Legal Framework for consumer Data Protection For Digital Business SMES in Indonesia

Abstract

Objective: The development of digital business in Indonesia has increased significantly. It is estimated to be more than US$ 77 billion by 2022, an increase of 22% from the previous year. The contribution of 64.2 million MSMEs to Indonesia's GDP was recorded at > 60 per cent. However, the development of information technology and the considerable potential of the digital economy are also accompanied by several negative impacts, including threats to citizens' privacy rights and personal data. However, not an absolute human right, protecting privacy remains crucial in this digital economy era.   Method: The study used a seven-step approach. The first is the collection of data from primary and secondary legal materials; the second step is to filter this data based on policies related to data privacy, especially for consumers who conduct digital transactions in the jurisdiction of Indonesia. These policies are then sorted according to the criteria that have been filtered. The on-site policy is then compared to the benchmark policy. This comparison will show the gap between effective regulation and Indonesian legislation on digital business and MSME consumer data privacy. This gap is verified by Indonesian law and legal experts to eliminate false positives. Finally, a proposed set of guidelines was designed based on expert-verified benchmarks and gap policies   Result: This is where legal protection is essential for consumers who transact with digital businesses. So that it can protect legal subjects through applicable laws and regulations and forced implementation with a sanction, legal protection   Conclusion: Legal protection for consumers, especially consumers who make digital transactions, has been regulated in the Consumer Protection Law. However, this law generally only regulates conventional consumer transactions manually, whereas in trading, there is a meeting between traders and buyers.