Privacy Law Finally Passed, Financial Sector Bill Prioritized, Biden Says Pandemic Over, Pessimism at G20
Sep 21, 2022
DPR Passes Privacy Bill
The House of Representatives (DPR) finally passed the much-delayed Privacy Bill, as Indonesia’s first comprehensive privacy regime, during the DPR plenary session yesterday, Sept 20. The Bill was first proposed in 2014, with the deliberation process mostly stuck on the topic of data privacy authority. Minister of Communications and Informatics Johnny G Plate applauded the passing of the Bill, saying it was a long-awaited historic moment that would improve data privacy standards in Indonesia’s developing technology industry.
Similar to other data privacy frameworks such as the European Union's General Data Protection Regulation (GDPR), the Law requires those who hold data – data controllers and processors, public and private – to ask for consent to collect and share data and outline why and how they will use the data. Aside from consent from data owners, controllers and processors must also make efforts to uphold the security of the data.
Under the Law there are two kinds of sanctions – administrative and criminal penalties. Administrative sanctions include fines for both public and private data handlers, while criminal penalties are for individuals and companies proven guilty by the court of illegally collecting, using, selling, or publicizing personal data. The Law provides a two-year grace period for all parties to comply.
To whom the Data Privacy Authority should report, a matter of long debate and controversy, has been outlined generally in the law. It will report directly to the President, and any further details will be regulated by a Presidential regulation. The agency will be responsible for implementing data protection policies, imposing administrative sanctions, as well as resolving out-of-court disputes.
Ultimately, the law still fosters considerable uncertainty, with Plate saying it is not perfect and remains a work in progress. AmCham Indonesia will continue to monitor the development of privacy policies going forward, as we have been for many years. We have had several engagements with both the government and the DPR Commission I on this matter, and submitted several suggestions and inputs dating back to 2015, following different versions of the Bill.
The Omnibus Financial Sector Development and Strengthening Reform Bill (RPPSK) officially become a House of Representatives (DPR) initiated bill, during the DPR plenary session yesterday, Sept 20. As a DPR-initiated bill, it will have a smoother transition to being passed as a law, in contrast with a government-initiated bill, which needs the approval of at least nine DPR fractions.
The bill, drafted and submitted in the 2021 National Legislation Program (Prolegnas), aims to provide a stronger, more up-to-date and comprehensive foundation for financial sector reform. It will improve the governance and coordination of relevant institutions such as Bank Indonesia (BI), the Financial Services Authority (OJK), the Indonesia Deposit Insurance Corporation (LPS), the Financial Sector Stability Committee (KSSK), as well as bank and non-bank financial service institutions. It will also include policies on fintech and the digital transformation of financial institutions.
Shipper and BenihBaik.com (an established charity organization that focuses on social welfare) are collaborating to create the “Training, Mentoring, and SMEs Capital Assistance” program.
As a technology company which grows together with micro, small and medium-sized enterprises (MSMEs), Shipper has always been consistent in supporting and assisting Indonesia's local MSMEs to grow and develop through all their phases.
MSMEs and even the smaller scale of entrepreneurs, the ultra-micro, have long been the pillars of Indonesia's national economy. However, due to the Covid-19 pandemic, the vulnerability of these ultra-micro entrepreneurs has escalated to a massive extent with an average turnover decline of up to 50 percent. With most ultra-micro businesses still being managed by individuals, these business actors still have shortfalls on digital and financial literacy while struggling to balance their business and household expenses.
Adhering to its vision of “Teman Kamu Berjuang” (fight for your friends), Shipper is giving back to society by collaborating with BenihBaik to empower more than 450 ultra-micro businesses throughout Indonesia by capacity building on business digitization, financial literacy and venture capital assistance. Set out to understand the vulnerability and needs of these ultra-micros, they are equipped with digital business strategies and management as well as access to financial literacy to accelerate their revival and capability to scale up the business after the pandemic.
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The United Nations General Assembly (UNGA) kicked off on a pessimistic note yesterday, Sept 20, with UN Secretary General Antonio Guterres sharing his concerns over the number of challenges to be discussed over the next two weeks, including climate change, food shortages, and economic difficulties. He also lamented the decline in multilateralism, saying he felt the solidarity embedded within the UN charter is being devoured by nationalism and self-interest, on which Indonesian Foreign Minister Retno LP Marsudi said the solution is strategic trust.
With Indonesia’s Presidency of the G20, and ASEAN chairmanship next year, the country is playing a big role in leading high level dialogue and needs to make bold moves in order to bridge differences between states, according to Analyst Riza Noer Arfani. The G20 cannot afford to fail in advancing its agenda and needs to lead in resolving current pressing issues, said Guterres. With the G20 Summit fast approaching, it is a matter of time before we see the culmination of months of dialogue and discussion under Indonesia’s leadership.
Biden Says Covid-19 Pandemic is Over, Indonesia Awaits WHO Decision
US President Joe Biden has said the Covid-19 pandemic is over, following a statement by the World Health Organization (WHO) that the pandemic nearing the end. President Biden said the virus is still around and his administration continues to do a lot of work to handle it. Despite the President’s announcement, the country’s seven-day average of Covid-19 deaths remains at over 400. Administration officials said policies will not change soon and the public health emergency will still be imposed.
Meanwhile, the Indonesian government is waiting for the WHO to revoke the Covid-19 pandemic status, said Head of the Communication and Public Services Bureau at the Ministry of Health Siti Nadia Tarmizi. She added that Indonesia must remain vigilant and continue monitoring the situation, and that given the high number of new daily cases and low booster vaccine coverage, the country might experience another Covid-19 wave.
Bank Indonesia (BI) is tipped to raise its benchmark interest rate, the BI 7-Day Reverse Repo Rate, during its Board of Governors’ Meeting which begins today, Sept 21. Economists believe BI will raise the rate by 25 bps to 4.00 percent, similar to the 25 bps increase last month. According to the Director of the Center of Economics and Law Studies (Celios) Bhima Yudhistira, triggers for the rise include the US Central Bank’s aggressive plan to raise interest rates again, fluctuations in the rupiah exchange rate, and the impact of rising fuel prices.
ATALIAN Global Services Indonesia plans to employ 5,000 new staff across the country as part of its efforts to become market leader in the facility management (FM) industry. The company has implemented a new Human Resources Information System (HRIS), which integrates the payroll, and monitors employees’ performance, such as attendance, punctuality, and operational procedure compliance. It has also implemented technology transformation in several functions of its business, including a 24/7 Command Centre for employees and clients within its Innovation Space. The aim is to combine people and technology by connecting integrated FM with physical services and online operations.
The AmCham Office is transitioning back to the office. We are still maximizing online meetings, using the Zoom platform, but starting to have in-person meetings. You will be notified of the meetings as they are scheduled.
What is Your Company Doing on COVID-19?
Please let us know what measures your company may be taking in the form of donations and other assistance to help Indonesia during this time of confusion and concern. Contact [email protected] with your news. We would like to publicize the ways that our AmCham companies are pitching in.
Stay safe, call a doctor if you have a high fever, cough, or difficulty breathing. Stay healthy above all else.
AmCham Update is AmCham's regular newsletter on developments related to the pandemic crisis and other issues in Indonesia. It is edited by AmCham Managing Director A Lin Neumann and written by the AmCham Staff. Paul L Goddard is the Managing Editor.