ASEAN Model Contractual Clauses for Cross Border Data Flow mechanism (MCCs)

Digital data governance has become increasingly crucial in ASEAN. Appropriate regulation is needed to facilitate and protect cross-border data flow, which has been intensifying as the region is becoming more economically integrated and digitized. Recognizing this need and supporting the economic integration and digital transformation in the region, the ASEAN Digital Ministers has approved ASEAN Model Contractual Clauses for Cross Border Data Flow mechanism (MCCs) on 22 January 2021.

MCCs provides contractual terms and conditions that may be included in the legally binding agreements between parties transferring personal data to each other across borders. MCCs aims to harmonize cross-border data flow standards in the region and increase ASEAN Member States (AMSs) capacity in accelerating digital transformation agenda and building a trusted, transparent, and accountable digital environment for businesses. MCCs is developed based on the ASEAN Framework on Personal Data Protection which derives its principles upon the principles of the APEC Privacy Framework or OECD Privacy Guidelines, which lends itself to be interoperable with other global data protection systems such as APEC’s Cross-Border Privacy Rules (CBPR) and EU’s General Data Protection Regulation (GDPR).

The Obligations under the ASEAN MCCs

• The obligations in ASEAN MCCs are derived from the ASEAN Framework on Personal Data Protection (2016) that are in line with global best practices. The obligations encompass key principles of data protection, including:
• Providing Legal Basis for Collection, Use, and Disclosure: The Data Exporter warrants that the data is collected, used, disclosed, and transferred in a manner aligned with prevailing laws in AMS. In the absence of such law, Data Subject shall have been notified and given consent to the purposes, where and reasonable and practicable.
• Baseline Data Protection Clauses: The Data Importer will process the data in accordance with the baseline clauses in the ASEAN Framework on Personal Data Protection (2016) principles related to Collection, Notification, Purpose, Accuracy, Security Safeguards, Access and Correction, Transfers, Retention, and Accountability.
• Data Breach Notification: The Data Importer shall notify the relevant authorities and Data Exporter as soon as it becomes aware of any loss or unauthorized use, copying, modification, disclosure, destruction of, or access to, personal data under the contract.
• Due Diligence: Data Exporters are encouraged to conduct due diligence on other parties to meet the requirements of the MCCs. Data Importers are also encouraged to conduct due diligence on them if there is the onward transfer of the data by the Data Importers to third-party importers.

Using the MCCs

The private sectors in AMS may adopt the MCCs, in the transfer of data to other parties in other AMS or in non-AMS. To adopt the MCCs, the private sectors must include the key data protection obligations in their commercial contracts between the parties to the data transfers. The adoption of MCCs is voluntary for business entities in ASEAN, and the parties may modify the contractual clauses as long as it is aligned with the principles in the ASEAN Framework on Personal Data Protection (2016). The parties may also add clauses, as mutually agreed, that are specific to their business process or industry sector, including clauses on specific rules imposed by the sector’s regulatory authority. 

Besides MCCs, private sectors are also free to use any other valid data transfer mechanisms recognized by some jurisdictions within ASEAN, including, but not limited to, self-assessment based assurance that data transferred from overseas is protected to a comparable level of protection, binding corporate rules, certifications, which may include ISO series relating to security and privacy techniques, APEC Cross Border Privacy Rules, and Privacy Recognition for Processor Systems, or other legally recognized mechanisms.

The ASEAN MCCs provide two modules for use in two common transfer scenarios, as follow:

• Controller-to-Processor Transfer: For use by the Data Exporters who transfer data to Data Importers who are contractors or vendors, who will process data on behalf of the Data Exporters. This also includes onward transfers from data processors to the downstream data processor.
• Controller-to-Controller Transfer: For use when the Data Exporter transfers data to the Data Importer for its own purposes and may have full control of the data upon receipt.

Benefits of ASEAN MCCs for Businesses

• Ready-to-use flexible template: MCCs reduce length of negation for contracts and are consistent with ASEAN PDP Principles.
• Easy ASEAN Adoption: No requirement for new laws and contractual disputes regarding MCCs may be resolved in civil courts. All private sectors, including SMEs may use MCCs.

