Legal Governance in Facing the Challenges of a Sustainable Digital Economy in Indonesia: A Case Study of Personal Data Protection Based on Law Number 27 of 2022 Concerning Personal Data Protection

Abstract

The development of the digital economy in Indonesia faces major challenges in maintaining sustainability through effective legal governance, particularly personal data protection as stipulated in Law Number 27 of 2022 concerning Personal Data Protection (PDP Law). This study aims to analyze legal governance in addressing the challenges of a sustainable digital economy in Indonesia, with a focus on personal data protection under Law Number 27 of 2022 concerning Personal Data Protection. This study analyzes the legal framework through a normative juridical approach using case studies of digital practices vulnerable to data leaks, such as e-commerce platforms, to identify regulatory gaps and their implementation in support of a sustainable digital economy. The analysis shows that the PDP Law provides a strong foundation for strengthening business accountability and public digital literacy, but challenges such as limited institutional capacity and consumer awareness continue to hamper its effectiveness. The case study reveals weaknesses in the data security system that require the adoption of international practices such as the GDPR to create a safe and trusted digital ecosystem. The study recommends strengthening regulations, increasing institutional oversight, and integrating educational programs as strategic steps to improve the effectiveness of personal data protection in supporting the development of an inclusive and sustainable digital economy in Indonesia.