Reinforcing Indonesia’s Data Sovereignty: A Patriotic Call to Action in the AI Arms Race

In the digital era, data is a nation's most valuable asset—fueling economic growth, safeguarding national security, and ensuring the well-being of its citizens. For Indonesia, reinforcing on-shoring data regulations is not merely a policy choice—it is a patriotic imperative.

As the global AI arms race intensifies, fueled by technologies like Deepseek and OpenAI, Indonesia must urgently strengthen its stance on data sovereignty. With the global AI market projected to surpass USD 1 trillion by 2030, the risks of losing control over citizen data extend far beyond national security—they threaten Indonesia’s ability to compete in the global economy.

This urgency is underscored by the alarming rise in cybersecurity incidents, the growing importance of local cloud computing infrastructure, and the unparalleled opportunities for economic growth from robust data localization policies.

Indonesia’s journey toward data sovereignty began with PP No. 82/2012, a groundbreaking regulation requiring public service electronic system operators to localize their data centers and disaster recovery systems. While this regulation protected Indonesia’s data and bolstered cybersecurity, its relaxation under PP No. 71/2019 permitted offshore data storage—leading to national security vulnerabilities and the loss of control over critical information.

A Stark Wake-Up Call

The consequences of relaxed regulations became evident in June 2024, when a ransomware attack on Indonesia’s National Data Centre disrupted over 40 government agencies, including immigration services and airport operations. The attackers demanded an $8 million ransom, causing nationwide chaos (Source: Reuters).

This incident highlights the dangers of offshore data storage and decentralized infrastructure. Without stricter data localization policies, Indonesia risks further attacks that could cripple its digital infrastructure.

The Global AI Arms Race: Deepseek vs. OpenAI

At the heart of the global data sovereignty conversation is the AI arms race. Cutting-edge AI technologies like Deepseek and OpenAI are driving rapid transformation across industries, making access to localized, secure, and reliable data infrastructure even more critical.

Deepseek vs. OpenAI: A Technical Comparison

While OpenAI’s models are celebrated for their generalized creativity and versatility, Deepseek’s strength lies in its industry-specific precision and efficiency, making it a vital tool for safeguarding data and operational agility.

Lessons from Global Data Localization Policies

Countries worldwide have demonstrated that robust data localization policies not only protect national sovereignty but also unlock significant economic benefits.

By implementing similar measures, Indonesia could position itself as a regional data hub, accelerating its progress in the digital economy while ensuring sovereignty over its critical information.

The Economic Potential of Data Localization in Indonesia

Unlocking Trillions in Economic Opportunities

Reinforcing on-shoring regulations could trigger a domino effect of economic benefits. According to IDPRO’s analysis, achieving a 1-gigawatt industry power capacity in data centers could yield monthly revenue of Rp 1.7 trillion for PLN (Perusahaan Listrik Negara).

Key Benefits of Data Localization

IDPRO’s Patriotic Call to Action

As the Indonesian Data Center Provider Organization (IDPRO), we firmly advocate for revising PP No. 71/2019 to strengthen on-shoring data regulations.

Our Core Beliefs

• Data Sovereignty Is Non-Negotiable: Protecting national data ensures Indonesia’s independence in the digital era.
• Economic Growth Is Achievable: Localizing data storage can transform Indonesia into a thriving digital hub for the Asia-Pacific region.
• Cybersecurity Is Critical: Stronger regulations will reduce vulnerabilities and minimize the risks of cyberattacks.

Uniting for a Secure Digital Future

By implementing on-shoring data regulations, Indonesia can:

• Protect its sovereignty.
• Enhance its cybersecurity framework.
• Accelerate its transformation into a regional digital leader.

This is our moment to secure a prosperous, independent, and innovative digital future for Indonesia. Together, let us honor our patriotic duty and ensure that Indonesia’s data remains firmly in our hands.

IDPRO is ready to lead this charge. Are you?

Sources

• Reuters (2024) - "Ransomware attack disrupts Indonesia’s National Data Centre."
• OECD Report (2023) - "The Economic Impact of Data Localization."
• IDPRO Internal Analysis (2025) - "The Economic Potential of On-Shoring Data Centers."
• BSSN - Cybersecurity Insights for Indonesia.