Discussing the Impact of the PDP Bill on the Digital Advertising Business in Indonesia

The Personal Data Protection Bill (RUU PDP) will sooner or later be passed by parliament as a permanent legal product. The existence of this regulation is increasingly important because people are increasingly connected to digital services.

In other words, PDP Bill is the only hope for the community so that the data they submit to a number of digital service platforms can be truly protected. But stricter personal data protection rules have a different impact on the world digital advertising.

The Indonesia Digital Association captures this potential impact. Head of IDA Diane Gemiano recognizes the impact that the PDP bill will have on digital advertising. However, he believes that the digital advertising industry does not need to worry as long as it can adapt quickly.

"These rules will also protect business owners from being disturbed by perpetrators fraud data which often harms business actors who legitimate, said Gemi.

Chairman of the Indonesian Big Data and AI Association, Rudi Rusidah, explained that the main purpose of the PDP Bill is to maintain the sovereignty of public data. Rudi, who is actively involved in the discussion of the PDP Bill, considers that the regulation is quite important in digital advertising activities to minimize data leak or misuse of data. One way is to exchange identifiable data to the data owner with certain codes or numbers. This method is called pseudonymization.

"In the regulation, if you want to share data or sell data to other people, the data must be anonymous," added Rudi.

The digital advertising industry, both locally and globally, is indeed facing major challenges this year. In Europe, the entry into force of the GDPR changed many things in particular the way the digital advertising industry works.

The pressure to secure personal data on various digital platforms continues to strengthen. The most recent biggest news comes from Google which is planning to shut down gradually third party cookies in the Chrome browser in the next two years.

In the world of digital advertising, third party cookies is a tool that can help them in browsing user data between different websites. With this tool site owners can do remarketing or retargeting in a campaign.

Data from StatCounter in September 2020 showed that the market share of the Google Chrome browser in Indonesia reached 77,5%. Lost third party cookies in the browser it will obviously force many in the digital advertising industry to find new ways to manage and monetize first party data.

"It is important for digital industry players to understand how business practices can comply with personal data regulations that exist in the industry, although currently it is still in the form of a bill," concluded Gemi.

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