By Hendra Suryakusuma, Chairman of IDPRO
The Urgency of Data Sovereignty
As Chairman of IDPRO (Indonesian Data Center Provider Organization), I have witnessed firsthand how data has become the lifeblood of our nation’s economy, security, and innovation. In today’s digital world, data sovereignty is no longer just an option—it is a patriotic imperative.
Indonesia stands at a crossroads. We can either secure our digital independence by reinforcing on-shoring data regulations, or we can continue to expose ourselves to the dangers of offshore data storage—a risk that has already proven costly.
The June 2024 ransomware attack on Indonesia’s National Data Centre was a stark wake-up call. Over 40 government agencies were disrupted, immigration services came to a halt, and airport operations faced chaos. The attackers demanded a $8 million ransom, exposing the vulnerabilities in our current data policies (Source: Reuters).
This crisis was not just a cybersecurity failure—it was a national security failure. It is time to take back control of our data.
The Risks of Losing Control Over Our Data
Indonesia’s journey toward data sovereignty began with PP No. 82/2012, which mandated local data storage for public service electronic systems. This regulation strengthened our digital infrastructure and cybersecurity.
However, in 2019, PP No. 71 weakened these protections, allowing offshore data storage. This decision has left us vulnerable to cyberattacks, foreign exploitation of our data, and the loss of economic opportunities. The June 2024 attack proved that we can no longer afford this risk.
If we fail to act now, we risk:
⚠ More cyberattacks that could cripple essential government and business services.
⚠ Loss of control over our AI future, as global tech giants extract value from our data.
⚠ Missed economic opportunities, as foreign data centers profit while Indonesia loses out.
The Global AI Arms Race: Deepseek vs. OpenAI
At the heart of the data sovereignty debate is the global AI arms race. AI is transforming industries, from healthcare and finance to defense and logistics. The ability to develop, train, and deploy AI depends on secure, localized, and well-regulated data infrastructure.
Technologies like Deepseek and OpenAI are leading this race.
- OpenAI is known for its generalized creativity and adaptability.
- Deepseek, on the other hand, is built for precision and industry-specific applications, making it a powerful tool for data security and operational agility.
To compete in this AI-driven economy, Indonesia must control its own data. Otherwise, we will become mere consumers of AI, rather than leaders in its development.
Lessons from the World: Why Data Localization Works
Nations around the world have recognized that data localization is key to both security and economic growth.
🌏 China has enforced strict data sovereignty laws, fueling its rise as a global technology powerhouse.
🇪🇺 The EU’s GDPR has ensured European data remains protected while fostering a thriving digital economy.
🇮🇳 India’s push for data localization has helped its digital economy grow while reducing dependence on foreign infrastructure.
Indonesia must follow their lead and reclaim control over its digital future.
The Economic Potential of Data Localization
Beyond security, on-shoring data regulations could unleash massive economic opportunities for Indonesia.
According to IDPRO’s analysis, achieving a 1-gigawatt data center industry could generate:
💰 Rp 1.7 trillion in monthly revenue for PLN (Indonesia’s state electricity company).
This is just one example of how data localization can fuel economic growth, create high-value jobs, and position Indonesia as a regional digital powerhouse.
Key Benefits of Data Localization
✅ Stronger Cybersecurity: Reduces risks of cyberattacks like the 2024 ransomware incident.
✅ National Sovereignty: Ensures Indonesia controls its own digital infrastructure.
✅ Economic Growth: Creates jobs, boosts local businesses, and strengthens the digital economy.
✅ Competitive Advantage: Positions Indonesia as a key player in the Asia-Pacific digital market.
IDPRO’s Call to Action: Revising PP No. 71/2019
As Chairman of IDPRO, I strongly advocate for revising PP No. 71/2019 and restoring mandatory on-shoring data regulations. We cannot afford to let foreign entities control our most valuable digital asset—our data.
Our Core Beliefs:
🇮🇩 Data Sovereignty Is Non-Negotiable – Indonesia must protect its digital independence.
📈 Economic Growth Is Achievable – Data localization can drive massive investment and innovation.
🛡 Cybersecurity Must Be Strengthened – We cannot risk another national data crisis.
Securing Indonesia’s Digital Future—Together
The future of Indonesia’s digital economy depends on the decisions we make today. By implementing stronger data localization policies, we can:
✅ Protect our national sovereignty in the digital era.
✅ Fortify our cybersecurity against evolving threats.
✅ Position Indonesia as a regional leader in AI and cloud computing.
This is our moment to secure Indonesia’s digital future. Let’s take back control of our data, strengthen our national defenses, and build a thriving digital economy that benefits all Indonesians.
🇮🇩 As IDPRO’s Chairman, I am committed to leading this charge. Are you? 🇮🇩
Sources:
- Reuters (2024) – "Ransomware attack disrupts Indonesia’s National Data Centre."
- OECD Report (2023) – "The Economic Impact of Data Localization."
- IDPRO Internal Analysis (2025) – "The Economic Potential of On-Shoring Data Centers."
- BSSN – "Cybersecurity Insights for Indonesia."
