Cloudmatika Attends Joint Meeting Responding to the Proposed Amendment of PP 82/2012

The Indonesian Cloud Computing Association (ACCI) is an association for players and observers of Cloud Computing in Indonesia, with membership open to Cloud Providers (IaaS, PaaS, SaaS), companies using Cloud Computing services, educational institutions, professionals, and students. ACCI, which had previously officially requested a copy of the draft proposal for the amendment of PP 82/2012 from the Ministry of Communication and Informatics (KEMKOMINFO), subsequently shared it with ACCI member Cloud Providers who were interested in studying it and wished to provide feedback regarding the proposed regulation.

After reviewing the draft copy of the proposed amendment to PP 82/2012, ACCI held a joint meeting on Thursday, May 3, 2018, to jointly formulate ACCI’s official response. It was noted that 9 Cloud Provider members of ACCI participated in providing feedback on the matter, namely:

• CBNCloud
• Cloudmatika
• Datacomm Cloud
• Indonesian Cloud
• Lintasarta
• Microsoft Indonesia
• Telkomtelstra
• VibiCloud
• Zettagrid Indonesia

Cloudmatika, as an active member of ACCI, participated in providing feedback during the joint meeting to support the government’s plan to amend PP 82/2012. The goal is to ensure the amendments align with providers, players, and observers of Cloud Computing in Indonesia, and to make cloud users in Indonesia feel secure regarding their data.

We understand that the draft proposal for the amendment of PP 82/2012 is currently at the Ministry of Law and Human Rights for harmonization. For this reason, based on the outcomes of the joint meeting, these 9 points of mutual agreement will be submitted to KEMKOMINFO, with copies sent to the President of the Republic of Indonesia and several related ministries, in the hope that they can serve as valuable input before being enacted.

The following are the 9 official responses from ACCI members, channeled through ACCI, which have been submitted to the government today:

Article 1

In the draft proposal for the amendment of PP 82/2012, Article 1, Paragraph 27 states that Electronic Data is classified into 3 (three) categories:

1. Strategic Electronic Data
2. High-Risk Electronic Data
3. Low-Risk Electronic Data

We believe that while the definition and classification of Strategic Electronic Data are clear enough, the classifications of High-Risk Electronic Data and Low-Risk Electronic Data must be further clarified. This clarity is essential to ensure that the creation of Technical Regulations in each sector (as found in Article 83L of the draft proposal for the amendment of PP 82/2012) remains distinct, thereby providing legal certainty and clarity for business entities.

Articles 17, 83M, 83N

We agree that Strategic Electronic Data must be stored, processed, and managed within the territory of Indonesia. Furthermore, we suggest that High-Risk Electronic Data should also be required to reside within Indonesian territory, though it may have duplicates outside of Indonesia. This requirement is necessary to guarantee data sovereignty and to facilitate law enforcement in Indonesia.

Article 83K

In the elucidation of Article 83K of the draft proposal for the amendment of PP 82/2012, the terms “Indonesian Citizen Data” and “Population Data” are used. We suggest that the definition or distinction between the two be clarified—specifically, whether “Population Data” also constitutes “Indonesian Citizen Data” and vice versa.

Article 5

We appreciate the changes in this article that mandate Electronic System Operators (PSE) to register. However, we provide input that this PSE requirement should also apply to foreign Cloud Computing providers and Over-The-Top (OTT) players conducting business operations and/or selling services in Indonesia. They must establish a legal business entity (Badan Usaha) in Indonesia and record their transactions through that local entity. This measure is crucial to assist the government in law enforcement and to ensure state revenue from taxes on electronic transactions.

Electronic System Operators (PSE) must have dedicated systems regarding their readiness to assist the Government and/or authorized parties within Indonesian jurisdiction whenever needed for law enforcement purposes.

The interests of every entity within the scope of Indonesian legal jurisdiction must be protected based on Article 26 of Law Number 11 of 2008 concerning Electronic Information and Transactions, which dictates that the use of any information through electronic media concerning a person’s personal data must be done with the consent of the individual concerned. Therefore, we suggest that the Government must require every PSE to include information regarding the storage, usage, and traffic of personal data as a form of consent, incorporated into the user terms and conditions for using the PSE’s services.

We also suggest that the definitions relating to the terms “Agency” (Instansi) and “Institution” (Institusi) in the draft proposal for the amendment of PP 82/2012 be clarified. As seen in other laws and regulations, these two terms often overlap, whereas, in legal certainty, a precise definition is highly significant for implementation in the field.

The Cloud Computing industry and business in Indonesia will also heavily depend on the implementation of tax regulations, even though this falls outside the scope of the draft proposal for the amendment of PP 82/2012. We suggest that tax implementation must be fair and equal between local providers and foreign OTT global providers.

Based on the inputs mentioned above, we hope that the draft proposal for the amendment of PP 82/2012 will be thoroughly refined before being enacted, especially given the feedback we have submitted. We believe that the implementation of the amended PP 82/2012 will have a highly significant impact on the development of the Cloud Computing and Digital Industries in Indonesia.

These are the 9 points of agreement we have submitted, and we hope they will be taken into consideration prior to enactment. We remain highly open and enthusiastic if the government, in this case, the relevant institutions and/or agencies, invites us as ACCI members to discuss the proposed regulatory improvements.