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A Data Processing Agreement sets clear rules between companies that share personal data in Indonesia. When your business handles customer information on behalf of another company, this contract spells out exactly how you'll protect and use that data under the Personal Data Protection Law (PDP Law).

Think of it as a safety manual for data handling - it covers security measures, data storage limits, and what happens if there's a breach. For example, if you run a payroll service for other businesses, you'll need this agreement to show how you'll safeguard employee information. It also helps both parties stay compliant with strict Indonesian privacy regulations and avoid hefty penalties.

You need a Data Processing Agreement when outsourcing any personal data handling in Indonesia. This includes common scenarios like using cloud storage providers, hiring payroll services, working with marketing agencies, or partnering with customer service contractors. The PDP Law makes these agreements mandatory when sharing sensitive information with third parties.

Put this agreement in place before letting another company process your customer or employee data. For example, if you're launching an e-commerce platform and plan to use external payment processors or delivery services, get the agreement signed first. This protects your business from data breaches, regulatory fines, and reputation damage while clearly defining each party's responsibilities.

• DPA Agreement: Standard agreement for direct data processing relationships, covering basic security and compliance requirements under Indonesian law
• Joint Controller Agreement: Used when two companies share data control responsibilities, like partnerships between Indonesian banks and fintech firms
• Sub Processing Agreement: For situations where processors need to involve additional third parties in data handling
• Data Processing Addendum: Supplements existing contracts with PDP Law compliance terms
• International Data Transfer Agreement: Specialized version for cross-border data flows, meeting Indonesian data localization requirements

• Data Controllers: Companies that own customer data and need processing services, like e-commerce platforms or banks sharing data with vendors
• Data Processors: Service providers handling data on behalf of controllers, such as cloud storage companies or payment processors
• Legal Teams: In-house or external lawyers who draft and review Data Processing Agreements to ensure PDP Law compliance
• Compliance Officers: Oversee implementation and monitor ongoing adherence to agreement terms
• IT Security Teams: Implement technical safeguards specified in the agreement
• Data Protection Officers: Required under Indonesian law to supervise data processing activities and agreement compliance

• Data Inventory: List all types of personal data to be processed, including customer details, employee records, or transaction data
• Processing Activities: Document exactly how the data will be collected, stored, used, and deleted
• Security Measures: Outline specific technical and organizational safeguards that align with PDP Law requirements
• Roles Definition: Clarify who acts as controller and processor, plus any sub-processors involved
• Compliance Checks: Verify data localization rules and cross-border transfer requirements
• Response Plans: Prepare breach notification procedures and incident management protocols
• Review Process: Our platform generates customized agreements that include all these elements automatically

• Parties and Roles: Clear identification of data controller, processor, and any sub-processors with their contact details
• Data Scope: Detailed description of personal data types, processing purposes, and duration under PDP Law definitions
• Security Measures: Specific technical and organizational safeguards meeting Indonesian cybersecurity standards
• Data Transfer Rules: Protocol for international transfers and data localization compliance
• Breach Procedures: 72-hour notification requirements and incident response protocols
• Audit Rights: Controller's inspection powers and processor's cooperation obligations
• Termination Terms: Data return or deletion procedures upon agreement end
• Legal Framework: Reference to Indonesian PDP Law compliance and jurisdiction

Data Processing Agreements and Data Sharing Agreements often get mixed up in Indonesian business practice, but they serve different purposes under the PDP Law. The key differences are:

• Processing vs. Exchange: A DPA governs how one party handles data on behalf of another, while a Data Sharing Agreement covers mutual data exchange between equal partners
• Power Dynamic: DPAs establish a controller-processor relationship with clear hierarchical responsibilities; sharing agreements create peer-to-peer relationships
• Scope of Control: Under a DPA, the processor must follow the controller's instructions strictly. In sharing agreements, each party maintains independent control over their use of the data
• Legal Requirements: DPAs are mandatory under Indonesian law when outsourcing data processing. Sharing agreements are optional but recommended for collaborative projects
• Security Focus: DPAs emphasize processing security and compliance, while sharing agreements focus on mutual data protection responsibilities