Financial Crime World

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Indonesia Unveils New Banking Security Regulations Amid Growing Cyber Threats

Indonesia has taken a significant step in strengthening its financial sector’s cybersecurity by releasing new rules for banks, insurance companies, and other financial services providers. The Financial Services Authority (OJK) issued Circular Number 29/SEOJK.03/2022, which outlines the implementation of Regulation Number 11/POJK.03/2022 on Information Technology in Banks.

New Regulations Aim to Address Growing Cyber Threats

The regulations aim to address the growing threat of cyber attacks in the financial sector and ensure the safety and security of business and customer data. The OJK has identified four key areas for assessment:

  • Inherent Risk: Financial institutions must conduct an annual inherent risk assessment to identify their level of cybersecurity risk without any mitigating controls in place.
  • Risk Management: Regulators will assess this risk based on factors such as technology, bank products, organizational characteristics, and cyber incident track record.
  • Cyber Resilience Processes: Entities must implement a framework that includes identification of assets, threats, and vulnerabilities; asset protection; cyber incident detection; and cyber incident response and recovery.
  • Cybersecurity Maturity Level Assessment: Financial institutions must also conduct regular cybersecurity testing and submit an annual assessment of their overall cybersecurity risk level to the OJK.

Growing Need for Strengthened Cybersecurity in Indonesia

The new regulations come amid a growing need for strengthened cybersecurity in Indonesia. The country has been hit by several high-profile cyber incidents in recent years, including the theft of SIM card numbers and a threat to sell correspondence between President Joko Widodo and his ministers.

Cyberattack Statistics in Indonesia

According to Indonesia’s National Cyber and Crypto Agency (BSSN), the country recorded at least 1.6 billion cyberattacks in 2021 alone. The introduction of new cybersecurity rules offers guidance and structure for financial institutions to institute and monitor their cybersecurity capacity, which is especially important for newer fintech firms and startups that may not have extensive cybersecurity infrastructure.

Conclusion

Financial entities are advised to undertake an assessment of their cybersecurity practices and vulnerabilities to ensure compliance with the new regulations and strengthen their resilience against growing cyber threats. By implementing these new regulations, Indonesia aims to protect its financial sector from the increasing threat of cyber attacks and maintain trust among consumers and investors.