INDONESIA Law and Practice Contributed by: Agus Ahadi Deradjat (Agung), Mahiswara Timur, Nina Cornelia Santoso and Natasya Nurul Amalia, ABNR Counsellors at Law
case, the government issued MD 352, which regulates the bandwidth that 5G networks can operate on. In contrast, Starlink’s direct-to-cell technology, which provides direct internet ser - vice from its satellites to the user’s cell phone, is still under the government’s watch. 7. Challenges with Technology Agreements 7.1 Legal Framework Challenges In the ever-evolving tech industry, numerous business models are emerging that have not yet been addressed by current laws and regulations. As a result, a thorough evaluation is essential to ensure these new models are both legal and compatible with existing regulatory frameworks. In navigating this complex landscape, it is imperative to carefully weigh the need for sov - ereignty with the need to facilitate technological advancement. The Indonesian government has attempted to do so by allowing freedom of use of foreign data centres as stipulated in GR 71, provided that there is a guarantee of data acces - sibility to facilitate supervision and law enforce - ment. When entering into a technology agreement with a local organisation, the “freedom of contract” principle applies. However, should a technology agreement encompass certain industries, such as the financial and health sectors, they may be subject to greater restrictions. Recommended Clauses in Technology Agreements Data protection clauses Data protection clauses in technology agree - ments act as a critical safeguard for parties involved in the agreement, ensuring that person -
al and sensitive data is handled with care and in compliance with relevant laws and regulations. Data protection clauses include clauses on the roles of each party in the processing of personal data, cross-border data transfer requirements Pursuant to Law No 24 of 2009 on National Flag, Language, Coat of Arms, and Anthem, any agreements involving an Indonesian individual or legal entity must include the Indonesian lan - guage. Therefore, any agreements that are designed for Indonesian consumers must at least be accom - panied by a separate version exclusively drafted in the Indonesian language (bilingual language is acceptable). Restrictions Under EIT Law As noted in 1.4 Consumer Protection , parties to an international electronic transaction that contains standardised clauses made by an ESO must be governed by Indonesian law. and data subjects’ rights. Local language clause Restrictions for Financial and Health Sectors There are greater restrictions and obligations in relation to data localisation for the financial and health sectors, which mandate data localisation. Exemption may apply upon obtaining approval from a regulator such as the OJK or MOH (as applicable). Financial institutions may require OJK or BI approval prior to entering into agreements with third-party technology providers.
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