Jakarta Reassures Public on U.S. Digital Trade Pact: Personal Data Remains Protected

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JAKARTA, investortrust.id – Indonesia has emphasized that its new digital trade agreement with the United States will not compromise the privacy of its citizens. Officials clarified Thursday that cross-border transfers of personal data will remain tightly regulated under Indonesian law, reinforcing the government’s stance on digital sovereignty.

The assurance came in response to a July 22 White House announcement, which celebrated the initial removal of digital trade barriers between the two countries. Indonesia’s Ministry of Communication and Digital Affairs said the deal creates a legitimate and secure legal framework for international data flows, particularly between U.S.-based digital services and Indonesian users.

“This is not an act of handing over personal data freely,” the ministry said in an official statement on Thursday, July 24, 2025. “Rather, it provides a legal basis to protect Indonesian citizens when they use digital services operated by U.S. companies.”

The ministry underscored that services such as search engines, social media platforms, cloud computing, and e-commerce will be required to comply with Indonesia’s Personal Data Protection Law (Law No. 27 of 2022) and Government Regulation No. 71 of 2019 on electronic systems and transactions.

The White House’s official release echoed this position, noting that all data transfers must meet the standards of “adequate data protection under Indonesia’s law.”

Legal Control and Limited Purpose

Kemenkomdigi stressed that international data transfers are permitted only under legitimate, narrowly defined, and legally justified circumstances. This includes activities like using Google Search, storing files on cloud platforms, communicating via WhatsApp, and making transactions on e-commerce sites.

“Such activities remain under the supervision of Indonesian authorities,” the ministry stated. “Transfer of data must occur within a framework of secure and reliable data governance. It cannot be arbitrary and must not undermine citizens’ rights.”

President Prabowo Subianto has previously said negotiations on digital data policy remain ongoing. His statement aligns with the U.S. release, which categorized the development as part of an evolving framework under the “Removing Barriers for Digital Trade” initiative.

The government affirmed that national legal protections remain the foundation of any future agreements—similar to how G7 countries have structured their cross-border data flows to balance openness with sovereignty.

“The government continues to place national legal protection as the core foundation in this cooperation,” the ministry concluded.