Industry concerns over data localization policy unfounded, says DICT undersecretary

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Indonesia Berita Berita

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Several foreign chambers and IT industry groups have recently voiced their worries over the potential implementation of restrictive data localization policies. They claim such policies could adversely affect the Information Technology and Business Process Management (IT-BPM) sector. However, Jeffrey Dy, Undersecretary of the Department of Information and Communications Technology (DICT), refuted these concerns, stating that no draft executive order on the matter has been submitted.

Dy clarified that an article reporting on a draft executive order for data localization was based on false information."There was no submitted draft executive order as far as DICT is concerned," he said."The Private Sector Advisory Council consulted us in April 2023 regarding this draft executive order, and it was agreed to discuss the details more thoroughly. As a result, the draft was never submitted to the Office of the President .

Dy added that the DICT's stance is to support cross-border data flows and to maintain an open and enabling policy on data governance. This counters the concerns raised by industry groups that a potential policy change could disrupt the IT-BPM sector.

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