Third Party Data Processing Agreement Template for Indonesia
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What is a Third Party Data Processing Agreement?
A Third Party Data Processing Agreement is essential when an organization (the data controller) engages another party (the data processor) to process personal data on its behalf in Indonesia. This document has become particularly important following the implementation of Indonesia's Personal Data Protection Law (Law No. 27 of 2022), which introduces specific requirements for data processing relationships. The agreement should be used whenever personal data processing is outsourced, whether for cloud services, payment processing, HR management, or other data handling activities. It must address specific Indonesian regulatory requirements including data localization rules, cross-border transfer restrictions, and mandatory security measures. The document typically includes detailed provisions on data protection obligations, security requirements, breach notification procedures, and audit rights, ensuring compliance with both local and international data protection standards.
About the Third Party Data Processing Agreement
When your organization needs to outsource data processing activities in Indonesia, you must establish clear legal protections through a comprehensive data processing agreement. This contract serves as the foundation for compliant data handling relationships under Indonesia's evolving privacy landscape, protecting both your business interests and the personal data of Indonesian citizens.
When do you need this document?
You require a Third Party Data Processing Agreement whenever you engage external service providers to handle personal data on your behalf. This includes partnerships with cloud service providers for data storage, payment processors handling customer transactions, HR service companies managing employee information, or marketing agencies processing customer databases. The agreement is also essential when working with international service providers who may process Indonesian personal data outside the country's borders. Following Indonesia's PDP Law implementation, this document has become legally mandatory for establishing compliant data controller-processor relationships, regardless of the size of your organization or the volume of data being processed.
Key legal considerations
Your agreement must clearly define the roles and responsibilities of each party, with the data controller maintaining ultimate responsibility for lawful processing while the processor commits to following specific instructions. Essential clauses include detailed data security measures, mandatory breach notification procedures within 72 hours, and comprehensive audit rights allowing you to verify compliance. The contract should specify the exact types of personal data being processed, the purposes for processing, and the duration of the processing relationship. You must also include provisions for data deletion or return upon contract termination, sub-processor management requirements, and liability allocation for potential data breaches. The agreement should address data subject rights fulfillment, ensuring that individuals can exercise their rights to access, correction, and deletion of their personal data.
Legal requirements in Indonesia
Under Law No. 27 of 2022, your agreement must comply with specific Indonesian requirements that go beyond general data protection principles. Data localization provisions require certain categories of personal data to be stored and processed within Indonesia's borders, and your contract must explicitly address these geographical restrictions. Cross-border data transfer clauses need to meet adequacy requirements or include appropriate safeguards such as standard contractual clauses. The processor must implement technical and organizational measures that meet Indonesian cybersecurity standards, including those outlined in Government Regulation No. 71 of 2019. Your agreement should also reference compliance with Minister of Communication and Informatics Regulation No. 20 of 2016 regarding electronic systems security. Additionally, the contract must accommodate Indonesia's mandatory data protection impact assessment requirements for high-risk processing activities and ensure alignment with sector-specific regulations that may apply to your industry.
GOVERNING LAW
Applicable law
This Third Party Data Processing Agreement is drafted to comply with Indonesia law. Key legislation includes:
Government Regulation No. 71 of 2019 on Electronic Systems and Transactions: Regulates the implementation of electronic systems and transactions, including requirements for electronic system operators and data center locations
Minister of Communication and Informatics Regulation No. 20 of 2016: Regulation on Personal Data Protection in Electronic Systems, providing specific requirements for protecting personal data in electronic systems
Law No. 11 of 2008 on Electronic Information and Transactions (ITE Law): Framework law for electronic transactions and systems in Indonesia, including provisions on data protection and cybersecurity
Minister of Communication and Informatics Regulation No. 4 of 2016: Regulation on Information Security Management Systems, setting standards for information security in electronic systems
Bank Indonesia Regulation No. 23/6/PBI/2021: Relevant if processing involves payment system data, providing specific requirements for payment system data processing and protection
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