Comparative study of personal data protection regulations in Indonesia, Hong Kong and Malaysia

Abstract

Purpose

The purpose of this paper is two-fold: to explore the legal issue of the importance of personal data protection in the digital economy sector and to propose a legal framework for personal data protection as a consumer protection strategy and accelerate the digital economy.

Design/methodology/approach

This study is legal research. The research approach used was the comparative approach and statute approach. The legal materials used are all regulations regarding personal data protection that apply in Indonesia, Hong Kong and Malaysia. The technique of collecting legal materials is done by using library research techniques.

Findings

The value of Indonesia’s digital economy is the biggest in the Southeast Asia region, but data breach is still a big challenge to face. The Indonesian Consumers Foundation (Yayasan Lembaga Konsumen Indonesia) recorded 54 cases of a data breach in e-commerce, 27 cases in peer-to-peer lending and 5 cases in electronic money. Based on the results of a comparative study with Hong Kong and Malaysia, Indonesia has yet no specific Act that comprehensively regulates personal data protection. Indonesia also does not have a personal data protection commission. Criminal sanctions and civil claims related to data breaches have not yet been regulated.

Research limitations/implications

This study examines the data breach problem in the Indonesian digital economy sector. However, the legal construction of personal data protection regulations is built on the results of a comparative study with Hong Kong and Malaysia.

Practical implications

The results of this study can be useful for constructing the ideal regulation regarding the protection of personal data in the digital economy sector.

Social implications

The results of the recommendations in this study are expected to develop and strengthen the protection of personal data in the Indonesian digital economy sector. Besides aiming to prevent the misuse of personal data, the regulation aims to protect consumers and accelerate the growth of the digital economy.

Originality/value

Indonesia needs to create a personal data protection act. The act should at least cover such issues: personal data protection principles; types of personal data; management of personal data; mechanism of personal data protection and security; commission of personal data protection; transfers of personal data; resolution mechanism of personal data dispute and criminal sanctions and civil claims.

Citation

Sudarwanto, A.S. and Kharisma, D.B.B. (2022), "Comparative study of personal data protection regulations in Indonesia, Hong Kong and Malaysia", Journal of Financial Crime, Vol. 29 No. 4, pp. 1443-1457. https://doi.org/10.1108/JFC-09-2021-0193