Indonesian companies now operating in the digital ecosystem already have very strict regulations. The Personal Data Protection Act (PDP Law) requires every data controller to protect personal data with high standards.
Often in Indonesia, cloud compliance is only considered a technical matter, whereas non-compliance directly engages with the law. The penalties are not only fines of billions of rupiah, but also potential criminal charges and the loss of customer trust.
This is why understanding and seriously implementing cloud compliance is crucial for every company, especially ones that operate using technology and personal data.
What is Cloud Compliance?
Cloud compliance is a form of general regulation, industry standardization, and internal policy when employing digital-based technology, especially cloud computing. It is needed to ensure that data stored in the cloud has guaranteed security and does not leak.
In essence, every organization/company must ensure that the stored and processed data complies with the regulations in the country where your organization/company is based. The most common examples are the PDP Law (Personal Data Protection) in Indonesia and GDPR in the European Union.
Why is Cloud Compliance Important?
Using the cloud without understanding its compliance is like digging your own business grave. This ensures businesses can maintain a secure cloud environment that complies with the laws in the country, which in turn increases customer or public trust in the company. This is why cloud compliance is important.
Data Protection
Legal compliance ensures that important data, whether belonging to the company or the cloud service provider's customers, is protected from unauthorized access.
Maintaining Business Reputation
Cloud compliance guarantees compliance with regulations, showing that service providers or companies are responsible for security and privacy, which can enhance reputation and preserve customer and business partner trust.
Supporting Audits & Certification
Undergoing external audits is common for companies, so one of the requirements to pass these audits and certifications is by implementing cloud compliance.
Avoiding Financial Loss
Violating regulatory compliance is a legal offense that can result in penalties or extremely costly recovery fees if critical events like data breaches or losses occur.
Risk Management
Complying with cloud compliance is akin to creating a secure system because it can proactively identify, mitigate, and monitor security and compliance risks in real-time.
Read also: 7 Cloud Security Myths in Indonesia You Need to Know
Core Regulations to Understand
There are cloud compliance standards encompassing legal and regulatory compliance. These standards ensure security, privacy, and operational data compliance in a cloud environment. Some of the most commonly referenced standard regulations in cloud compliance include:
Personal Data Protection Act (PDP Law) No. 27 of 2022
One of the national regulations governing the management, storage, and protection of personal data of Indonesian citizens. Violation of this regulation can incur penalties of 2% of the company's total annual revenue if negligent.
GR 71/2019 & Government Data Center Rules
For industries engaged in providing public electronic systems, there are data storage provisions in Indonesia. Private companies handling public data must consider whether this workload needs to be stored in a local data center.
OJK/BI Sectoral Rules
Payment service providers and institutions in the financial sector must report if they use cloud computing services. Especially if the data is stored abroad, requiring regulatory approval for certain critical workloads.
Other Specific Sectors
Health, energy, and education have additional regulations such as data residency obligations for electronic medical records.
Practical Guide to Regulatory Compliance
Besides choosing a trusted cloud service provider that is guaranteed to meet applicable industry compliance standards, it is also necessary to implement encryption, multifactor authentication, and conduct regular manual monitoring to prevent attack threats or shadow IT. Here is the practical guide you must
Data & Inventory Mapping
Identify the type of data, storage location, and processing flow. Without a data map, companies cannot determine risk threats or appropriate encryption strategies.
Data Protection Impact Assessment (DPIA)
Create a detailed analysis to assess high risks when processing sensitive data or transitioning to new technology. The analysis results will form the foundation for security policy.
Selecting a Data Protection Officer
This staff will act as a regulator linking the company, regulators, and data subjects (clients). They must also ensure the company complies with applicable policies, monitor incidents, and conduct employee training on data security.
Drafting Contracts & Addendums with Cloud Providers
Pay attention to SLA and add clauses for breach notification rights, audit rights, encryption, and cross-country data transaction mechanisms if needed.
Cross-Border Data Transfer
If data is stored outside Indonesia, ensure the legal basis and applicable regulations in that country.
Technical Controls
Ensure the use of encryption systems at-rest and in-transit, Identity & Access Management (IAM) based on least privilege, logging, and automatic patching so that all activities can be well detected.
