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BIG-DATA-Virtual-Jurisdiction-Fintech-In-Indonesia BIG DATA Virtual Jurisdiction & Financial Technology (Fintech) in Indonesia i ii iii BIG DATA © 2018. Virtual Jurisdiction and Financial All rights reserved. This book or any Technology (FinTech) in Indonesia portion thereof may not be reproduced or used in any manner whatsoever without Dr. Danrivanto Budhijanto, SH., LL.M in IT Law, FCBArb. the express written permission of the publisher except for the use of brief Copyright © 2018 quotations in a book review.All rights reserved. This book or any portion thereof Fisrt Printing, 2018 April Publisher’s Cataloging-in-Publication data Budhijanto, Danrivanto LoGoz Publishing BIG DATA: Virtual Jurisdiction and Financial Technology (FinTech) in Indonesia Soreang Indah V-20 Bandung 40911 ISBN 978-602-9272-74-1 Telp/Fax +6222-85874472 –1st Ed. – 1st Printing. +62 81322 70 2828 – Bandung, Indonesia: Logoz Publishing, 2018 [email protected] 1 vol., xiv + 171 p.; ilus.; 15 x 21 cm ISBN 978-602-9272-74-1 Editor Aep Gunarsa Cover Designer Hendra Kurniawan iv Introduction We have now entered the final evolution of man, from Homo Erectus to Homo Informaticus. Humans being who had just stood upright, became a “digital being” who every wake-up every morn- ing instantly check and update their status on social media digital. People are shocked if not giddy in the Digital Information Age, es- pecially with the widespread users of smartphones and easy access to fast Internet access. All of that has a real impact on the philo- sophical, historical, humanist, sociological, psychological, and eco- nomic character. It even leads to illegal acts such as fraud, hoax, bullying, kidnapping and rape, as well as terrorism and radicalism. The theoretical approach justifies that those who can antici- pate problems due to technology use are the legal system, not the technology itself. Gregory N. Mandel provides the firmness of the subject before discussing his thoughts in “History Lessons for a General Theory of Law and Technology”, that the rapid advance- v ment of technology is not risk-free. These risks often lead to new problems and new disputes that must be responded by a legal sys- tem. Utilization of information from Big Data including data collec- tion activities; data crawling; and data behavior analyzing. The data should be monetized and evaluated in the financial indicator be- fore being able to become a competitive value as a business model. The business model that is then based on applications is not only network based and services, both in electronic commerce (e-com- merce) and financial technology (FinTech). The Author discusses Big Data’s discussion of the protection of virtual jurisdiction; neo- Cyberlaw with legislation and regulation of digital data protection in Indonesia; and the financial technology (FinTech) revolution. Government of Republic of Indonesia (R.I.) seeks to encourage and protect social media netizen to stay safe and comfortable surf- ing in the virtual world based on legislation instrument Law Num- ber 11 Year 2008 regarding Electronic Information and Transac- tions (Cyber Law 2008) and Law Number 19 Year 2016 regarding Amendment to Law Number 11 Year 2008 regarding Electronic Information and Transactions (Cyber Law 2016). Revision of the Cyber Law 2008 in 2016 as evidence of the support of respected representatives of the people in the House of Parliament to the Gov- ernment to exercise the rule of law and governance of virtual juris- dictions. The Government is obliged to protect all Indonesian people in the virtual world or cyberspace. The state still has virtual jurisdic- tion that cannot be reduced and no one can commit a crime with- out being punished by law. vi There are at least 5 (five) important and new things that make the revision of the Cyber Law 2016 become relevant to the fulfill- ment of a sense of justice for people who use virtual jurisdictions where to express opinions, namely First, to avoid imprisonment by lowering the imprisonment of 6 (six) year to 4 (four) years. With this decrease in threat, the reporting parties and the reporters have the same position until it can be proven in court who is right. The Re- ported Party need not be detained in advance because of the im- prisonment under 5 years. Second, adding provisions on “right to be forgotten” or “the right to be forgotten” to the provisions of Ar- ticle 26. Later the Electronic System Operator shall remove any ir- relevant Electronic Information, which is under its control at the request of the person concerned on the basis of the court’s deter- mination, and provide its mechanism. Third, protect the public from negative content. There are two ways, namely protection in terms of access restrictions and in terms of education. In terms of content, the