The full text of the ASEAN MCCs is available at this link.

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 Other Recent Updates 

One-stop SME information portal for international oriented business launched

The ASEAN Coordinating Committee on Micro, Small, and Medium Enterprises (MSME) launched ASEAN Access in Bangkok on 16 June 2021. ASEAN Access is a one-stop business information gateway for international-oriented businesses to expand their market outreach in ASEAN and beyond.  The web portal aims to provide trade-related information and market opportunities by connecting businesses to service providers in areas of distribution, transportation and logistics, market research, and consultancy on intellectual properties, laws, and regulations.  The ASEAN Access is administered by the Office of SMEs Promotion Thailand, developed with the support of the Federal Government of Germany and technical assistance from the German Agency for International Cooperation (GIZ). 

ASEAN-EU Comprehensive Air Transport Agreement (AE CATA)

ASEAN and the European Union (EU) and its Member States have concluded the negotiations on the ASEAN-EU Comprehensive Air Transport Agreement (AE CATA) at the Extraordinary ASEAN-EU Senior Transport Officials Meeting held virtually on 2 June 2021. The agreement facilitates the airlines of ASEAN and the EU to fly any number of services between both regions, and also fly up to 14 weekly passenger services and any number of cargo services via and beyond to any third country. The agreement is expected to rebuild air connectivity between ASEAN and Europe in the post-COVID 19 pandemic and open new growth opportunities for the aviation industry in ASEAN and the EU.

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The 30^th Meeting of the ASEAN Director-General of Customs

The 30th Meeting of the ASEAN Customs Directors-General was held virtually on 8-10 June 2021. The meeting commended the achievements and work progress in the completion of the Strategic Plans of Customs Development (SPCDs) 2016-2020, which has been 99% implemented, and placed Customs as the body with the highest output delivery of 78% under Characteristic A, A Highly Integrated and Cohesive Economy, as reported in the final report of the Mid-Term Review of the ASEAN Economic Community Blueprint 2025. The meeting also welcomed the Live Operation of the ASEAN Customs Declaration Document (ACDD), which started on 31 December 2020 in Cambodia, Myanmar, and Singapore, and followed by Malaysia and Thailand on 31 March 2021. The meeting is looking forward to the Live Operation in the remaining AMS within 2021.

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ASEAN Workshop on the Circular Economy

The ASEAN Secretariat conducted an online workshop on Circular Economy (CE) on 30 June 2021, to gather relevant sectoral bodies and stakeholders, including the ASEAN Business Advisory Council and the Joint Business Councils, to discuss the draft Framework for Circular Economy for the ASEAN Economic Community (AEC). The Framework is hoped to guide the work of the AEC on CE, by identifying strategic priorities and priority initiatives, and exploring cross-pillar and cross-sectoral collaborations. The strong support of stakeholders, particularly the private sector, would be crucial in ensuring ASEAN’s transition towards CE. The draft Framework was developed with the Economic Research Institute for ASEAN and East Asia (ERIA).

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Unlocking RCEP for Business Webinar Series: Trade in Goods

The ASEAN Secretariat, in collaboration with the East Asia Business Council, organised a webinar on RCEP on 26 July, focusing on goods related chapters of the Agreement. The topics discussed included tariff liberalisation, non-tariff measures, and trade remedies. Noting the importance of SMEs for the region’s economy, panellists highlighted the importance of deeper engagement with the SMEs and recommended the ASEAN Secretariat to hold more sessions involving regional and national business councils. The webinar marked the launch of a series of webinars the ASEAN Secretariat will be hosting throughout the year and the video recording of the first session is available at this link. 

