Why GRC Systems Are Important for Complying with Indonesia’s Personal Data Protection Law (PDP Law)

Introduction to GRC Systems and the PDP Law

What Is a GRC System (Governance, Risk, and Compliance)?

A GRC system is a framework that helps companies maintain governance, manage risks, and fulfill regulatory obligations. With this system, organizations can navigate legal challenges while improving efficiency.

Law No. 27 of 2022 on Personal Data Protection (PDP)

The PDP Law regulates how personal data is collected, used, and protected. Non-compliant companies risk administrative or criminal penalties. The OECD also highlights the importance of data governance, making regulations like the PDP Law an essential part of a long-term business strategy.

Common Challenges Companies Face in Regulatory Compliance

Many organizations lack clear data flow mapping, making it difficult to control potential data leaks.
In addition, digital transformation increases cybersecurity risks. Another challenge comes from third-party vendors who, if not properly monitored, can become a source of compliance issues.

How GRC Systems Support PDP Compliance

• Automated Data Mapping and ROPA
  A GRC system helps companies document their Records of Processing Activities, ensuring transparency and accountability.

• The Importance of Privacy Impact Assessments (PIA)
  Conducting risk analysis through PIA before launching new products minimizes the potential for legal violations.

• Data Subject Rights Management
  Customers’ rights to access, correct, or delete their data can be managed more efficiently with a GRC system.

• Vendor Risk Management
  PwC highlights that modern GRC strategies also emphasize vendor risk management—ensuring companies focus not only on internal governance but also on external partners.

Case Studies: Companies Implementing GRC

Financial institutions have long used GRC systems to meet OJK (Financial Services Authority) requirements.
Meanwhile, e-commerce companies handling millions of customer data records adopt similar systems to maintain consumer trust.
Adaptist Consulting provides the Privee solution to help Indonesian businesses implement these practices more easily.

Conclusion: GRC Systems as a Long-Term Investment

A GRC system not only supports legal compliance but also strengthens corporate reputation and enhances public trust.
By adopting modern solutions, companies can ensure sustainable operations while staying compliant with regulations.
For more on access security, check out the related article: Biometric IAM and Privacy in Indonesia, which explores identity management practices.