Third Party Sharing Agreement Template for Indonesia
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What is a Third Party Sharing Agreement?
The Third Party Sharing Agreement is essential for organizations operating in Indonesia that need to share data with external parties while maintaining compliance with local regulations, particularly the Personal Data Protection Law (PDP Law) and Electronic Information and Transactions Law. This document is typically used when companies need to establish formal arrangements for sharing customer data, operational data, or other sensitive information with service providers, business partners, or other third parties. It encompasses critical elements such as data protection measures, technical requirements, compliance obligations, and risk allocation mechanisms. The agreement is particularly important given Indonesia's strict data protection regime and the need to ensure proper safeguards for data sharing activities. It should be customized based on the type of data being shared, the industry sector, and specific regulatory requirements applicable to the parties involved.
About the Third Party Sharing Agreement
A Third Party Sharing Agreement is a critical legal contract that enables organizations in Indonesia to share data with external parties while maintaining compliance with the Personal Data Protection Law (PDP Law) and other applicable regulations. This document establishes clear terms for data transfer, processing responsibilities, and protection measures that all parties must implement to safeguard shared information.
When do you need this document?
You need a Third Party Sharing Agreement when your organization plans to share personal data, customer information, or operational data with external service providers, business partners, or other third parties. This includes arrangements with cloud service providers for data storage, analytics companies for business intelligence, financial institutions for payment processing, or healthcare providers for patient data sharing. The agreement is essential when engaging telecommunications providers for communication services, insurance companies for risk assessment, or government agencies for regulatory compliance. Market research companies requiring customer data access and e-commerce platforms sharing transaction data also require this formal documentation to ensure legal compliance under Indonesian law.
Key legal considerations
Your agreement must clearly define the roles and responsibilities of data controllers and processors, ensuring compliance with the PDP Law's requirements for lawful data processing. Include specific provisions for data subject consent, data minimization principles, and purpose limitation to prevent unauthorized use of shared information. Address cross-border data transfer requirements if data will be processed outside Indonesia, including adequacy decisions and appropriate safeguards. Establish clear data retention periods, deletion procedures, and breach notification protocols that align with Indonesian regulatory requirements. Include comprehensive liability and indemnification clauses to protect against potential data protection violations and associated penalties.
Legal requirements in Indonesia
Under the Personal Data Protection Law (PDP Law), your agreement must demonstrate lawful basis for data processing and sharing, with clear documentation of data subject consent where required. Ensure compliance with the Electronic Information and Transactions Law by including provisions for electronic document validity and digital signature requirements. Your agreement must address data localization requirements and any restrictions on cross-border data transfers as specified in Government Regulation No. 71 of 2019. Include consumer protection obligations under Law No. 8 of 1999, particularly when sharing customer data that affects consumer rights. Establish audit rights and compliance monitoring procedures to demonstrate ongoing adherence to Indonesian data protection standards and facilitate regulatory inspections when required.
GOVERNING LAW
Applicable law
This Third Party Sharing Agreement is drafted to comply with Indonesia law. Key legislation includes:
Law No. 11 of 2008 on Electronic Information and Transactions (EIT Law): Regulates electronic transactions and information, including the validity of electronic documents and signatures, which is crucial for digital data sharing arrangements
Government Regulation No. 71 of 2019 on Electronic Systems and Transactions: Implementing regulation for the EIT Law, providing detailed requirements for electronic system operations and data handling
Law No. 8 of 1999 on Consumer Protection: Provides protection for consumers whose data might be shared, ensuring transparent practices and fair treatment
Indonesian Civil Code (KUHPerdata): Provides the basic framework for contracts and agreements, including principles of valid contracts, rights, and obligations of parties
OJK Regulation No. 13/POJK.02/2018: Specific regulation for financial sector data sharing, relevant if the agreement involves financial services companies
Minister of Communication and Informatics Regulation No. 20 of 2016: Regulation on Personal Data Protection in Electronic Systems, providing specific requirements for electronic data protection
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