INDONESIA Law and Practice Contributed by: Agus Ahadi Deradjat (Agung), Mahiswara Timur, Nina Cornelia Santoso and Natasya Nurul Amalia, ABNR Counsellors at Law
2. Cloud and Edge Computing 2.1 Highly Regulated Industries and Data Protection It is a universal value that efficiency is key for doing business, which leads to the adoption of cloud services as a means to scale up digital infrastructure with minimum expense. Cloud and edge computing increase the accessibility of advanced technology. In Indonesia, cloud and edge computing have not been regulated yet. However, some general compliance related to the EIT Law, Law No 27 of 2022 on Personal Data Protection (the “PDP Law”) and the Consumer Protection Law is applicable to the use of cloud computing, with greater restrictions applying to certain industries such as the financial sector and healthcare. Financial Sector Banks are generally allowed to co-operate with third-party IT providers in implementing their IT (including the use of cloud computing). How - ever, the co-operation must comply with the requirements under OJK Regulation No 11/ POJK.03/2022 on Implementation of Informa - tion Technology by Commercial Bank (POJK 11), such as: • having supervision over the implementation of the third-party provider services; • the procurement of the third-party provider must consider the matters provided under POJK 11; and • having a co-operation agreement with mini - mum provisions, as set out in POJK 11. If a bank intends to co-operate with a foreign IT service provider for any IT-based transac - tion processing, it must obtain approval from the OJK. The regulation also requires banks to
vices and products to provide a dedicated chan - nel and detailed guidelines on the complaint management process. 1.5 The Role of Blockchain in the Digital Economy Ever since its existence was recognised by the Indonesian government in 2020, cryptocurrency, which is based on blockchain technology, has massively transformed the Indonesian digital economy landscape. Following the enactment of Law No 4 of 2023 on the Development and Reinforcement of the Financial Sector, the management of cryptocur - rency was to be effectively transferred from the Indonesian Commodity Futures Trading Regu - latory Agency ( Bappebti ) to the Financial Ser - vices Authority ( Otoritas Jasa Keuangan ; OJK) by January 2025 at the latest. This change was aimed at harmonising cryptocurrency with other forms of financial services regulated under the OJK. However, this concrete change in author - ity is dependent upon a government regulation, which is yet to be issued. In 2024 alone, the cryptocurrency transac - tion value exceeded IDR500 trillion according to Bappebti . Despite the immense size of the market, cryptocurrency is a commodity that can only be traded on a specific platform, called the Crypto Asset Physical Market, and it is not rec - ognised as a valid instrument of payment under the Currency Law. The government is continu - ously making efforts to ensure that cryptocurren - cy remains as a commodity, and cannot be used as a payment instrument, by comprehensively regulating the flow of transactions that could be made by crypto-asset-related business under - takings as well as by expressly prohibiting PSPs from concluding or processing any payment in cryptocurrency.
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