Is Your Company Required to Appoint a DPO? Understanding DPO in the PDP Law

Since the enactment of Law Number 27 of 2022 on Personal Data Protection (PDP Law), the landscape of personal data compliance in Indonesia has changed fundamentally.

Data controllers and data processors no longer merely manage data as an operational asset, but as a legal object subject to supervision and capable of generating real legal consequences.

In practice, many organizations are still confused about the obligation to appoint a PPDP (Personal Data Protection Officer) or equate this role with the DPO (Data Protection Officer) under the General Data Protection Regulation (GDPR).

Many still consider it merely a formal position to fulfill audit documents. In reality, this function greatly determines the direction of compliance and the level of the company’s legal risk exposure.

What Are PPDP and DPO?

PPDP is an official or function appointed by a personal data controller and/or personal data processor to ensure the organization’s compliance with the PDP Law in Indonesia.

Meanwhile, a DPO is a Data Protection Officer required by the GDPR for certain organizations to monitor compliance with data protection regulations in the European Union.

In many privacy compliance implementations, the two terms are often used interchangeably. However, legally, they originate from different regulatory frameworks.

The PDP Law adopts many principles from the GDPR, including the concept of the independence of this supervisory function. Nevertheless, there are fundamental differences in the approach to appointment obligations.

In Indonesia, based on Article 53 paragraph (1) of the PDP Law, the obligation to appoint a PPDP only applies if the company meets certain criteria, for example when data processing is conducted on a large-scale, systematically, or involves sensitive data.

The DPO, on the other hand, is regulated in detail under the General Data Protection Regulation and applies to organizations that process data of EU data subjects, including entities outside the EU that offer goods or services to EU residents.

The key differences lie in jurisdiction, the level of regulatory detail, and the prescriptive nature of the framework. The GDPR provides more detailed rules regarding independence, direct access to top management, and the prohibition of receiving instructions in carrying out DPO functions.

The PDP Law regulates similar principles, but with room for interpretation that is still developing in implementation practices in Indonesia.

Why Are PPDP and DPO Functions Important in Data Protection?

The PPDP and DPO functions are essential because they serve as internal supervisors of personal data compliance within an organization.

Without this function, there is no structural mechanism that specifically monitors whether daily business activities align with the legal obligations of data protection.

At the operational level, this function determines whether consent mechanisms are compliant, whether data subjects can exercise their rights, and whether data breach reporting is done within the specified time limits.

In compliance audits, this role becomes a primary focal point for regulators. If auditors find that no officer is responsible for data compliance, this constitutes a systemic finding indicating weak internal controls.

Without a PPDP/DPO, the following may occur:

• First, there is no independent oversight mechanism. As a result, data processing may proceed without ever being assessed for compliance with PDP principles.
• Second, conflicts of interest may arise. In many cases, the compliance function is combined with an IT manager role who is also responsible for system efficiency.
• Third, the company loses a “bridge” for communication with supervisory authorities and data subjects.

From a risk management perspective, the absence of this function increases exposure to:

• Administrative sanctions (up to 2% of yearly profit)
• Civil lawsuits from data subjects
• Reputational risks due to negative publicity
• Prolonged regulatory investigations

In other words, PPDP and DPO are not mere compliance ornaments, but integral components of the internal control system within a corporate governance framework.

Duties of the PPDP Under the PDP Law

The PPDP is tasked with ensuring the compliance of the data controller and/or data processor with the PDP Law, and acts as a liaison between the company and data subjects and the supervisory authority.

Its primary functions are supervision, advisory, and acting as a point of contact between the organization and the data protection authority.

In its implementation, the duties of the PPDP include:

• Providing advice to management and business units regarding legal obligations in personal data processing. This function should be involved from the product design stage (privacy by design) to identify risks early.
• Monitoring internal compliance, including policies, procedures, and operational practices. The PPDP is typically involved in reviewing SOPs, vendor contracts (data processing agreements), and overseeing information security controls.
• Acting as a contact point for authorities and data subjects. When there are requests for access, correction, or deletion of data, the PPDP ensures responses are delivered within legal deadlines and according to procedures.
• Overseeing the implementation of Data Protection Impact Assessments (DPIA) for high-risk activities. The PPDP plays a role in determining whether a new project, such as the use of biometric technology, requires additional risk assessment.
• At the governance level, the PPDP should ideally have direct access to the board of directors or the risk committee. Without such access, the supervisory function risks being reduced to a mere administrative role.

Duties of the DPO Under the GDPR

The DPO under the GDPR has broadly similar duties but with a stronger emphasis on independence and a strategic role, which is informing, advising, monitoring compliance, and acting as a liaison with the supervisory authority and individuals in the European Union.

The General Data Protection Regulation explicitly regulates DPO duties, including:

• Informing and advising controllers/processors regarding GDPR obligations.
• Monitoring compliance, including responsibility allocation, staff training, and internal audits.
• Providing advice regarding Data Protection Impact Assessments (DPIA).
• Cooperating with supervisory authorities and acting as the primary contact point.

One of the key principles in the GDPR is the independence of the DPO. Articles 38 and 39 of the GDPR explicitly state that the DPO must not receive instructions from management regarding how to carry out their tasks.

They are also required to report directly to the highest level of management, not to the operational director or financial director.

In the European Union context, failure to appoint a DPO when required can lead to significant administrative sanctions.

Administrative fines can reach up to 10 million Euros or 2% of the total global annual turnover (whichever is higher).

Moreover, the presence of a competent DPO often becomes a mitigating factor that lightens penalties when a breach occurs.

If a company does not have a DPO, regulators may conclude that the company is not serious about managing privacy risks.

Conclusion

PPDP and DPO are essentially the same in nature: internal supervisory functions that ensure personal data compliance.

The differences mainly lie in jurisdiction and technical regulatory detail. The PDP Law still requires interpretative harmonization (particularly regarding cumulative criteria) and implementing regulations, whereas the GDPR is more established with strict independence practices.

What needs to be emphasized to management is that this is not a symbolic position. This is a governance function that determines how ready a company is to face the era of PDP law enforcement.

The Board of Directors and Commissioners must start evaluating the need for appointing a PPDP, not only by asking “are we required to?” but also “are we ready to be audited?”.

Because in an increasingly strict regulatory landscape, personal data compliance is no longer a mere technical issue. It has become a strategic issue at the board level, and the PPDP or DPO is one of the main pillars in maintaining a balance between business innovation and legal risk control.

FAQ: Understanding PPDP and DPO, and Their Role in the PDP Law