Cybersecurity Threats Loom Large over Indonesia’s Finance Sector, Experts Warn

Indonesia’s finance sector is facing a significant threat from cyberattacks, with weak security systems making vital company data vulnerable to hacking. A recent breach at a financial services institution has highlighted the urgent need for robust cybersecurity measures.

The State of Cybersecurity in Indonesia

According to the 2022 National Cyber Security Index (NCSI) data, Indonesia’s cybersecurity index score stands at a dismal 38.96 points, ranking third lowest among G-20 countries. Data breaches not only harm consumers and customers but also pose a significant risk to a company’s reputation.

The Consequences of Data Breaches

“Hackers are no longer motivated by fame, but by financial gain and causing losses to companies,” said Reza Aminy, Associate Director of BDO’s Advisory Services team in Indonesia. “In the past, we saw hacking incidents targeting companies in banking, e-commerce, marketplace, telecommunications, insurance, and financial services sectors in Indonesia. These breaches can not only damage a company’s image but also trigger internal financial shocks.”

The Importance of Proactive Cybersecurity Measures

Experts emphasize that company leaders must be vigilant and responsive to potential cybercrimes, taking proactive steps to mitigate risks.

Why Companies Should Invest in Cybersecurity

“Many companies hesitate to invest in cybersecurity, waiting for an incident to occur before prioritizing information security,” said Reza Aminy. “However, companies that invest in cybersecurity face lower risks of incidents, and if they do occur, the impact is smaller compared to non-investing companies.”

The Challenges of Building an Internal Cybersecurity Team

Companies often struggle with whether to form an internal cybersecurity team or enlist the services of a cybersecurity management company. However, experts suggest that while internal teams are possible, they require significant time, money, and experience in handling various industry-specific cases.

The Collective Responsibility of Cybersecurity

Experts also stress that maintaining cybersecurity is a collective responsibility for the entire company organization, not just the IT team. Employees should be educated and vigilant against potential cyber-attacks, with phishing being one of the most common methods used by hackers.

Educating Employees on Cybersecurity

“Companies can provide cybersecurity training to make employees more alert to hacker attacks,” added Arina Marldiyah, Managing Director of the Human Capital & Training Division of BDO Indonesia.

Prioritizing Cybersecurity in Budget Planning

In light of these threats, companies are advised to prioritize cybersecurity and allocate necessary resources to protect their data. As Reza Aminy emphasized, “Cybersecurity is a long-term investment that requires a proactive approach.”

Conclusion

The finance sector in Indonesia faces significant cyber threats, and companies must take immediate action to mitigate risks. By investing in cybersecurity, educating employees, and prioritizing budget planning, companies can protect their data and reputation from potential attacks.