Establishing Consumer Trust Through Data Protection Law as a Competitive Advantage in Indonesia and India


  • Rina Arum Prastyanti Faculty of Business and Law, Universitas Duta Bangsa Surakarta, Indonesia
  • Ridhima Sharma Vivekananda Institute of Professional Studies, New Delhi, India



Consumers; Data Protection Law; Trust;


Data protection laws play a crucial role in enhancing consumer trust in the digital economy, especially with the rise of online cybersecurity threats due to firm expansion. Despite advances, personal data protection laws remain controversial globally, with challenges in implementation hindering progress in some regions. This research examines the competitive advantage of building consumer trust through the Personal Data Protection Law. This research uses juridical-normative research with a legislative approach and comparison with other countries. A comparison was made with India, one of the countries with higher awareness of the importance of personal data protection laws than other countries. The results show that Consumer trust in a company is measured by the extent to which they believe the company will protect their data. Public privacy policies and government regulations that enforce data security measures and increase transparency positively impact trust by reducing concerns about privacy risks. Although data protection laws have been introduced, obstacles such as lack of legal assistance and overlapping sectoral regulations still exist, hindering the smooth implementation of these laws. Nevertheless, implementing data protection laws, such as Indonesia's Private Data Protection Law No. 27 of 2022 and India's Digital Personal Data Protection Act of 2023, is crucial for boosting consumer confidence and regulating data processing. Data security is critical in establishing and maintaining consumer trust in companies as online cybersecurity threats increase with business expansion.  


Aldboush, Hassan H. H., and Marah Ferdous, ‘Building Trust in Fintech: An Analysis of Ethical and Privacy Considerations in the Intersection of Big Data, AI, and Customer Trust’, International Journal of Financial Studies, 11.3 (2023), 90

Alhaj-Yaseen, Yaseen S., John T. Barkoulas, and Arav Ouandlous, ‘Liberalization and Asymmetric Information Flow Dynamics in the Chinese Equity Markets’, The Journal of Economic Asymmetries, 21 (2020), e00151

Alkatiri, Putri Hawa, Asep Muhamad Ramdan, and Faizal Mulia Z, ‘Analysis of Advertising Effectiveness Free Shipping and Consumer Trust to Increase Purchase Decisions’, Almana : Jurnal Manajemen Dan Bisnis, 6.2 (2022), 209–20

‘Analysis Of Digital Marketing Quality Before and During the Covid-19 Pandemic on Frozen Food Consumers in West Java Region’, Quality-Access to Success, 25.198 (2023)

Ariefulloh, Ariefulloh, Hibnu Nugroho, Angkasa Angkasa, and Riris Ardhanariswari, ‘Restorative Justice-Based Criminal Case Resolution in Salatiga, Indonesia: Islamic Law Perspective and Legal Objectives’, Ijtihad : Jurnal Wacana Hukum Islam Dan Kemanusiaan, 23.1 (2023), 19–36

Arora, Ayesha, and Tarun Jain, ‘Data Sharing between Platform and Seller: An Analysis of Contracts, Privacy, and Regulation’, European Journal of Operational Research, 313.3 (2024), 1105–18

Aryani, Almira Putri, and Liana Endah Susanti, ‘Pentingnya Perlindungan Data Pribadi Konsumen Dalam Transaksi Online Pada Marketplace Terhadap Kepuasan Konsumen’, Ahmad Dahlan Legal Perspective, 2.1 (2022), 20–29

Ashraf, Musaib, and Jayanthi Sunder, ‘Can Shareholders Benefit from Consumer Protection Disclosure Mandates? Evidence from Data Breach Disclosure Laws’, The Accounting Review, 98.4 (2023), 1–32

Bansal, Gaurav, and Fiona Fui-Hoon Nah, ‘Internet Privacy Concerns Revisited: Oversight from Surveillance and Right To Be Forgotten as New Dimensions’, Information & Management, 59.3 (2022), 103618

Basana, Sautma Ronni, Mariana Ing Malelak, and Zeplin Jiwa Husada Tarigan, ‘The Effect of Excessive Social Networking Sites on Credit Overuse Behavior through Money Trust, Money Anxiety, and Money Power’, International Journal of Data and Network Science, 8.1 (2024), 655–66

Büchi, Moritz, Noemi Festic, and Michael Latzer, ‘The Chilling Effects of Digital Dataveillance: A Theoretical Model and an Empirical Research Agenda’, Big Data & Society, 9.1 (2022), 205395172110653

