Data Processing Addendum Template for Indonesia

A Data Processing Addendum is a specialized contract that governs how personal data is handled when you engage third-party service providers in Indonesia. This document is mandatory under Indonesia's Personal Data Protection Law and serves as a critical supplement to your main service agreements, ensuring that all parties understand their data protection obligations and responsibilities.

When do you need this document?

You need a Data Processing Addendum whenever your company engages external service providers to process personal data on your behalf. This includes cloud storage providers, payroll processors, customer service outsourcing companies, marketing agencies handling customer data, and IT support services with access to employee information. The document is particularly crucial for international service arrangements, as Indonesia's data localization requirements under Government Regulation No. 71 of 2019 impose specific restrictions on cross-border data transfers. Companies in regulated sectors such as finance, healthcare, and telecommunications face additional compliance requirements that must be reflected in their DPA.

Key legal considerations

Your Data Processing Addendum must clearly define the roles and responsibilities of data controllers and processors, specifying the categories of personal data being processed and the permitted processing activities. The document should include robust security measures aligned with Indonesian regulatory standards, including technical and organizational safeguards required under Ministry of Communication and Information Technology Regulation No. 20 of 2016. Data breach notification procedures must comply with the PDP Law's requirement for timely reporting to both data subjects and the Personal Data Protection Office. The agreement should address data retention periods, deletion procedures, and audit rights to ensure ongoing compliance. Sub-processor arrangements require careful consideration, as you remain liable for any third-party processing activities conducted on your behalf.

Legal requirements in Indonesia

Indonesia's Personal Data Protection Law No. 27 of 2022 establishes comprehensive requirements for data processing agreements, including mandatory provisions for data subject rights, consent mechanisms, and lawful bases for processing. Your DPA must comply with data localization requirements that mandate certain categories of personal data be stored and processed within Indonesia's borders. The agreement should reference the Electronic Information and Transactions Law No. 11 of 2008 for electronic signature validity and specify dispute resolution mechanisms under Indonesian jurisdiction. Companies processing sensitive personal data must implement additional safeguards and may require Data Protection Officer involvement in the agreement's execution. Cross-border data transfer provisions must align with Indonesia's adequacy decisions and standard contractual clauses, ensuring that international data flows maintain equivalent protection standards to those required domestically.