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Upcoming Events

• ASEAN Senior Economic Officials’ Meeting 3/52 (SEOM) (2 - 4 August 2021)
• Senior Economic Officials Meetings – Dialogue Partners Consultations (5,11,16 August 2021)
• 12^th ASEAN Connectivity Symposium: Promoting Recovery and Resilience through Connectivity (26 August 2021)
• 53^rd ASEAN Economic Ministers’ (AEM) Meeting (9 September 2021)
• ASEAN Economic Ministers – Dialogue Partners Consultations (14 - 15 September 2021)

 Click here for previous editions of the ASEAN for Business Bimonthly Bulletin

Cambodia exported 67,547.34 tonnes of chillies in the first seven months of 2021, an increase of nearly 50 per cent year-on-year, according to the General Directorate of Agriculture.

During the period, the Kingdom shipped 66,227.12 tonnes of fresh chilli to Thailand, up 46 per cent year-on-year, and 0.002 tonnes to the UAE, And 1,320.22 tonnes of dried chilli were sold to Thailand, up 10.02 per cent, 0.21 tonnes to Belgium and 0.01 tonnes to Canada.

The Battambang provincial Department of Agriculture official noted that chillies tend to be grown together with other vegetables on the same space, which makes it cumbersome to estimate the total cultivation area.

Most chilli plants are grown near bodies of water in the dry season, and they produce ripe fruit around two and a half months after sowing, according to the official. “Chillies are primarily grown in Battambang to meet demand for consumption in the province, and the little that is left over is exported.”

Cambodian exports of non-rice agricultural products in the first seven months of this year were valued at $2.37378 billion, according to the ministry.

Author: Hin Pisei

Source: The PhnomPenh Post

For full article, please read here

Original published date: 03 August 2021

Cambodia drastically downgraded its economic forecast for 2021 to 2.5 per cent from the 4.1 per cent projection announced at the beginning of the year, due to the deteriorating Covid-19 situation.

The Cambodian Prime Minister announced the revised prediction on August 1 at the launch of the vaccination campaign for the adolescent group aged 12-17, at the Peace Palace in Phnom Penh.

World Bank regional vice-president for East Asia and Pacific Victoria Kwakwa told The Post in mid-July that the Kingdom is working hard to keep SARS-CoV-2 variants at bay, much like other countries in the region.

The Prime Minister said agriculture would for the foreseeable future remain a key player in undergirding Cambodian exports and in maintaining the food security level needed to shore up economic growth.

Agricultural exports have grown beyond expectations, he said. And while milled-rice exports have recorded marginal contractions, paddy shipments to Vietnam and the UAE soared 200 per cent year-on-year, following a Ministry of Agriculture, Forestry and Fisheries report.

Meanwhile, cashew nut exports surged nearly 300 per cent to more than 800,000 tonnes, he said, adding that sales of cassava, mangoes, bananas and other crops have amounted to billions of US dollars.

Author: May Kunmakara

Photo credit: Heng Chivorn

Source: The PhnomPenh Post

For full article, please read here

Original published date: 03 August 2021

Industri Baterai Indonesia, an electric vehicle battery subsidiary of state-owned largest miners, has estimated that it would need $15.3 billion in total investment to develop an integrated electric vehicle battery, the company top executive said on Wednesday. 

Toto Nugroho, the president director of Industri Baterai Indonesia, said the investment would cover processes from the mining of the battery raw materials, smelting/ refining, battery chemicals manufacturing, battery cells manufacturing, all the way to the recycling of used batteries.

"We need an investment of $15 billion, which is a challenge in itself. There is a timeline of around 3-4 years," Toto said in a session discussing the environmentally friendly automotive industry at the 2021 Investor Daily Summit on Wednesday. 

According to a company's presentation, Industri Baterai Indonesia would need $160 million in investment to mine limonite and saprolite, metallic ores that rich in nickel, the main ingredient for lithium-ion batteries.

Next, the company would need to invest in smelting facilities, including rotary kiln electric furnace (RKEF) technology and another using high-pressure acid leaching (HPAL) technology, to process the ores. Industri Baterai Indonesia would need $1.3 billion in investment for each smelting facility. 

The battery precursor materials and cathode would need $1.8 billion and $3.8 billion in investment, respectively, while the production of the battery cell itself may need an upfront cost of $6.73 billion. For battery recycling, Industri Baterai Indonesia sought to put in $30 million upfront capital.