Government always gets input from various parties, especially related to pornographic content and gambling. Fourth, is to ac- commodate the decision of the Constitutional Court by amending the arrangement of interception or eavesdropping procedures, from those previously stipulated in the Government Regulation to be regulated in such the Law. Fifth, the assertion that legal evidence of the interception result is an interception conducted in the frame- work of law enforcement at the request of law enforcement offic- ers. Andrew McAfee from Berkman Center for Internet and Society at Harvard Law School stated, “The world is one big data prob- vii lem.” I am hoping this book be a part how to understand and to keep stay happy life in our world. viii Acknowledgments The materials used in this Book are based on references from sci- entific writings in the form of books, scientific journals, research reports, dictionaries and other documents whereby all copyright inherent is fully protected by existing law for the authors. The Au- thor specifically expressed his gratitude for the excellent and ex- traordinary help to Aep Gunarsa as Chief of Editor and Hendra Kurniawan as Book Cover Designer. Authors also thank the pub- lisher Logoz Publishing. ix x Content INTRODUCTION ............................................................... v ACKNOWLEDGEMENTS ................................................... ix FIRST VIRTUAL JURISDICTION IN INFORMATION TECHNOLOGY LEGISLATIONS ...................1 A. The Convergence and Information Technology Legislations ................................ 2 1. Virtual Jurisdiction Framework in The Theory of Legal Convergence ......................... 4 2. Legal Theory on Information Technology Convergence ........................................ 7 B. The Virtual Jurisdictions in Information Technology ........................................... 11 1. Purpose of The Regulation ...................................... 12 2. The Principles of Regulation.................................... 14 xi SECOND THE NEO-CYBERLAW IN INDONESIA ............................... 25 A. Indonesian Law of Electronic Information and Transactions ........................................ 26 1. Amendment to Norms Definition of Legislation .........26 2. Amendment of Electronic Evidence ......................... 26 3. Change of Norms of Personal Data Protection ........... 38 4. Changes in the Norms of Prohibited Acts/ Illegal Acts (Cybercrimes)........................................ 40 5. Changes in Norms of Interception and Prevention ..... 42 6. Amendment of Criminal Law Procedure Law in the Field of Information Technology and Electronic Transactions .................................... 46 7. Amendment of Norms of Criminal Sanctions............. 51 B. Digital data protection in Indonesia ................................54 1. Constitution and Legislations on Digital Data Protection .......................................54 2. Regulation on Digital Data Protection....................... 60 C. Facebook Case in Indonesia ......................................... 63 1. Big Data Tsunami: Personalization or Politicization ....63 2. Urgency Legislation Protection of Personal Data: Privacy and Competition ............... 66 3. Personal Data Protection Models in Virtual Justice ..................................................... 70 xii THIRD THE FINANCIAL TECHNOLOGY (FinTech) REVOLUTION .................................................................. 73 A. Big Data and Financial Technology (FinTech) Revolution ..................................74 B. Financial Technology Regulations (FinTech) in Indonesia ................................................................80 1. Bank Indonesia Regulation (PBI) Number 19/12/PBI/2017regarding Implementation of Financial Technology.................. 81 2. Member of Governor Board Regulation Number 19/14/PADG/2017 regarding Regulatory Sandboxes of Financial Technology (PADG Regulatory Sandbox) .................84 3. Regulation of Board of Governor Member Number 19/15/PADG/2017 regarding the Procedures for Registration, Delivery of Information and Monitoring of Financial Technology Provider.............................................. 88 BIBLIOGRAPHY ............................................................... 91 GLOSSARIES .................................................................. 107 INDEXES ........................................................................ 115 EXIBITS LAW NO. 11 YEAR 2008 REGARDING ELECTRONIC INFORMATION AND TRANSACTIONS ........................... 120 xiii xiv Virtual Jurisdiction in Information Technology F I R S T Virtual Jurisdiction in Information Technology 1 BIG DATA - Virtual Jurisdiction & Financial Technologi (FinTech) in Indonesia A. THE CONVERGENCE AND INFORMATION
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