Highlights in The New Government Regulation on Electronic Systems and Transactions

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On 10 October 2019, President Joko Widodo finally issued the long-awaited regulation on the issue of data localization in the new Government Regulation of the Republic of Indonesia No. 71 of 2019 (“GR 71/2019”) on the Organization of Electronic Systems and Transactions, which revokes previous regulation that were issued in 2012 under Government Regulation of the Republic of Indonesia No. 82 of 2012 (“GR 82/2012”). Apart from provisions on data centres, this client alert highlights other material provisions in this new regulation.

Objectives of GR 71/2019 -

Data sovereignty has been one of the main talking points for the Government. The initial intention of the Government was to enforce data localization, mainly aimed at electronic data classified as strategic, by amending GR 82/2012. However, in the development, instead of an amendment, GR 71/2019 was issued to replace GR 82/2012 and provide a more flexible approach to data management.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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