OTT has to establish data center in Indonesia

JAKARTA. Indonesian government began to adopt firm stance towards over the top (OTT) enterprises that develop business in Indonesia. Recently, Minister of Communication and Information has issued Regulation No 20/2016 on Private Data and Electronic System Protections. The regulation stipulates that the OTTs are subject to establish data center in Indonesia.

The regulation, which will start taking effect on 1 December, has confirmed the government protections on the citizens’ private data that include the collection, management, storage and dissemination of personal data. In this case, the use of personal data without the user’s consent will be sanctioned.

The regulation also stipulates that the electronic system provider is subject to place the data center and disaster recovery center in Indonesia’s territory no later than two years after the enactment of this regulation.

Head of Public Relations Bureau of Ministry of Communication and Information Noor Iza said that the data placement in Indonesia aims at protecting the personal data of Indonesian citizens not to leak out of the country. The OTTs do not necessarily establish the new data center. Instead, they can rent the existing storage space in Indonesia.

According to Noor, the placement of data center in Indonesia will ensure that the personal data of Indonesian citizens will stay secure, even though the electronic system provider is no longer operating in the country.

Executive Director of Indonesia ICT Institute Heru Sutadi said that the government is supposed to issue the regulation on data protection in a much earlier time. However, the government was not decisive on this issue. Hence, the OTTs were still operating the data center in abroad, despite some OTTs have voluntarily developed the data center in Indonesia.

According to Heru, the regulation, which stipulates the imposition of sanction related to the placement of personal date in electronic system, is necessary. The lack of firm sanction will be detrimental to investors, mainly those who have voluntarily established data center in Indonesia.

Unfortunately, one of OTT players in Indonesia Google Indonesia was reluctant to give comment related to the obligation of establishing data center in Indonesia. “I am sorry, no comment,” said Corporate Communication Manager of Google Indonesia Jason Tedjasukmana, Tuesday (13/12).

(Muhammad Farid/Translator)