Operators have asked the government, through the Ministry of Communication and Informatics (MOCI), to clarify the requirements and provide leniency.

As a response, the government is currently working on a draft amendment to GR 82. At the time of writing, there has been no official announcement from the government on when the amendment will be issued; however this is expected shortly.

This article covers the general data localization requirements, explores the uncertainties, including the interpretation of "public services" and provides a brief summary of the key points in the upcoming amendment to GR 82. This article also includes information on the current lack of enforcement of the data localization requirements.

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