Source: JakartaGlobe

Original published date: 15 July, 2021

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Surya Utama Nuansa, one of Indonesia’s largest solar power developers, aims to increase its Southeast Asian portfolio by eleven-fold to a total capacity of 2 gigawatt peak, as more customers would soon realize the cost for transitioning to solar power has become more competitive compared to fossil fuel energy.

The company, also known by its trade name SUN Energy, now works and operates on projects in Indonesia, Taiwan, Vietnam, and Thailand with a total capacity of 180 megawatts peak (MWp). Solar power plants use MWp to describe their capacity under ideal conditions.

With the global trend to shift to renewable energy, SUN Energy COO Philip Lee said he is optimistic they can increase their Southeast Asian portfolio to 2 GWp by 2025, equivalent to 2.000 hectares of land used for solar panels.

The urgency to switch to renewable energy has increased globally in the last few years following the Paris Agreement, which Indonesia signed in 2016. Last year, the government set to have 23 percent energy coming from renewable sources by 2025.

Though Indonesia has made significant progress in switching to clean and renewable energy — with 11.5 percent of energy now coming from renewable sources — it is still halfway from its 2025 target.

Source: JakartaGlobe

Author: Grace Nadia Chandra, Kezia Kho

Original published date: 28 July, 2021

Read full article here

In the afternoon on Thursday, July 22nd, 2021, the Lao National Chamber of Commerce and Industry (LNCCI) in collaboration with VELA project, GIZ in Lao PDR launched the press conference announcing the opening of applications for the ASEAN Business Awards Laos 2021 (ABA Laos 2021) supported by BCEL, Sacombank Laos, Lao Telecom and Lao lottery under the chairmanship by Mr. Thanongsinh KANLAGNA, Vice President of Lao National Chamber of Commerce and Industry (LNCCI), co-chair by Mr. Savankhone RAMOUNTRY, President of Lao Journalist and Senior Representative from VELA project, GIZ in Lao PDR Mr. Santi INTHAVONG, which was attended by Strategic Partner: KPMG Laos Co., Ltd, VELA, GIZ in Lao PDR, Smart Technology Co., Ltd, Katalyst Partner
The ASEAN Business Awards (ABA) Laos 2021 aims to recognize the outstanding Lao businesses and use them as champions to spread the knowledge of doing business in the ASEAN Economic Community. It aims to inspire and rally Lao businesses to participate in the integration process and become key players in the ASEAN market. In the bandwagon of growth and prosperity of the ASEAN Economic Community the ABA Laos 2021 encourages strengthening competitiveness of Lao private sector in the AEC.
The Winners will qualify to represent Laos to apply for ASEAN Business Awards 2021 (ABA 2021). The announcement of the Winner ASEAN Business Awards 2021 (ABA 2020) will be held during organizing the ASEAN Business and Investment (ASEAN-BIS) and the 36th ASEAN Summit in Brunei.
The ABA LAO 2021 awards will have the following categories:

1. Lao Priority Integration Sectors Excellence Awards (The winner has 1 award under the 12 Business sectors): Agriculture / Agri-based, Energy, Fisheries, Food & Beverages, Handicraft, ICT, Infrastructure, Textiles, Tourism, Transport & Logistics, Wholesale / Retail, Wood-based

2. SME Excellence Awards (The winner has 1 award under the 5 awards sector): ∙ Growth, Employment, Innovation, Corporate Social, Responsibility (CSR), Digital Transformation

3. Special Awards (The winner have 1 award under the 8 awards sector): Friends of Laos, Young Entrepreneur, Women Entrepreneur, Family Business, Green Enterprise, Sustainable Social Enterprise, Start-up and IDE, Skill Development (New)

How to apply?
FILL OUT
Download the nomination form of your desired award category, fill out the fields, and include the necessary attachments https://lncci.la/aba2021/en/index.php

SUBMIT
Submit your nomination until September 30th, 2021 either electronically or in physical print to the following address:

Lao National Chamber of Commerce and Industry/ ABA Laos Secretariat
Tel: 856 20 5256 2729, +856 20 5953 5392 or +856 20 9444 3513.
Fax: 856 021 452 580
Email: abalaos@lncci.la

ANNOUNCEMENT
Winners and runners-up will be announced on October 27th, 2021.

