Strict Data Protection Law Holds Companies Liable
Strict Data Protection Law Holds Companies Liable

Strict Data Protection Law Holds Companies Liable

July 2024

Starting October 16, Indonesia’s strict personal data protection law No. 27/2022 will come into effect, which requires anyone or any company processing the personal data of Indonesian citizens to comply with its provisions. The law’s legal sanctions are complex and can be significant. In more severe breaches, individuals may face imprisonment for up to six years or fines up to IDR60 billion. Buying or selling personal data may result in a five year prison sentence and/or fines of up to IDR50 billion. 

Businesses that violate this law may be subjected to additional criminal penalties, including the confiscation of profits and/or assets, the freezing of whole or part of the business’ operations, up to and including dissolution of the business itself. 

These stringent penalties highlight the government’s stern stance on personal data protection and the rigorous enforcement measures that are in place against violations. While implementation of the law may be inconsistent, company leaders must make the right decisions when using and protecting personal data collected for their operations. The financial and reputational damage from making the wrong decisions and choices can be devastating, underscoring the need for proactive and proper risk management. 


Enhanced Risk Management

Data breaches and cyber threats are growing in both frequency and sophistication. In Indonesia, the digital transformation is exposing businesses to myriad risks, from hacking and phishing attacks to insider threats and data leaks. 

Moores Rowland Indonesia’s seasoned professionals implement robust and resilient client data protection measures to mitigate any risks. Clients of Moores Rowland Indonesia can count on the firm’s strong privacy standards in handling data involving accounting and development of financial statements, extremely sensitive private tax data, and payroll outsourcing involving customer or staff personal data including salary, taxes, benefits, marital status, home addresses, etc.

From its initial establishment more than 30 years ago, Moores Rowland Indonesia is now one of the nation’s top audit, outsourcing, tax, legal, sustainability and advisory services providers. Through our alliance with Praxity, an innovative, international alliance of 780 offices of best-in-class independent accounting firms, Moores Rowland Indonesia combines expertise from strategic locations around the world, leveraging highly-customized business solutions and deep regional understanding – driving outstanding results and returns for its clients.

Global Best Practices and Competitive Advantage

Moores Rowland Indonesia is experienced working with international clients, is familiar with diverse regulatory landscapes, and can provide invaluable insights for companies seeking to protect their data and achieve a competitive edge. The firm’s best practices ensure Indonesian and international businesses can build trust with customers and partners, thereby fostering a reputation for reliability and security. 


A Strategic Imperative

Data privacy is a multifaceted field that encompasses legal, technical, and organizational dimensions. Moores Rowland Indonesia brings a holistic understanding of these aspects, offering insights that go beyond mere compliance. In a dynamic regulatory environment, Moores Rowland Indonesia continuously updates their knowledge and skills, ensuring its clients receive up-to-date advice, and can adapt swiftly to new regulations and emerging threats.

Moores Rowland Indonesia supports businesses in ensuring compliance with Indonesia laws on personal data protection, and in building consumer confidence and trust through data security. As the digital landscape continues to evolve, proactively addressing data privacy concerns is a strategic imperative. By partnering with Moores Rowland Indonesia’s expert advisors, businesses are better positioned to thrive and succeed in a competitive market, and protect their most valuable asset: customer trust.