Experts Express The Risks That Will Appear As A Result Of The Indonesia-US Data Transfer Agreement

JAKARTA - Cybersecurity expert and Chairman & Founder, Indonesia Cyber Security Forum (ICSF) Ardi Sutedja said that trade agreements between Indonesia and the United States regarding cross-border data transfer will pose risks in various sectors.

"So, yes, we are surprised. We are surprised that if the cross-border data exchange component is used as part of the trade negotiations, we never imagined that it will be included," Ardi told the media when met in Jakarta on Thursday, July 24.

He emphasized that if this agreement was ratified, it would pose various risks to Indonesia's economy, social, culture, poly k, and national security, especially from a security and cyber security perspective.

Data security risk

Ardi explained that America does not have a Federal Law that specifically takes care of data protection issues. So, no one can guarantee that the data distributed to the US will be safe.

According to him, cross-border data transfer can enable access to sensitive and personal data of Indonesian citizens by foreign parties, which can be misused for certain purposes. With data that is more easily accessible internationally, this will increase the potential for data theft to ransomware.

Threatening to localize data

This agreement, continued Ardi, could also weaken the localization policies of data that have been implemented by the government. He said that so far the objections of a number of US technology companies to the obligation to store data in Indonesia have become an issue in bilateral trade relations.

"So the policies that are already good, and supported by industry, seem to be being revised. Because so far, it (data localization) has objected to several companies in America. It is considered burdensome, they do not want to invest in the data center," he explained further.

Dependence

This agreement is also said to create a dependence on foreign technology service providers, which are considered to reduce Indonesia's independence in data management and information technology infrastructure.

Economic Implications

Local companies may have difficulty competing with foreign companies that have greater access to data and resources. Unregulated data transfers could result in tax revenue loss from companies operating internationally.

Social Impact

Ardi also stated that the public may lose confidence in the government and companies if their personal data is not properly protected.

"When the law (PDP) was passed, we were very enthusiastic. Now, oh this is a long time (implementation). Meanwhile, in the time since it was promulgated with the protracted ratification process, there have been many incidents. Data leaks, PDNS. That is what erodes public trust," he said.

Worse, if this personal data is misused and used for highly sophisticated micro-targeting, not only for commercial advertising, but also for political and social propaganda. This can divide society, amplify hoaxes, and form public opinion according to foreign interests

"If we remember the case of the Cambridge Analytica scandal, how can they manipulate public opinion based on algorithms from personal data," said Ardi.