Indonesia And The United States Trade Agreement Is The Beginning Of National Data Governance Consolidation

Transfer of Indonesian citizen data by the United States is an important geopolitical signal. (Unsplash)

JAKARTA The trade agreement between Indonesia and the United States (US) is far from over. Recently, the most important thing in the spotlight is the matter of US access to Indonesia's personal data.

In an official statement released by the White House regarding the 19 percent reciprocal rate for Indonesia, it was stated that the US and Indonesia would complete their commitments in digital trade, services, and investment.

One of the points is that Indonesia will provide certainty about the ability to move personal data from Indonesia to the US.

"Indonesia will also provide certainty regarding the ability to move personal data outside of its territory to the United States through the recognition that the United States is a country or jurisdiction that provides adequate data protection based on Indonesian law," the White House statement said.

However, the Palace insists that "recognition" in that context does not mean opening all access to personal data freely, but is subject to strict boundaries in accordance with national law.

Head of the Presidential Communication Office Hasan Nasbi stated that the agreement to transfer data between Indonesia and the United States, which is part of the import rate agreement, was only for the benefit of exchanging certain goods and services.

Hasan's statement relates to one of the commitments taken by Indonesia in the import tariff agreement, namely providing certainty regarding the transfer of personal data to the United States, where this was explained in an official statement issued by the White House, Wednesday.

"This goal is that all commercials are not for our data to be managed by others, and we are not managing other people's data. That's roughly the case," Hasan Nasbi said, quoting Antara.

"That's for the exchange of certain goods and services which can later become two branches, he can be useful material but can also be dangerous goods such as bombs. It needs data disclosure, who is the buyer of who is the seller," he added.

Hasan explained that the exchange of data for goods and services was part of strategy management.

Chairman of the CISSReC Cyber Security Research Institute Pratama Pershada said that the agreement between Indonesia and the US that opened the tap for private transfers abroad, especially to Uncle Sam's country, was an important geopolitical signal that could not be seen alone as a technology transaction.

"This moment can actually be used as a strategic opportunity to accelerate the strengthening of national data governance which is sovereign, modern, and adaptive to global challenges," said Pratama in a written statement received by VOI.

Pratama explained that Indonesia's openness to the flow of global data is legitimate, but still adheres to the principle of digital sovereignty, which is not to sacrifice the right of the state to regulate and protect the digital activities of its citizens. In this case, Law Number 27 of 2022 concerning Personal Data Protection (UU PDP) is an important framework.

The PDP Law, he continued, does open up legal space for cross-border data transfer as long as destination countries have equivalent or higher data protection standards than Indonesia or if there has been a binding international agreement. Therefore, the establishment of the Personal Data Protection Supervisory Agency (LPPDP) and the preparation of government regulations as derivatives of the PDP Law are considered urgent.

"Without independent technical devices and supervisory agencies, Indonesia's commitment to protecting the digital rights of its citizens will be difficult to translate into policies that are operational and efficient," explained Pratama.

Furthermore, Pratama also emphasized that this collaboration should not be a "empty check" that allows foreign parties to access Indonesian citizen data without clear control and time limits. Indonesia, he said, cannot turn a blind eye to the potential risks that accompany the flow of cross-border data.

There must be an objective evaluation standard for data transfer destination countries. If necessary, a bilateral agreement is made that guarantees the digital rights of citizens, including the right to be removed, the word of notification, and the right to sue even though the data is abroad," Pratama explained.

This step is important to take to show that Indonesia is not just following global flows, but actively forming it based on the principles of transparency, accountability, and digital justice.

Furthermore, Pratama highlighted that Indonesia has a great opportunity to lead the ASEAN region in terms of fair data governance. According to him, Indonesia must continue to maintain non-block principles amidst the rivalry between the United States and China, Indonesia can anchor regional digital stability.

Pratama reminded that data management is not only a matter of privacy, but also a matter of the digital economy. Personal data is the main raw material for the development of technology such as artificial intelligence and commercial algorithms.

"If it is not managed properly, our data will only become raw commodities processed by foreign parties, then they will be resold to Indonesia," said Pratama.

Therefore, he emphasized the importance of strengthening national digital infrastructure, domestic research, and technology independence.

The agreement on data transfer is not the end, but rather the beginning of national consolidation in the field of data governance. With a strong legal framework, independent supervisory agencies, and sovereign digital diplomacy, Indonesia has a great opportunity to become the main actor not just an object in a more just and sustainable global data architecture," said Pratama ending it.