Intra Group Data Transfer Agreement Template for Indonesia
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What is a Intra Group Data Transfer Agreement?
The Intra Group Data Transfer Agreement is essential for organizations operating multiple entities in Indonesia that need to share data within their corporate structure. This document becomes necessary when companies need to establish a formal framework for internal data transfers while ensuring compliance with Indonesian data protection requirements, particularly the PDP Law and related regulations. It addresses key aspects such as data security, processing limitations, breach notifications, and audit requirements. The agreement is particularly important following the implementation of stricter data protection regulations in Indonesia and should be regularly reviewed to ensure continued compliance with evolving legal requirements. It serves as a crucial tool for demonstrating regulatory compliance while enabling efficient business operations across group entities.
About the Intra Group Data Transfer Agreement
An Intra Group Data Transfer Agreement is a specialized legal document that governs the sharing of data between related companies within the same corporate group in Indonesia. Under Indonesia's Personal Data Protection Law (PDP Law) and supporting regulations, companies must establish formal frameworks for data transfers, even between affiliated entities, to ensure compliance with stringent data protection requirements.
When do you need this document?
You need this agreement when your corporate group operates multiple entities in Indonesia that regularly share personal data, business information, or operational data. This includes scenarios where a parent company transfers employee records to its Indonesian subsidiary, when shared service centers process payroll data for multiple group companies, or when regional headquarters consolidate reporting data from local affiliates. The agreement becomes particularly crucial when your group includes international entities that transfer data to or from Indonesian companies, as cross-border data transfers face additional regulatory scrutiny under the PDP Law.
Key legal considerations
The agreement must address several critical legal requirements under Indonesian law. Data security measures must comply with Government Regulation No. 71 of 2019, which mandates specific technical and organizational safeguards for electronic data processing. You must clearly define the purposes for which data can be processed and transferred, ensuring alignment with the original consent obtained from data subjects. The agreement should establish incident response procedures, including breach notification requirements that comply with PDP Law timelines. Additionally, you must address data retention periods, deletion procedures, and audit rights to demonstrate ongoing compliance. Corporate governance aspects under Law No. 40 of 2007 regarding Limited Liability Companies must also be considered, particularly regarding board approvals and related party transaction disclosures.
Legal requirements in Indonesia
Indonesia's PDP Law requires that data transfers between group entities have a lawful basis and appropriate safeguards. You must ensure that all participating entities are properly registered and comply with local data localization requirements where applicable. The agreement must specify technical security measures, including encryption standards and access controls, that meet Indonesian regulatory expectations. For international group entities, you may need to establish adequacy findings or implement standard contractual clauses approved by Indonesian authorities. The document should also address supervisory authority cooperation, particularly with Indonesia's data protection authority, and establish procedures for responding to regulatory inquiries or investigations. Regular compliance reviews and updates to the agreement are essential as Indonesian data protection regulations continue to evolve.
GOVERNING LAW
Applicable law
This Intra Group Data Transfer Agreement is drafted to comply with Indonesia law. Key legislation includes:
Government Regulation No. 71 of 2019 on Electronic Systems and Transactions: Regulates electronic system operations and transactions, including requirements for data center and disaster recovery center locations, which is relevant for intra-group data transfers.
Law No. 40 of 2007 regarding Limited Liability Companies: Provides the legal framework for corporate relationships and intra-group transactions between Indonesian companies, including corporate governance requirements.
Minister of Communication and Informatics Regulation No. 20 of 2016: Specific regulations on personal data protection in electronic systems, including requirements for data transfer and processing.
Indonesian Civil Code (KUHPerdata): Provides the basic framework for contract law in Indonesia, including requirements for valid agreements and contractual obligations.
Bank Indonesia Regulation No. 9/15/PBI/2007: If the data transfer involves financial institutions, this regulation on risk management in the use of information technology by commercial banks must be considered.
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