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Data Outsourcing Agreement Template for Indonesia

This document is a comprehensive Data Outsourcing Agreement governed by Indonesian law, specifically designed to comply with Law No. 11 of 2008 on Electronic Information and Transactions (ITE Law) and related regulations. It establishes the legal framework for outsourcing data processing activities while ensuring compliance with Indonesian data protection requirements, including data localization rules and personal data protection measures. The agreement covers essential aspects such as service levels, security protocols, data handling procedures, and compliance mechanisms, with specific attention to Indonesian regulatory requirements for data processing and cross-border data transfers.

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What is a Data Outsourcing Agreement?

This Data Outsourcing Agreement is essential for organizations operating in Indonesia that wish to outsource their data processing activities to third-party service providers. The document is designed to meet the requirements of Indonesian regulations, particularly the ITE Law, Government Regulation No. 71 of 2019, and various sector-specific regulations. It is commonly used when companies need to engage external providers for data processing, storage, or management services while ensuring compliance with local data protection laws. The agreement includes comprehensive provisions for data security, service levels, compliance requirements, and risk allocation, with specific attention to Indonesian data localization requirements and cross-border transfer restrictions. It is particularly relevant for organizations handling sensitive data or operating in regulated industries, where specific compliance obligations must be met.

What sections should be included in a Data Outsourcing Agreement?

1. Parties: Identification of the data controller (client) and data processor (service provider), including their complete legal names, registration numbers, and addresses

2. Background: Context of the agreement, brief description of the parties' businesses, and the purpose of the data outsourcing arrangement

3. Definitions: Detailed definitions of key terms used throughout the agreement, including technical terms, 'Services', 'Data', 'Personal Data', 'Processing', etc.

4. Scope of Services: Detailed description of the outsourced data processing services, including specific data handling activities and responsibilities

5. Service Provider Obligations: Core obligations including data security, confidentiality, service levels, reporting, and compliance with Indonesian regulations

6. Client Obligations: Client's responsibilities including data provision, access rights, cooperation requirements, and payment obligations

7. Data Protection and Security: Specific measures for data protection, security protocols, breach notification procedures, and compliance with Indonesian data protection laws

8. Compliance with Laws: Obligations to comply with Indonesian regulations, particularly ITE Law and data protection requirements

9. Confidentiality: Provisions for maintaining confidentiality of data and business information

10. Intellectual Property Rights: Ownership and usage rights of data, systems, and derived works

11. Fees and Payment: Payment terms, fee structure, and invoicing procedures

12. Term and Termination: Duration of agreement, renewal terms, and termination rights and procedures

13. Liability and Indemnification: Allocation of risks, limitation of liability, and indemnification obligations

14. Force Majeure: Provisions for unforeseen circumstances preventing performance

15. Dispute Resolution: Procedures for resolving disputes under Indonesian law, including choice of forum

16. General Provisions: Standard boilerplate clauses including notices, amendments, assignment, and entire agreement

What sections are optional to include in a Data Outsourcing Agreement?

1. Cross-Border Data Transfer: Required when data will be transferred outside Indonesia, addressing specific regulatory requirements for international data transfers

2. Financial Services Compliance: Required for financial institutions, addressing OJK and Bank Indonesia regulations

3. Personal Data Processing: Detailed section required when processing personal data, including consent management and data subject rights

4. Business Continuity and Disaster Recovery: Detailed requirements for critical services or when handling sensitive data

5. Audit Rights: Enhanced audit provisions for regulated industries or when handling sensitive data

6. Sub-processing: Required when the service provider may engage sub-processors

7. Exit Management: Detailed transition provisions for complex services or critical data

8. Insurance Requirements: Specific insurance obligations for high-risk services

What schedules should be included in a Data Outsourcing Agreement?

1. Schedule 1 - Services Description: Detailed technical specifications of the outsourced services

2. Schedule 2 - Service Levels: Service level agreements, KPIs, and performance measurements

3. Schedule 3 - Security Requirements: Detailed security protocols, standards, and compliance requirements

4. Schedule 4 - Fee Schedule: Detailed pricing, payment terms, and fee calculations

5. Schedule 5 - Data Processing Requirements: Specific requirements for data processing, including types of data and processing activities

6. Schedule 6 - Business Continuity Plan: Disaster recovery and business continuity procedures

7. Schedule 7 - Contact Details: Key personnel and escalation contacts for both parties

8. Appendix A - Data Categories: List and description of data categories to be processed

9. Appendix B - Technical and Organizational Measures: Detailed security and organizational measures for data protection

10. Appendix C - Approved Sub-processors: List of approved sub-processors (if applicable)

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Indonesia

Cost

Free to use

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