Indonesia’s Data Sovereignty: Toward A Digital Transformation That Is Inclusive, Empowering, And Self-Determined

This policy brief, produced by Kontika (2026), examines Indonesia’s data sovereignty challenge in the context of its rapidly expanding digital economy — projected to reach USD 360 billion by 2030. Despite having 229.4 million internet users and one of ASEAN’s largest digital economies, approximately 70–75% of Indonesia’s national data is stored and processed abroad, primarily in Singapore, while 85–90% of digital infrastructure relies on foreign technology. The brief employs a WHERE-WHO-HOW analytical framework to map three critical dimensions: data localization and infrastructure (WHERE), regulatory control and institutionalcapacity (WHO), and technological independence and innovation (HOW). It also addresses the cybersecurity dimension, highlighted by the June 2024 PDNS ransomware attack that paralyzed over 210 government institutions. Four strategic policy pillars are proposed: (1) accelerating four Tier-IV National Data Centers (PDN) and establishing a National Sovereign Cloud Consortium; (2) operationalizing the Personal Data Protection Authority (LPPDP) and harmonizing sectoral regulations; (3) building technological independence through a National Semiconductor Task Force and AI Centers of Excellence; and (4) consolidating cyber resilience through a National Government SOC and scaling active CSIRTs from 147 to 500 teams — all structured along a three-phase roadmap through 2030