STATE OWNED ENTERPRISE (BUMN) 4.0 AN ACCELERATION OF DIGITAL TRANSFORMATION: HAS IT CONSIDER DATA PRIVACY PROTECTION?

BUMN 4.0 refers to an action plan for industries in Indonesia to implement cyber-physical
systems that promote connectivity to users, machines, and accurate data.

Digital transformation is necessary and provides financial benefits since the purpose of digital transformation is to increase revenue.

Digital transformation is the foundation of revenue marketing, it accelerates centricity and it allows for marketers to take revenue accountability, transformation marketing from a cost center to a revenue center.

In this BUMN 4.0 planning, several significant trends, such as global urbanisation, geoeconomic and geo-political changes, competition for natural resources and digital transformation, must be
implemented to accommodate the needs of business goals and to keep up with technology as well as the development of laws.

The dramatic changes are illustrated from the newfound acceptance of Work from Home (“WFH”) during the Pandemic.

The need for digital skills is needed and in great demand by business actors in the business sector and other fields.

In this case, Information, Communication and Technology are positioned as strategic business
partners to meet needs in digital era.

In 2018, Pertamina, an Indonesian oil and gas company, started its journey in digital transformation.

In 2022, Pertamina launched the Pertamina Digital Community (MITA). This is a forum for preparing agile workers who understand technology.

MITA promotes things such as increasing digital innovation, increasing value creation, digital acceleration index, increasing Indonesia Industry 4.0 (INDI 4.0) and other business opportunities. as many as 17 out of 107 State-Owned Enterprises had utilize INDI 4.0 in the year 2019 and 2020 in implementing industrial technology 4.0 in running the financial services activities.

In 2017, PT Kimia Farma, a BUMN in Pharmacy, mapped out how to prioritize various fields in pharmaceuticals to accelerate implementation or digital adaptation. Some of PT Kimia Farma’s portfolios in, amongst others, manufacturing, and retail, are several portfolios that can be adopted and are relevant for digitalization.

The first aim in digitization in the pharmaceutical industry should be to enhance direct interaction with customers.

Customers should experience digital implementation directly and how it improves their lives. The goal of digitalization in the health sector is noble:

facilitating and making health more affordable or accessible by increasing user or patient satisfaction and expanding flexibility, improving community health, improving the clinical experience, and reducing costs for health. In the pharmaceutical field, digital adoption has been faster because digital adoption is used in the ecosystem of pharmaceutical companies, including use in the form of medical devices and
products; with distributors using technology for its logistics, and healthcare providers and retailers,
using technology to track current pharmaceutical product users.

The market in the pharmaceutical field is vast, and the challenge faced in this field is how to create value for customers.

Customers in this context are users or us as patients, and how to create greater synergy between one hospital and another.

In the future, digitalization will ultimately be a benefit to both the patient and the community such that there is a tangible effect on the patient.

Value chains will be improved where no patient will buy a drug twice. The impact of this digitalization can be seen broadly and cannot be seen solely from the mastery of technology.

Referring to the digital transformations above, we cannot exclude dispute or legal risk that may arises. Indonesia has recently enacted a Data Protection Regulation, to minimalize potential threats that this technology can imposed due to the collection of Personal Data as stated in Article 35 which regulates the need for Personal Data Processor to protect and ensure the safety of data that is being use.

The Personal Data Protection is related deeply with health sector especially the renowned application Pedulilindungi, which is regulated by the Kominfo Regulation Number 171 Tahun 2020 regarding Establishment of Pedulilindungi Application in the Context of Implementing Health Surveillance for Handling Corona Virus Disease 2019 (Covid-19).

As reference, on 16 November 2022, a hacker that goes by the name of Bjorka hacked into Pedulilindungi and stole 3,2 Billion Data and sold it through a website called Breached.to.

The data included personal data, vaccination data and tracking history data, including application check-in history.

Bjorka announced that the data leaked was around 48 Gigabyte (GB) of compressed data, 157 GB of uncompressed data with a total of 3.250.144.777 data leaked.

In respond to this, the UU PDP article 46 may be applied regarding the obligation of the personal data operator that they must inform the personal data subject in written form at the latest of 3×24 Hours after the data leaked happened.

To conclude, applying technology in all the BUMN sectors is a step towards BUMN 4.0, where BUMN
companies will implement technology in their respective business fields. Implementing technology is one way to speed up processes, add flexibility to business processes, provide new experiences for users, and reduce costs for business operations services.

In this case, PT Pertamina (Health division) and PT Kimia Farma have started implementing technology into the structure of the daily work processes of their fields.

This is an early example of the upcoming SOE 4.0.

UU PDP will also play a big role in providing assurance and protection to every Personal Data subject to further minimize the vulnerability of illegal activities concerning personal data. (JXR)

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