Incident Response & Breach Notification
Develop a playbook as a procedure for handling incidents, internal communication channels, and how to resolve issues with regulators within 72 hours post-incident.
Vendor Assessment & Regular Monitoring
Conduct routine audits of all used vendors, including sub-processor cloud. Use Cloud Security Posture Management (CSPM) to detect misconfigurations.
Training
Provide training to all employees, from the IT team to marketing, to ensure understanding of data security policies and procedures that are not just on paper.
Data Residency
Identify workloads that must remain in Indonesia and which can be stored abroad. This is important for the financial sector and public services.
Stages in Meeting Cloud Compliance
In meeting cloud compliance policies, start by identifying relevant regulations, auditing the cloud systems used, applying internal company access control policies, evaluating compliance with applicable standards, and creating reports and continuous monitoring. Here are the detailed steps to achieve cloud compliance:
Preparation
Before the next stage, it is important to know and identify the initial condition of the company and match it with applicable legal obligations. This stage includes
- Data Mapping: Identify all personal and sensitive data
- Risk Analysis & DPIA: Conduct Data Protection Impact Assessment for high risks.
- Regulation Alignment: Learn the substance of applicable regulations that your company must adhere to.
- Form a Team: Appoint a Data Protection Office (DPO) and form a cross-division team.
Planning
Companies need to design policy frameworks and agreements binding the entire ecosystem,
- Privacy & Security Policies: Update or create if not yet available, internal and external policy documents (privacy policy, SOP, etc.)
- Cloud SLA: Review the contract between the company and cloud provider, add clauses for audit rights, incident notifications, encryption, and cross-country data transfer mechanisms.
- Data Residency: Determine the workload needed to be stored in Indonesia or which can be stored abroad.
Implementation
Next is the implementation stage, applying security controls and operational processes according to applicable policies.
- Data Security: Encryption at-rest & in-transit, Identity & Access Management, and network segmentation.
- Monitoring & Logging: Set up SIEM for 24/7 monitoring and keep logs for 12 months.
- Backup & Disaster Recovery: Schedule encrypted backups and regularly test recovery.
- Data Loss Prevention: Protect sensitive data from unauthorized access,
- Compliance: Automation: Use Cloud Security Posture Management (CSPM) to monitor cloud configurations in real-time.
Management & Audit
It is vital to ensure the proper functioning of the cloud system post-implementation to know if all operations are running as previously designed.
Ongoing Maintenance
If operations run smoothly and according to the initial design, it is important to conduct regular maintenance. It maintains consistent compliance while adapting to technological and regulatory changes.
Operational Checklist to Record
A clear checklist—from data mapping, encryption, backup, to employee training—helps the team close risk gaps from the start. This approach makes the compliance process more structured, flexible, and easier to adapt to technological developments or new regulations in Indonesia, like the PDP Law.
Poin | Apa yang Dicek | Tujuan |
Data Map & DPIA | All data flows are documented and risks are measurable | Policy foundation & encryption |
DPO & Tim Kepatuhan | Official designation, clear SOPs | Regulatory communication channels |
Cloud Contract | SLA includes audit rights & incident notifications | Partner compliance assurance |
Technical Security | Encryption, MFA, least-privilege IAM | Protect data from breaches |
Monitoring & Logging | Active SIEM, logs retained ≥12 months | Audit evidence & rapid response |
Backup & Recovery Test | Encrypted backups, regular recovery testing | Ensure business continuity |
Incident Response Plan | Tested incident procedures | Minimize breach impact |
Vendor Assessment | Vendor & sub-processor security audits | Reduce supply chain risks |
Employee Training | Privacy/security training every 6 months | Sustainable security culture |
| Data Residency Plan | Critical workloads hosted in Indonesia | Comply with financial/public sector regulations |
Read also: 10 Cloud Security Trends You Can Apply in Your Company
Conclusion
Building cloud compliance is not just about meeting regulations, but also a strategic way to protect data, maintain customer trust, and enhance business competitiveness. By following the steps from preparation, policy design, technical implementation, testing & audit, to ongoing operations, companies can ensure every aspect of security and privacy is consistently in place.
Cloud compliance is a long-term investment: not only to avoid sanctions but also to build a strong reputation and ensure business remains secure, reliable, and ready to face future digital challenges.