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View all search resultsData protection at stake in the Indonesia-US trade agreement
By prioritizing the commercial "free flow" of information, the Indonesia-US trade deal threatens to transform personal data from a constitutional right into a mere commodity, leaving Indonesian citizens vulnerable in a regulatory vacuum.
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Security first: Figurines stand around a smartphone, whose back is opened, in a composite photo created in Paris on July 23, 2021, to raise the issue of personal data protection in this fast-growing digital era. (AFP/Joel Saget)
T
he Indonesia-United States Agreement on Reciprocal Trade (ART) has drawn considerable public scrutiny since its signing on Feb. 19. Despite being labeled "reciprocal", this agreement is widely viewed as reinforcing a significant imbalance between the two countries. The Center of Reform on Economics (CORE) even labeled it as a new form of economic exploitation.
One of the most pressing issues to emerge from the trade deal is the cross-border transfer of personal data. Critics have highlighted several risks, including potential violations of the Indonesian Constitution and the Personal Data Protection (PDP) Law, alongside concerns regarding economic exploitation and mass surveillance.
It is, therefore, essential to examine what this agreement means for the protection of Indonesian citizens’ data and to consider the steps Indonesia must take to ensure that its implementation does not infringe upon fundamental rights.
While Indonesia’s conceptualization of personal data has long been influenced by economic considerations, the PDP Law emphasized the protection of personal data as a constitutional right. The Indonesia-US ART may intensify the tensions between privacy and economic interests that have characterized the development of data protection in Indonesia.
This tension arises largely because the US approach to personal data governance primarily adopts industry self-regulation and market-based approaches, which place greater emphasis on data commercialization. Unlike Indonesia, the US lacks a comprehensive federal PDP Law, relying instead on sector-specific regulations and industry standards.
The inclusion of personal data transfer clauses in the ART inadvertently treats personal data as a commodity. This perspective has been reflected in government remarks framing such transfers as serving commercial purposes, though the full extent of such use remains unclear. If political elites prioritize economic growth over the protection of citizens’ rights, the risk of personal data violations and vulnerability to exploitation increases—especially amid the dominance of US tech companies and democratic decline in both nations.
In general, the cross-border transfer of personal data necessitates compliance with specific regulatory mechanisms, primarily established at the receiving end of the transaction. These mechanisms are typically structured within a hierarchical system.
