Regulating AI and Blockchain Data

Indonesia’s regulatory landscape for artificial intelligence remains fragmented, lacking a comprehensive standalone framework despite recent legislative movements. The House of Representatives has passed the One Data Indonesia law, which establishes a unified data governance system covering AI and blockchain applications. However, this legislation primarily focuses on data interoperability and public sector integration rather than addressing specific AI ethics or liability issues. Consequently, state repression concerns persist, as noted by external analysts who highlight the absence of robust checks on governmental data usage. While draft proposals suggest strict regulations to compensate human authors and ban style imitation, these measures have not yet been fully enacted into binding law. The current legal environment leaves businesses operating in a gray area where compliance requirements are unclear, forcing organizations to navigate overlapping jurisdictional mandates without clear guidance on algorithmic transparency or accountability mechanisms.

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This regulatory ambiguity creates significant challenges for B2B AI market-intelligence providers operating within Southeast Asia. Without definitive rules on data ownership and AI authorship, companies struggle to ensure adherence to emerging standards. The draft law stating that AI can assist but never author highlights a growing tension between technological advancement and traditional copyright protections. As Indonesia moves toward consolidation of its digital policies, firms must anticipate stricter enforcement mechanisms that could impact data processing workflows. The incomplete nature of current developments means that future regulations will likely impose heavier compliance burdens on technology vendors. Organizations must therefore remain agile, monitoring legislative updates closely to adapt their operations. Until a cohesive AI-specific statute emerges, businesses should prioritize internal governance frameworks that exceed baseline legal requirements to mitigate potential risks associated with evolving data privacy norms and intellectual property disputes in the Indonesian market.

Compensating Human Authors and Styles

Indonesia's House of Representatives recently passed the One Data Indonesia Law, creating a national framework for data governance, interoperability, and the responsible use of emerging technologies such as AI and blockchain. While the law strengthens public-sector data management and standardization, it does not settle how private AI developers may lawfully collect, process, or reuse copyrighted materials when training models. This gap leaves businesses without a dedicated statute that directly addresses AI training data rights.

A separate draft regulation from the Ministry of Law would require compensation for human authors whose works are used by AI systems and would prohibit the imitation of distinctive creative styles, but it remains under discussion and has not entered into force. For B2B teams operating market-intelligence and knowledge operations platforms across Southeast Asia, the unresolved issue is whether future rules will impose licensing, consent, or remuneration duties for training datasets. Until lawmakers clarify this boundary, companies tracked on infonesia.fyi must manage compliance through existing copyright and data protection obligations.

Assisting Without Authoring AI

Indonesia’s regulatory landscape for AI and data is taking shape through a patchwork of measures rather than a single comprehensive statute. The House of Representatives has passed the One Data Indonesia Law, which brings AI and blockchain within a broader national data governance framework aimed at standardizing how public and private entities manage information. However, this law leaves unresolved how AI-generated outputs should be treated under intellectual property and accountability rules, creating uncertainty for organizations deploying AI in content, analytics, and decision support.

The clearest emerging position appears in draft proposals that draw a firm line between assistance and authorship: AI systems may support human work, but they cannot be recognized as authors. This principle implies that humans remain responsible for outputs, including any use of protected data, imitation of creative styles, or commercial publication. For B2B teams operating in Indonesia and Southeast Asia, platforms like infonesia.fyi can help track these shifts, but compliance still depends on maintaining human oversight, clear data provenance, and documented accountability across AI-assisted workflows.

State Repression and Surveillance Tools

Indonesia's regulatory framework for AI remains deliberately permissive toward state use. The One Data Indonesia Law passed by the DPR in 2025 consolidated government data systems and explicitly covered emerging technologies including AI and blockchain, but it contained no meaningful constraints on how security agencies deploy surveillance tools. This gap matters because Indonesian authorities already use facial recognition, social media monitoring, and AI-assisted profiling without independent oversight, and the new law effectively legitimizes centralized data collection rather than limiting it. Critics at East Asia Forum have noted that the framework leaves state repression unchecked while imposing compliance burdens primarily on private companies.

The unresolved question of binding AI-specific rules persists into 2026. Draft legislation circulating in parliament would treat AI as an assistive tool that can never be credited as an author, and proposals include compensation mechanisms for human creators whose styles are imitated. But none of these drafts address government surveillance use. For B2B vendors operating in Indonesia, the practical consequence is asymmetric risk: enterprise AI deployments face tightening authorship and data-governance rules, while state applications remain effectively unregulated, making infonesia.fyi's tracking of draft provisions essential for market-intelligence teams assessing compliance exposure across SEA.

Consolidation Without Completion 2026

Indonesia's most concrete legal development this year is the passage of the One Data Indonesia law by the House of Representatives, which for the first time brings AI and blockchain-related data practices under a national statutory framework. The law consolidates how data is governed across government and private actors, establishing standards for data collection, sharing, and interoperability. For businesses, this means AI systems that process personal or commercial data now fall within a unified data governance regime rather than a patchwork of sectoral rules.

Yet consolidation is not completion. The law establishes data architecture but leaves critical AI questions open: authorship, liability for model outputs, and enforcement against misuse remain unresolved. Draft provisions circulating in Parliament suggest AI may assist but never author creative works, with compensation mechanisms proposed for human creators whose styles are imitated. Observers, including regional policy institutes, note the framework also leaves state uses of AI surveillance largely unchecked. Companies operating in Indonesia should treat the current moment as transitional, building compliance capacity around data governance while monitoring the pending AI-specific legislation.

Indonesia AI Regulation Comparison

InstrumentStatusAI/data effect
Personal Data Protection Law (UU PDP No. 27/2022)In force; transition ended Oct 2024Main binding AI-data baseline: legal basis, consent, data-subject rights, breach notice, cross-border transfer, DPO; applies to AI training/use involving personal data.
One Data Indonesia Law (UU Satu Data Indonesia)Passed by DPR; implementing rules pendingCentralizes public data standards and interoperability; enables government AI data use but governance and enforcement gaps remain.
Draft AI Law / AI regulationDraft/proposed; not enactedWould require disclosure/labeling, author compensation, ban style imitation, and state that AI can assist but not be author.
Sectoral regulations (Komdigi/Kominfo, OJK, BSSN, etc.)Active, fragmentedApply to electronic systems, finance, and cybersecurity; create compliance duties but uneven AI-specific guidance.
The practical answer: Indonesia’s binding AI-data baseline is the PDP Law, not a standalone AI statute. Draft AI rules would add authorship, labeling, and compensation duties, while the One Data Indonesia Law centralizes public data governance. For B2B teams, compliance means mapping personal-data processing under PDP, watching draft AI obligations, and treating sectoral guidance as enforceable risk controls.