The utilization of the food and beverage industries in Indonesia has reached 89 percent amid the pandemic, acting Director General of Agro-based Industry at the Ministry of Industry Putu Juli Ardika has informed.

Production at food and beverage factories is still on track, and demand is increasing both in the domestic as well as the foreign market, he noted.

This has helped boost Indonesia's foreign exchange reserves and proved that the nation's industry has the potential to compete in the global market, he said.

According to the Ministry of Industry, the food and beverage industry was one of the most significant sectors that helped national manufacturing exports to skyrocket in the first six months of 2021.

The total export value of the non-oil and gas processing industry from January to June, 2021 reached US$19.58 billion, an increase of 21.68 percent compared to the year-ago period.

The food and beverage industry attracted investment of Rp36.6 trillion -- Rp14.7 trillion in domestic investment (PMDN) and Rp21.9 trillion in foreign investment (PMA) -- in the first half of 2021 amid the pandemic, as per ministry data.

To support the performance of the food and beverage industry and help factories continue production, the Industry Ministry is determined to maintain the availability of raw materials, Ardika said.

The food and beverage industry is also a labor-intensive sector and is responsible for increasing the added value of domestic raw materials, he added.

Source: Antara News

Reporter: Risbiani F, Resinta S

Editor: Rahmad Nasution

Original published date: 31 July, 2021

Read full article here

Hyundai Motor Group said on Thursday it will partner with LG Energy Solution to build an electric vehicle battery factory in Indonesia to secure a stable supply of battery cells for its EVs.

The two South Korean companies signed a memorandum of understanding with the Indonesian government to establish a joint venture to manufacture battery cells.

Under the agreement, Hyundai and LG Energy will invest a total of $1.1 billion to build a battery cell plant in Karawang, just east of Jakarta, with both companies holding 50% ownership. The Indonesian government has agreed to offer incentives and rewards to support the plant.

Hyundai said construction of the Indonesian plant is scheduled to start in the fourth quarter and will be completed by the first half of 2023. Mass production of battery cells at the new facility is expected to commence in the first half of 2024.

The proposed Karawang plant is described by the companies as the "most optimal location" for each. Indonesia is one of the world's largest producers of nickel, a key raw material for EV batteries.

The Indonesian government has been aggressively fostering an EV industry ecosystem in hopes of playing a pivotal role in the global EV race -- including through the establishment of Indonesia Battery Corp. earlier this year.

The new battery cell factory in Karawang, close to the Indonesian capital of Jakarta, will be constructed on a 330,000-sq.-meter plot of land. When fully operational, it is expected to produce 10 GWh worth of lithium-ion battery cells annually, or enough for more than 150,000 EV batteries.

Source: Nikkei Asia

Author: Kim Jaewon

Original published date: 29 July, 2021

Read full article here

Six main types of e-commerce businesses are exempt from registration requirements at the Ministry of Commerce,

The industry is gaining massive popularity in the Kingdom as Covid reshapes consumers’ behaviours and drives a transition to online shopping, a trend that has prompted the government to explore avenues to strengthen management efficiency of the market.

The e-commerce businesses exempt from the registration requirements are – firstly, advertisers that do not list prices of, or directly sell goods to services to consumers, and are not subject to a contract; secondly, information providers involved in interactions such as negotiations that do not take deposits for their services or directly create sales contracts, such as booking services.

Thirdly are operations of individuals or sole proprietorships with revenue from the sale of goods or services below the lower income threshold of the lowest tax bracket; and fourthly are family-owned, temporary or seasonal businesses, such as those in agriculture.

Fifthly are vendors of paintings or other artworks; and sixthly are providers of online private tutoring, training, workshops or similar education services. Cambodian tech and digital businesses achieved $470 million in revenue for 2019, the Asian Development Bank reported in June.

Author: Hin Pisei

Source: The PhnomPenh Post

For full article, please read here. 

Original published date: 27 July 2021