Jeges Imanuelita Gultom, Debora Debora, Jinner Sidauruk

Legal Protection of Personal Data and Micro, Small, and Medium Enterprise (MSME) Data in the People's Business Credit Application Process

Introduction

Legal protection of personal data and micro, small, and medium enterprise (msme) data in the people's business credit application process. Legal protection of personal and MSME data in Indonesian People's Business Credit (KUR) applications is discussed. Study finds suboptimal data security, highlighting regulatory roles & need for stronger regulations.

Abstract

A stable and growing economy is crucial for the advancement of a country, but unemployment remains a significant challenge faced by the government. To address this, the Indonesian government has promoted the development of MSMEs to create job opportunities and support the national economy. Since 2018, the People's Business Credit (KUR) program has been launched to support MSME financing through low-interest funding distributed by banks or financial institutions. This study discusses the legal protection of personal data and MSME data in the KUR application process, as well as the role of regulatory institutions such as the Financial Services Authority (OJK) and the Financial and Development Supervisory Agency (BPKP). The study's findings indicate that, despite the existence of Law No. 27 of 2022 on Personal Data Protection, the protection of MSME data remains suboptimal. More specific regulations are needed to ensure the security and confidentiality of data, thereby preventing misuse by irresponsible parties. In the implementation of KUR, OJK is responsible for maintaining the confidentiality of consumer financial data, while BPKP supervises the distribution of KUR funds through an integrated information system. Strengthening the roles of these institutions is vital to enhance accountability and the protection of MSME data, while also supporting the success of the KUR program in driving national economic growth.

Review

This paper addresses a highly pertinent issue concerning the legal protection of personal and MSME data within Indonesia's People's Business Credit (KUR) application process. Given the critical role of Micro, Small, and Medium Enterprises in fostering economic stability, job creation, and national development, the study's focus on safeguarding sensitive data in financial inclusion programs like KUR is commendable. By examining the existing legal frameworks and the involvement of key regulatory institutions, the research sheds light on a vital intersection of economic policy, data privacy, and governance, which is essential for building trust and ensuring the long-term success of such initiatives. The study's findings reveal a significant gap: despite the enactment of Law No. 27 of 2022 on Personal Data Protection, the protection afforded to MSME data specifically within the KUR application process remains "suboptimal." This crucial insight underscores the necessity for more granular and targeted regulations to enhance data security and confidentiality, thereby mitigating the risk of misuse by unscrupulous parties. The research also clearly delineates the respective roles of the Financial Services Authority (OJK) in maintaining consumer financial data confidentiality and the Financial and Development Supervisory Agency (BPKP) in overseeing KUR fund distribution. This distinction highlights the multi-faceted regulatory landscape involved in ensuring both financial integrity and data protection. Ultimately, the paper makes a strong case for strengthening the capacities and enforcement mechanisms of OJK and BPKP. Enhancing their roles is presented as vital not only for improving accountability and the protection of MSME data but also for bolstering the overall success of the KUR program and, by extension, national economic growth. This review suggests that the study provides a valuable contribution to the discourse on data governance in development finance, offering clear implications for policymakers and financial institutions in Indonesia to develop more robust, specific, and effective regulatory frameworks for safeguarding sensitive data.

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