Micro Focus: Enactment of the PDP Law Can Be a Benefit for Indonesia's Digital Economy

Illustration of personal data security (photo: Pixabay)

JAKARTA - After a very long time, Indonesia has finally enacted the first and most awaited Personal Data Protection Law (PDP) in September 2022.

The push to accelerate the passage of this law is increasing from month to month due to the widespread issue of data leakage to the highest level, namely the disclosure of presidential vaccine records and BSSN secret documents to Joko Widodo.

Micro Focus as one of the largest IT dilemma-focused enterprise software providers in the world revealed, in the first quarter of 2022, Indonesian citizens and institutions experienced an increase in the number of cyberattacks by 22 percent compared to the same period in 2021.

Big Loss

Micro Focus said that the data breach had caused a huge loss to the business' reputation and finances. With the average loss of data breaches increasing by more than 12 percent from USD 3.86 million (IDR 58 billion) to USD 4.35 million (IDR 65.6 billion) since 2020.

As such, businesses must take extra care in protecting personal data to avoid financial downturns while preserving their reputation. Businesses need to prepare for greater accountability.

Therefore, Micro Focus mentions that the potential consequences of this new law will require businesses in Indonesia to improve their data protection regime.

With the protection and preservation of personal data that is now firmly bound by law, this can be an advantage for Indonesia's digital economy, which is estimated to grow to USD 146 billion by 2025.

“Indonesia's introduction of the Personal Data Protection Act (PDP) may seem daunting at first, but ultimately, it provides businesses with a framework to ensure accountability and strength within their data protection regime," said Anna Russell, Worldwide Vice President, Strategy, Voltage Data Privacy & Protection, Micro Focus.