Castano, Silvana, Alfio Ferrara, Emanuela Furiosi, Stefano Montanelli, Sergio Picascia, Davide Riva, and others, ‘Enforcing Legal Information Extraction through Context-Aware Techniques: The ASKE Approach’, Computer Law & Security Review, 52 (2024), 105903

Chatsuwan, Panchapawn, Tanawat Phromma, Navaporn Surasvadi, and Suttipong Thajchayapong, ‘Personal Data Protection Compliance Assessment: A Privacy Policy Scoring Approach and Empirical Evidence from Thailand’s SMEs’, Heliyon, 9.10 (2023), e20648

Chawla, Neelam, and Basanta Kumar, ‘E-Commerce and Consumer Protection in India: The Emerging Trend’, Journal of Business Ethics, 180.2 (2022), 581–604

Chen, Lin, Guofang Nan, Minqiang Li, Bing Feng, and Qiurui Liu, ‘Manufacturer’s Online Selling Strategies under Spillovers from Online to Offline Sales’, Journal of the Operational Research Society, 74.1 (2023), 157–80

Chen, Yongmin, Xinyu Hua, and Keith E. Maskus, ‘International Protection of Consumer Data’, Journal of International Economics, 132 (2021), 103517

Christensen, Tanja Kammersgaard, ‘Pre-Installed Cameras in Vehicles—New Technology from a Data Protection Law Perspective’, Computer Law & Security Review, 53 (2024), 105980

Coiduras-Sanagustín, Amparo, Eduardo Manchado-Pérez, and César García-Hernández, ‘Understanding Perspectives for Product Design on Personal Data Privacy in Internet of Things (IoT): A Systematic Literature Review (SLR)’, Heliyon, 10.9 (2024), e30357

Costantini, Federico, and Giada Soncini, ‘Healthcare Data Governance in the EU: Main Challenges in Personal Data Protection’, in Endorobotics (Elsevier, 2022), pp. 319–36

Dash, Ajitabh, and Sandeep Kumar Mohanty, ‘Technology Readiness and the Older Citizen’s Acceptance of m-Health Services in India’, Digital Policy, Regulation and Governance, 25.2 (2023), 169–83

Degutis, Mindaugas, Sigitas Urbonavičius, Linda D. Hollebeek, and Johan Anselmsson, ‘Consumers’ Willingness to Disclose Their Personal Data in e-Commerce: A Reciprocity-Based Social Exchange Perspective’, Journal of Retailing and Consumer Services, 74 (2023), 103385

Determann, Lothar, and Chetan Gupta, ‘Indian Personal Data Protection Act, 2018: Draft Bill and Its History, Compared to EU GDPR and California Privacy Law’, SSRN Electronic Journal, 2018

Dinh, Van, Dao-Van Le, Duy Duong, and Dung Pham, ‘Determinants Affecting Digital Financial Consumer Protection: Evidence from 135 Countries’, The Journal of Economic Asymmetries, 27 (2023), e00301

Divalona, Sylvia, and Sfenrianto, ‘An Empirical Study on the Factors Affecting Customer Satisfaction and Customer Loyalty in Online Transportation Apps’, Journal of System and Management Sciences, 14.4 (2023)

Esther Omolara, Abiodun, Aman Jantan, Oludare Isaac Abiodun, Humaira Arshad, Kemi Victoria Dada, and Etuh Emmanuel, ‘HoneyDetails: A Prototype for Ensuring Patient’s Information Privacy and Thwarting Electronic Health Record Threats Based on Decoys’, Health Informatics Journal, 26.3 (2020), 2083–2104

Fakhimi, Arezoo, Tony Garry, and Sergio Biggemann, ‘The Effects of Anthropomorphised Virtual Conversational Assistants on Consumer Engagement and Trust During Service Encounters’, Australasian Marketing Journal, 31.4 (2023), 314–24

Fibrianti, Nurul, and Amarru Holish, ‘Consumer Personal Data Protection: Between Expectations and Reality’, in Proceedings of the 4th International Conference on Indonesian Legal Studies, ICILS 2021, June 8-9 2021, Semarang, Indonesia (EAI, 2022)

Firmansyah Putri, Deanne Destriani, and Muhammad Helmi Fahrozi, ‘Upaya Pencegahan Kebocoran Data Konsumen Melalui Pengesahan Ruu Perlindungan Data Pribadi (Studi Kasus E-Commerce Bhinneka.Com)’, Borneo Law Review, 5.1 (2021), 46–68

Georgiadis, Georgios, and Geert Poels, ‘Towards a Privacy Impact Assessment Methodology to Support the Requirements of the General Data Protection Regulation in a Big Data Analytics Context: A Systematic Literature Review’, Computer Law & Security Review, 44 (2022), 105640

