One Data Indonesia Draft Bill to Regulate Funding Schemes from the State Budget to Innovative Financing Mechanisms

The Government and the House of Representatives of the Republic of Indonesia (“DPR RI”) are currently formulating a comprehensive funding framework under the One Data Indonesia Draft Bill (“SDI Draft Bill”) to support the implementation of national data governance. During the deliberation of the Draft Bill, the Working Committee of the Legislative Body (“Panja Baleg”) of the DPR RI agreed to streamline the funding mechanism by consolidating various provisions into implementing regulations.

“All provisions relating to innovative financing and blended funding will be consolidated into a single Government Regulation to enhance efficiency,” stated I Nyoman Parta, a member of the Panja Baleg.

Funding for the implementation of the One Data Indonesia initiative will be sourced from the State Revenue and Expenditure Budget (Anggaran Pendapatan dan Belanja Negara – “APBN”), Regional Revenue and Expenditure Budget (Anggaran Pendapatan dan Belanja Daerah – “APBD”), and other lawful sources, including through innovative financing mechanisms. Innovative financing refers to funding schemes contributed by non-government stakeholders, whether at the national or global level, to accelerate sustainable development through collaborative approaches. 

The allocated funds will be directed toward supporting the governance of core national data, strengthening data security, and enhancing human resource capacity. In addition, the SDI Draft Bill provides for incentives to be granted to institutions that demonstrate strong performance, including additional budget allocations and priority in system integration programs. The Government may also recognize contributions from individuals and corporations through fiscal incentives and certificates of appreciation for their role in strengthening the national data ecosystem.