US Trade Pact With Indonesia Includes Data Adequacy, But Timing is Unclear
Indonesia agreed to grant the U.S. "adequacy" for personal data transfers under a trade deal the White House announced Tuesday, but it's unclear when the decision will take effect, IAPP Global Privacy Policy Manager Luis Montezuma told us Wednesday.
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Indonesia's Personal Data Protection Law came into effect in 2024, but the government hasn't issued the necessary executive regulations or established the Data Protection Authority required to issue adequacy decisions, Montezuma told us in an email.
Also missing from the trade agreement is a further explanation of the specific purpose of data transfers, Montezuma said. However, he added, the deal might compel Indonesia's Ministry of Communication and Digital Affairs and other relevant government bodies to hasten their regulatory processes to provide clarity and guidance.
The ministry, which is the temporary supervisor of personal data protection, reportedly stated Wednesday that the issue "will be coordinated more 'in-depth' [Thursday]," Montezuma told us.
The Trump administration's announcement reads: "Indonesia will provide certainty regarding the ability to move personal data out of its territory to the United States through recognition of the United States as a country or jurisdiction that provides adequate data protection under Indonesia’s law."
Montezuma said the U.S. has always been a strong advocate for multilateral cooperation in promoting trusted data flows, particularly through initiatives like the Global Cross border Privacy Rules Forum (see Ref:2506020003]) and engagement with local governments.
The Indonesian adequacy finding is the largest such national decision by population and shows how the Brussels effect is spreading around the world, IAPP Director of Research & Insights Joe Jones posted on LinkedIn Wednesday.