Jakarta. Communications and Digital Minister Meutya Hafid has denied that Indonesia's new trade agreement with the United States includes the transfer of citizens’ personal data, following growing public concern over a cross-border data clause in the deal.

Meutya told lawmakers on Monday that the Agreement on Reciprocal Trade (ART), signed on February, does not allow the Indonesian government to hand over population or personal data to Washington.

“There is no transfer of population data by the Indonesian government to the United States government. That is simply not true,” Meutya said during a parliamentary hearing in Jakarta.

The clarification came after details emerged about Section 3 of the agreement, which governs digital trade and technology cooperation between the two countries. The clause guarantees the free flow of electronic data across borders for business and digital trade activities, while also prohibiting Indonesia from forcing American companies to store or process data locally through domestic data centers.

The agreement further extends the prohibition on data localization requirements to financial and banking services, a move that has alarmed cybersecurity and digital sovereignty advocates in Indonesia.

Under the deal, Indonesia also agrees to recognize the United States as a jurisdiction with “adequate” data protection standards under Indonesian law, providing legal certainty for cross-border data transfers involving American firms.

Additional provisions bar Indonesia from requiring US technology companies to disclose source codes or proprietary technology as a condition for entering the Indonesian market. Jakarta also commits to supporting a permanent moratorium on customs duties for electronic transmissions at the World Trade Organization and agrees not to impose discriminatory digital services taxes targeting major US technology firms.

One provision drawing particular scrutiny is Article 3.3, which requires Indonesia to consult with Washington before entering future digital trade agreements with third countries.

Meutya stressed that any exchange of personal data remains governed by Indonesia’s Personal Data Protection Law, which requires equivalent levels of data protection between countries involved in cross-border transfers.

She said the United States would still need to undergo a formal assessment process before being recognized as having adequate data protection standards under Indonesian law.

Indonesia’s data protection framework distinguishes between general personal data — such as names, gender, and marital status — and more sensitive categories, including medical records, biometric information, and criminal histories.

The government insists the agreement only facilitates commercial data flows needed for digital business activities such as e-commerce, financial technology, and cloud services, rather than granting US authorities direct access to Indonesian citizens’ private information.