Cybersecurity Policy Report, Indonesia, U.S. Inch Toward Cross-Border Data Flow Pact, (Jul 25, 2025)
Organizations Mentioned:Mr. Cooper
The U.S. and Indonesia have tentatively agreed, as part of a preliminary trade pact, that U.S. legal protections for personal data are good enough to allow for data to flow freely from Indonesia to the U.S.
“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. American companies have sought these reforms for years,” according to a White House fact sheet.
Indonesia’s Ministry of Communication and Digital Affairs noted that the framework issued by the White House still needed to be fleshed out but said it was a step toward a full agreement on cross-border data flows.
“The flow of data between countries is still carried out under the strict supervision of Indonesian authorities, with the principle of prudence and based on the provisions of national law,” according to a translation of the ministry’s statement, issued in Indonesian.
“Transfer of cross-border personal data is permissible for legitimate, limited, and legally justified purposes. Concrete examples of legitimate data transfer activities include: the use of search engines such as Google and Bing, data storage through cloud computing services, digital communication through social media platforms such as WhatsApp, Facebook, and Instagram, processing transactions through e-commerce platforms, as well as the purposes of digital research and innovation,” the ministry said.
Although still preliminary, the trade framework’s provisions on cross-border data flows and digital trade were greeted with optimism by technology business groups.
“The US-Indonesia trade agreement is a breakthrough in digital trade policy,” Aaron Cooper, senior vice president–global policy at the Business Software Alliance, said in a statement.
“The agreement’s provisions to eliminate tariffs on intangible digital products, guaranteeing cross-border data transfers, and supporting the permanent extension of the moratorium on digital customs duties expands access to digital services and supports the adoption of technology,” Mr. Cooper said.
The Computer and Communications Industry Association noted that Indonesia had agreed “to address several of its longstanding restrictions affecting digital trade, including local content requirements that have been imposed on communications devices, a tariff regime designed to impose duties and reporting requirements on products transmitted electronically, and certainty on the ability of U.S. firms to transfer personal information outside the territory of Indonesia.”
“The announced Framework agreement for addressing Indonesia’s many trade barriers, including tariff regimes targeting digital products, restrictions on cross-border data flows, and local content requirements for communications devices, is an important and encouraging step in reforming what has long been one of the most challenging markets for U.S. suppliers,” CCIA VP Jonathan McHale said in a statement. “We look forward to a binding agreement addressing not only these restrictions, but a path to resolving all outstanding barriers that remain in this important market.”
News: InternationalLegislation FederalLegislation DataPrivacy DataSecurity