Grande, David, Nandita Mitra, Raghuram Iyengar, Raina M. Merchant, David A. Asch, Meghana Sharma, and others, ‘Consumer Willingness to Share Personal Digital Information for Health-Related Uses’, JAMA Network Open, 5.1 (2022), e2144787

Guamán, Danny S., David Rodriguez, Jose M. del Alamo, and Jose Such, ‘Automated GDPR Compliance Assessment for Cross-Border Personal Data Transfers in Android Applications’, Computers & Security, 130 (2023), 103262

Guo, Zhilong, Jie Hao, and Lewis Kennedy, ‘Protection Path of Personal Data and Privacy in China: Moving from Monism to Dualism in Civil Law and Then in Criminal Law’, Computer Law & Security Review, 52 (2024), 105928

Gupta, Shivam, Sachin Modgil, Christina W.Y. Wong, and Arpan Kumar Kar, ‘The Role of Innovation Ambidexterity on the Relationship between Cognitive Computing Capabilities and Entrepreneurial Quality: A Comparative Study of India and China’, Technovation, 127 (2023), 102835

Hadi, Abdul, Bekti Taufiq Ari Nugroho, Ahmad Muntakhib, and Choeroni Choeroni, ‘Undang-Undang Informasi Dan Transaksi Elektronik Dalam Konteks Maqasid Syari’ah’, Al-Manahij: Jurnal Kajian Hukum Islam, 14.2 (2020), 211–24

HAYES, RACHEL M., FENG JIANG, and YIHUI PAN, ‘Voice of the Customers: Local Trust Culture and Consumer Complaints to the CFPB’, Journal of Accounting Research, 59.3 (2021), 1077–1121

Hisbulloh, Moh Hamzah, ‘Urgensi Rancangan Undang-Undang (RUU) Perlindungan Data Pribadi’, Jurnal Hukum, 37.2 (2021), 119

Huang, Yanting, and Yuqing Liang, ‘Influence of Corporate Social Responsibility Considering Dual-Channel Recycling Competition and Privacy Information Protection’, Journal of Cleaner Production, 373 (2022), 133850

Juma’h, Ahmad H., and Yazan Alnsour, ‘The Effect of Data Breaches on Company Performance’, International Journal of Accounting & Information Management, 28.2 (2020), 275–301

Kadir Jaelani, Abdul, Reza Octavia Kusumaningtyas, and Asron Orsantinutsakul, ‘The Model of Mining Environment Restoration Regulation Based on Sustainable Development Goals’, Legality : Jurnal Ilmiah Hukum, 30.1 (2022), 131–46

Kantachote, Krittiya, ‘Micromanagement of Foreign Domestic Workers in Singapore: The Influence of State Regulations and Laws’, Heliyon, 9.7 (2023), e17679

Karjalainen, Tuulia, ‘The Battle of Power : Enforcing Data Protection Law against Companies Holding Data Power’, Computer Law & Security Review: The International Journal of Technology Law and Practice, 47.August 2018 (2022), 105742

Ke, T. Tony, and K. Sudhir, ‘Privacy Rights and Data Security: GDPR and Personal Data Markets’, Management Science, 69.8 (2023), 4389–4412

Kusumaningtyas, Reza Octavia, Rahayu Subekti, Abdul Kadir Jaelani, Asron Orsantinutsakul, and Utkarsh K Mishra, ‘Reduction of Digitalization Policy in Indonesian MSMEs and Implications for Sharia Economic Development’, JURIS (Jurnal Ilmiah Syariah), 21.2 (2022), 157

Loertscher, Simon, and Leslie M. Marx, ‘Digital Monopolies: Privacy Protection or Price Regulation?’, International Journal of Industrial Organization, 71 (2020), 102623

Lohmöller, Johannes, Jan Pennekamp, Roman Matzutt, Carolin Victoria Schneider, Eduard Vlad, Christian Trautwein, and others, ‘The Unresolved Need for Dependable Guarantees on Security, Sovereignty, and Trust in Data Ecosystems’, Data & Knowledge Engineering, 151 (2024), 102301

Malgieri, Gianclaudio, and Frank Pasquale, ‘Licensing High-Risk Artificial Intelligence: Toward Ex Ante Justification for a Disruptive Technology’, Computer Law & Security Review, 52 (2024), 105899

Masyhar, Ali, and Silaas Oghenemaro Emovwodo, ‘Techno-Prevention in Counterterrorism: Between Countering Crime and Human Rights Protection’, Journal of Human Rights, Culture and Legal System, 3.3 (2023), 625–55

