Data Security in the Digital Era: Should Indonesia Store Data Domestically?

  Editorial INTI     1 bulan yang lalu
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Jakarta, INTI - In the rapidly evolving digital age, data security has become one of the most critical issues. With the increasing frequency of cyber threats, from hacking to data breaches, the pressing question is: should Indonesia store its data domestically?

Cyber Threat Trends and Data Security

Data security has become a major focus in Indonesia, particularly after several large data breaches in recent years. A report from the National Cyber and Encryption Agency (BSSN) revealed that in 2023, Indonesia experienced more than 1.6 billion cyberattacks, including ransomware, phishing, and hacks on major corporate systems.

Given the high number of attacks, concerns are rising regarding data security, especially for sensitive data from government institutions, financial sectors, and the healthcare industry.

Domestic vs International Data Storage: Which is Safer?

The decision to store data domestically or internationally must take into account several key factors, such as data control, privacy policies, and infrastructure security.

  1. Physical and Digital Security:
    • Local Data Centers: One of the primary advantages of storing data domestically is the ability to directly monitor and control the infrastructure. Data centers in Indonesia, such as DCI Indonesia and Infonesis, have begun improving their standards with ISO 27001 security certifications and tier III reliability, ensuring operational security and dependability.
    • International Providers: International cloud service providers like AWS and Google Cloud offer very high security standards, including encryption technology, advanced firewalls, and automated threat management. Their infrastructure in multiple global locations also provides redundancy that prevents data loss due to natural disasters or physical incidents.

However, storing data abroad carries the risk of jurisdictional laws. Data stored overseas may be accessed by foreign governments under local laws, such as the Patriot Act in the United States, which allows access to certain data.

  1. Data Regulation and Privacy: Storing data domestically simplifies compliance with local regulations such as the newly enacted Personal Data Protection Law (PDP Law). This law requires companies to protect Indonesian citizens' personal data and ensure that it is not misused.

Based on this regulation, storing data in Indonesia provides stronger legal protection and prevents unauthorized third-party access.

Benefits of Storing Data Domestically

  1. Legal Compliance: One of the main reasons companies and institutions choose to store data domestically is to ensure compliance with local regulations. The Indonesian government has issued regulations mandating that personal data be stored domestically to protect the privacy of its citizens.
  2. Better Data Control: By storing data domestically, companies have better control over their data. They can directly monitor data center infrastructure, ensuring physical security, and preventing illegal access.
  3. Reducing Foreign Dependency: Storing data abroad increases dependency on foreign infrastructure, which can pose risks amid geopolitical tensions or economic disputes.

Drawbacks of Storing Data Domestically

  1. Limited Infrastructure: While improving, Indonesia's data center infrastructure is not yet on par with international cloud providers. This can be a challenge for companies requiring large-scale capacity and advanced services such as big data analytics and AI.
  2. Higher Technology and Maintenance Costs: Some local data centers may have higher costs to maintain infrastructure and ensure security, especially for smaller companies with limited budgets.

Solution: A Hybrid Cloud Model

As a solution, companies and institutions in Indonesia can leverage a hybrid cloud model. In this model, highly sensitive data is stored domestically, while non-critical data can be stored with international cloud providers to take advantage of more advanced technology and capacity.

In this risk-laden digital era, data security is a top priority. Storing data domestically offers advantages in terms of control, privacy, and legal compliance, though there are challenges in terms of infrastructure and cost. Meanwhile, storing data abroad provides more advanced technology but carries risks in terms of jurisdiction and security.

The best option is to combine local and international storage to gain the benefits of both, while reducing risks.

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