Data Center Regulations in Indonesia: Regulations, Security Standards, and Best Practices for Companies

Understanding data center regulations in Indonesia is not just a matter of complying with legal requirements. More than that, compliance helps companies build trust, minimize the risk of data leaks, and ensure that systems continue to operate even in the event of disruptions.

This article provides a comprehensive guide to the regulatory framework, data center security standards, and best practices for implementation in a corporate environment.

What Is a Data Center and Why Is It Important in Modern Data Management?

A data center is a physical or virtual facility used to store, manage, process, and secure business data and applications. It contains servers, networks, backup systems, firewalls, cooling systems, and 24/7 monitoring systems.

In the context of Indonesian regulations, data centers are closely related to Electronic System Operators (PSE), both in the public and private sectors, which are responsible for the security and privacy of the data they manage.

Data centers are widely used by the following sectors:

• Finance and fintech
• E-commerce and distribution
• Telecommunications and digital media
• National and multinational corporations
• Digital-based government systems

With these crucial functions, data centers play a central role in maintaining operational reliability and customer trust.

Government Regulatory Framework and Regulations on Data Centers in Indonesia

Regulations are designed to ensure that data is managed securely, transparently, and in accordance with legal provisions. This framework consists of laws and technical operational standards.

1. Law No. 27 of 2022 concerning Personal Data Protection (PDP Law)

The PDP Law is the main legal basis for the protection of individual data in Indonesia.

Key points that companies must understand:

• Data collection must be based on the consent of the data owner.
• Companies are required to protect data through technical and procedural controls,
• Data breaches must be reported to the regulator within a maximum of 72 hours,
• Data owners have the right to request the deletion or transfer of data,
• Violations may result in administrative fines or even criminal penalties.

The PDP Law encourages companies to implement transparent and accountable privacy governance.

2. Government Regulation No. 71 of 2019 concerning the Implementation of Electronic Systems and Transactions (PSTE)

This regulation governs the mechanism for managing electronic systems and data storage.

This regulation ensures that national strategic data remains under state control and law.

3. Ministry of Communication and Information Technology Regulation No. 4 of 2016 concerning Data Center Management Systems

This regulation provides technical operational guidelines for data centers, including:

The goal is to ensure that the data center remains operational in any situation.

Read also: How to Protect Your Data from Natural Disasters and Cyber Attacks in Indonesia

4. Cyber Security Guidelines by BSSN

BSSN plays a role in ensuring national cybersecurity resilience.

Recommended security standards:

• Firewall, IDS/IPS, and network segmentation
• Data encryption during transit and storage
• Security Operation Center (SOC) for 24/7 monitoring
• Incident Response Plan

Cybersecurity must be proactive, measurable, and continuous.

5. International Standards Supporting Operational Credibility

Many companies adopt international standards to enhance business partner trust:

This standard helps build a reputation as a reliable and controlled organization.

Data Sovereignty and Reasons for Determining Data Center Location

In recent years, the concept of data sovereignty has become a major focus for governments and industry players. Data sovereignty refers to the principle that the data of citizens and institutions within a country must be under the protection of that country's laws.

When data is stored overseas, it falls under the jurisdiction of the country where the data is stored. This raises concerns regarding:

• Government access in emergencies
• Investigations related to fraud or cybercrime
• Risks of differing law enforcement practices
• Uncertainty regarding other countries' privacy policies

This is why PP No. 71/2019 emphasizes:

• Strategic data such as government administration data, national security data, and public system data must remain in Indonesia.
• For the private sector, data placement abroad is still permitted, but managers must guarantee equal access to audits, availability, and protection.

The decision to locate data centers is no longer merely a technical consideration, but a leadership and long-term data governance decision.

Read also: Understand the 5 Network Security Principles That Must Be Followed

Secure and Trusted Data Management Solutions with Cloudmatika

Managing a secure and compliant data center requires a strong technological foundation, measurable governance, and a trusted service provider partner. Cloudmatika is an Indonesian Cloud Service Provider that offers infrastructure, network, and security solutions that meet international standards and support compliance with national regulations.

For storage, collaboration, and data distribution needs between teams and branches, Cloudmatika provides FileBox, a secure, scalable, and easy-to-use cloud storage service, allowing companies to manage important files without the risk of data loss or access disruption.