Maurya, Himani, and Suneel Prasad, ‘Data Protection Laws and a Comparative Analysis of GDPR and PDPB’, 2022, p. 030077

Namysłowska, Monika, and Agnieszka Jabłonowska, ‘Enforcement and Effectiveness of Consumer Law in Poland’, 2018, pp. 433–55

Nareswari, Ninditya, Małgorzata Tarczyńska-Łuniewska, and Rizqi Umar Al Hashfi, ‘Analysis of Environmental, Social, and Governance Performance in Indonesia: Role of ESG on Corporate Performance’, Procedia Computer Science, 225 (2023), 1748–56

Nasabi, Afreen Nishat A., and Sujaya H., ‘Consumer Buying Behaviour Trends of E-Commerce in India- A Case Study’, International Journal of Management, Technology, and Social Sciences, 2022, 736–50

Nasser A., Alharbi Nesreen, and Yanhui Li, ‘Effects of Privacy Policy and Government Regulation on Trust of Consumers in Saudi Arabia: An Empirical Study’, International Journal Of Innovation And Economic Development, 5.4 (2019), 7–24

Niebel, Crispin, ‘The Impact of the General Data Protection Regulation on Innovation and the Global Political Economy’, Computer Law & Security Review, 40 (2021), 105523

Nuzulita, Nania, and Apol Pribadi Subriadi, ‘The Role of Risk‐benefit and Privacy Analysis to Understand Different Uses of Social Media by Generations X, Y, and Z in Indonesia’, The Electronic Journal Of Information Systems In Developing Countries, 86.3 (2020)

Pieper, Nadine, and David M. Woisetschläger, ‘Customer Misbehavior in Access-Based Mobility Services: An Examination of Prevention Strategies’, Journal of Business Research, 171 (2024), 114356

Ranade, Ketki, Arjun Kapoor, and Tanya Nicole Fernandes, ‘Mental Health Law, Policy & Program in India – A Fragmented Narrative of Change, Contradictions and Possibilities’, SSM - Mental Health, 2 (2022), 100174

Robertson, Viktoria H.S.E., ‘Excessive Data Collection: Privacy Considerations and Abuse of Dominance in the Era of Big Data’, SSRN Electronic Journal, 2019

Rodríguez-Priego, Nuria, Lucia Porcu, and Philip J. Kitchen, ‘Sharing but Caring: Location Based Mobile Applications (LBMA) and Privacy Protection Motivation’, Journal of Business Research, 140 (2022), 546–55

Rodríguez-Priego, Nuria, Lucia Porcu, María Belén Prados Peña, and Esmeralda Crespo Almendros, ‘Perceived Customer Care and Privacy Protection Behavior: The Mediating Role of Trust in Self-Disclosure’, Journal of Retailing and Consumer Services, 72 (2023), 103284

Rupp, Valentin, and Max von Grafenstein, ‘Clarifying “Personal Data” and the Role of Anonymisation in Data Protection Law: Including and Excluding Data from the Scope of the GDPR (More Clearly) through Refining the Concept of Data Protection’, Computer Law & Security Review, 52 (2024), 105932

Segijn, Claire Monique, Suzanna J. Opree, and Iris Van Ooijen, ‘The Validation of the Perceived Surveillance Scale’, Cyberpsychology: Journal of Psychosocial Research on Cyberspace, 16.3 (2022)

Selita, Fatos, Robert Chapman, Yulia Kovas, Vanessa Smereczynska, Maxim Likhanov, and Teemu Toivainen, ‘Consensus Too Soon: Judges’ and Lawyers’ Views on Genetic Information Use’, New Genetics and Society, 42.1 (2023)

Shah, Priya, Neha Mehta, and Sweety Shah, ‘Exploring the Factors That Drive Millet Consumption: Insights from Regular and Occasional Consumers’, Journal of Retailing and Consumer Services, 76 (2024), 103598

Sharma, Bhawana, Lokesh Sharma, Chhagan Lal, and Satyabrata Roy, ‘Explainable Artificial Intelligence for Intrusion Detection in IoT Networks: A Deep Learning Based Approach’, Expert Systems with Applications, 238 (2024), 121751

Sinha, Vikram, and Sharmadha Srinivasan, ‘An Integrated Approach to Competition Regulation and Data Protection in India’, CSI Transactions on ICT, 9.3 (2021), 151–58

Siti Yuniarti, ‘Protection Of Indonesia’s Personal Data After Ratification Of Personal Data Protection Act’, Progressive Law Review, 4.02 (2022), 54–68

