Sub Processing Agreement Template for Indonesia

A Sub Processing Agreement is a critical legal document that governs the relationship between a primary data processor and a third-party sub-processor under Indonesian data protection law. This contract ensures that when you delegate data processing activities to another party, both entities remain compliant with Indonesia's comprehensive data protection framework, including the Personal Data Protection Law and related regulations.

When do you need this document?

You need a Sub Processing Agreement whenever your organization, acting as a data processor, engages external parties to handle personal data on your behalf. This includes scenarios where you outsource cloud storage services, engage analytics providers, use third-party customer support platforms, or contract specialized data processing services. The agreement is particularly essential when working with foreign sub-processors, as Indonesian law requires specific provisions for cross-border data transfers and local representative appointments. You also need this document when expanding your processing operations through partnerships or when regulatory changes require updated contractual frameworks between processing parties.

Key legal considerations

The agreement must address several critical legal elements to ensure compliance with Indonesian data protection laws. Data localization requirements under Government Regulation No. 71 of 2019 must be clearly specified, particularly for sensitive personal data that must remain within Indonesian territory. The contract should establish mandatory data breach notification timeframes, requiring sub-processors to report incidents within 72 hours to the primary processor. Security measures must align with Indonesian standards, including encryption requirements, access controls, and audit procedures. The agreement must also define liability allocation between parties, ensuring that data subjects can seek redress through the established processing chain. Additionally, the contract should address consent mechanisms specific to Indonesian requirements and establish clear procedures for data subject rights fulfillment.

Legal requirements in Indonesia

Under Indonesian law, Sub Processing Agreements must comply with specific regulatory requirements that differ from international standards. The Personal Data Protection Law requires explicit written agreements before any sub-processing can commence, with detailed provisions for data handling limitations and purpose restrictions. Government Regulation No. 71 of 2019 mandates that foreign sub-processors must appoint local representatives and comply with Indonesian jurisdiction requirements. The agreement must incorporate specific termination clauses that ensure data return or destruction upon contract completion. Indonesian contract law under the Civil Code requires clear identification of all parties, including parent companies and local representatives where applicable. The document must also address specific Indonesian requirements for data controller notification, ensuring that the original data controller maintains visibility over the entire processing chain and can fulfill their obligations under the PDP Law.