Using AWS Services in Indonesia

AWS customers in Indonesia can now, without regulatory uncertainty, fully adopt the benefits of the AWS cloud - one of the most flexible, reliable, and secure cloud computing environments available today.

This positive and highly anticipated clarification is a result of Government Regulation 71 Concerning the Operation of Electronic System and Transaction (GR 71), which amends the existing Government Regulation 82 of 2012 Concerning Electronic System and Transaction Operation (GR 82). GR 71 is effective as of 10 October 2019.

Most significantly, GR 71 clarifies that Electronic System Operators in Indonesia can transfer or store data offshore. Electronic System Operators are any entities in Indonesia that manage or operate an electronic system, and can be either “private scope” or “public scope”.

“Private scope” Electronic System Operators can store or process all types of data outside Indonesia, including by using an AWS Region outside Indonesia. “Private scope” is defined generally and covers all businesses in Indonesia other than those that are a “State Administrative Agency” (i.e. legislative, executive or judicial institution or institution formed by legislation in Indonesia).

“Public Scope” Electronic System Operators (i.e. State Administrative Agencies) can store or process their data offshore, including by using an AWS Region outside Indonesia, during the two-year transition period starting from 10 October 2019. After October 2021, Public Scope Electronic System Operators will need approval from the Minister of Communications and Information Technology (KOMINFO).

For more information on GR 71, please see the article issued by Hadiputranto, Hadinoto & Partners at https://insightplus.bakermckenzie.com/bm/mergers-acquisitions_5/indonesia-ia-cepa-impact-on-data-localization-and-offshore-data-transfers-in-indonesia.

Financial services institutions regulated by the Indonesian Financial Services Authority (OJK) or Bank of Indonesia (BI) could be subject to other applicable regulations that impose additional data storage and management requirements, which may include storing certain types of data onshore in Indonesia. However, AWS understands that these regulations are likely to be reviewed in light of GR 71.

There is no formal requirement for private mining companies regulated by the Ministry of Energy and Mineral Resources (ESDM) to store or manage their data onshore in Indonesia. Oil and gas companies that have entered into a Production Sharing Contract (PSC) with the State for upstream oil and gas activities are typically required to have a data center and disaster recovery center onshore in Indonesia, and will need to obtain ESDM’s prior approval to transfer confidential data relating to their upstream oil and gas activities offshore.

AWS has announced that it is working on the AWS Asia Pacific (Jakarta) Region in Indonesia, based in Greater Jakarta and comprised of three Availability Zones, which will give AWS customers broader options for managing their data both onshore in Indonesia and offshore. The AWS Asia Pacific (Jakarta) Region will expand the wide selection of geographic regions that are part of the AWS Global Infrastructure available to AWS customers to deploy their application workloads.

AWS customers retain complete control and ownership over their data and decide in which AWS Region their data will be physically located, making it easy to meet regional compliance and data residency requirements. Each AWS Region has multiple Availability Zones and data centers. Typically, customers who care about the availability and performance of their applications want to deploy these applications across multiple Availability Zones in the same Region for fault tolerance and low latency. In addition to replicating applications and data across multiple data centers in the same Region using Availability Zones, customers can also choose to increase redundancy and fault tolerance further by replicating data between geographic Regions.