Şık, Ayhan Serkan, Arsev Umur Aydınoğlu, and Yeşim Aydın Son, ‘Assessing the Readiness of Turkish Health Information Systems for Integrating Genetic/Genomic Patient Data: System Architecture and Available Terminologies, Legislative, and Protection of Personal Data’, Health Policy, 125.2 (2021), 203–12

Smrithi, Sukesh, Hephzibah Miriam D. Doreen, and Robin C. R. Rene, ‘An Analysis of the Increasing Cases of Data Breaches in India’, I-Manager’s Journal on Software Engineering, 17.3 (2023), 38

Soren, Anup Anurag, and Shibashish Chakraborty, ‘Adoption, Satisfaction, Trust, and Commitment of over-the-Top Platforms: An Integrated Approach’, Journal of Retailing and Consumer Services, 76 (2024), 103574

Stapels, Julia G., Angelika Penner, Niels Diekmann, and Friederike Eyssel, ‘Never Trust Anything That Can Think for Itself, If You Can’t Control Its Privacy Settings: The Influence of a Robot’s Privacy Settings on Users’ Attitudes and Willingness to Self-Disclose’, International Journal of Social Robotics, 15.9–10 (2023), 1487–1505

‘Strengthening the Security and Privacy of National Identity Numbers (NINs) in Smart Contract Mechanisms through AES Encryption’, Journal of Logistics, Informatics and Service Science, 10.4 (2023)

Strycharz, J., J. Ausloos, and N. Helberger, ‘Data Protection or Data Frustration? Individual Perceptions and Attitudes Towards the GDPR’, European Data Protection Law Review, 6.3 (2020), 407–21

Strycharz, Joanna, Eunah Kim, and Claire M. Segijn, ‘Why People Would (Not) Change Their Media Use in Response to Perceived Corporate Surveillance’, Telematics and Informatics, 71 (2022), 101838

Strzelecki, Artur, and Mariia Rizun, ‘Consumers’ Security and Trust for Online Shopping after GDPR: Examples from Poland and Ukraine’, Digital Policy, Regulation and Governance, 22.4 (2020), 289–305

Tan, Alyssa Jean L., Lauren T. Yap, Elise Francesca L. Salud, and Mendiola Teng‐Calleja, ‘Leadership Experiences of Bicultural Business Leaders: An Interpretative Phenomenological Analysis’, Asian Journal of Social Psychology, 26.4 (2023), 547–59

Tao, Shouzheng, Yezheng Liu, and Chunhua Sun, ‘Understanding Information Sensitivity Perceptions and Its Impact on Information Privacy Concerns in E-Commerce Services: Insights from China’, Computers & Security, 138 (2024), 103646

Tedjakusuma, Adi Prasetyo, Hui Nee Au Yong, Erna Andajani, and Zam Zuriyati Mohamad, ‘Intention to Purchase Halal Health Supplement Online: Lessons Learned from the Health Crisis’, Heliyon, 9.9 (2023), e19840

Tikkinen-Piri, Christina, Anna Rohunen, and Jouni Markkula, ‘EU General Data Protection Regulation: Changes and Implications for Personal Data Collecting Companies’, Computer Law & Security Review, 34.1 (2018), 134–53

Upadhyay, Jyoti, Avita Katal, and Preeti D Mehta, ‘Self-Regulated Learning, an Important Tool to Improve Learning Capability: An Indian Case Study’, The International Journal of Learning in Higher Education, 31.1 (2023), 69–95

Wirdiyanti, Rosnita, Inka Yusgiantoro, Agus Sugiarto, Aprillia Dwi Harjanti, Indra Yudha Mambea, Subiakto Soekarno, and others, ‘How Does E-Commerce Adoption Impact Micro, Small, and Medium Enterprises’ Performance and Financial Inclusion? Evidence from Indonesia’, Electronic Commerce Research, 23.4 (2023), 2485–2515

Wu, Zihao, Siliang Lin, Tianhao Chen, Chunyang Luo, and Hui Xu, ‘Does Effective Corporate Governance Mitigate the Negative Effect of ESG Controversies on Firm Value?’, Economic Analysis and Policy, 80 (2023), 1772–93

Zhang, Jianxiong, Sa Li, Shichen Zhang, and Rui Dai, ‘Manufacturer Encroachment with Quality Decision under Asymmetric Demand Information’, European Journal of Operational Research, 273.1 (2019), 217–36

Zhang, Shichen, Liqun Wei, and Jianxiong Zhang, ‘Demand Forecast Sharing for a Dominant Retailer with Supplier Encroachment and Quality Decisions’, European Journal of Operational Research, 301.1 (2022), 39–50




Citation Check