Cybersecurity Threats to Finance in Indonesia Pose Significant Risks
Indonesia’s growing economy and expanding IT infrastructure have created a perfect storm for cyber threats, making it essential to address the risks posed by these threats.
The Growing Concern of Cyber Attacks
In the first quarter of 2022, Indonesia saw over 11 million cyber attacks, a 22% increase from the previous year. This significant rise in cyber attacks highlights the need for robust cybersecurity measures to protect against vulnerabilities.
The Challenges of Adequate Cybersecurity Protections
The lack of adequate cybersecurity protections has made it easy for hackers to exploit vulnerabilities. As Indonesia’s IoT connections continue to grow, so does the need for effective cybersecurity measures. However, a shortage of cybersecurity professionals is hindering the expansion of the Indonesian cybersecurity market.
Efforts to Combat Cybercrime
To combat cybercrime, the National Cyber and Encryption Agency (BSSN) has launched the Cyber Threat Intelligence Program (CTIP) in collaboration with a private technology company. This program aims to strengthen the security of Indonesia’s infrastructure against recent threats observed in its digital space.
New Cybersecurity Rules for the Financial Sector
Indonesia recently introduced new cybersecurity rules for the financial sector, including banks, insurance companies, and other financial services providers. These regulations were developed by the Financial Services Authority (OJK) and cover areas such as:
- Risk assessments
- Risk management
- Data protection
- Incident response planning
- Employee capacity
Strengthening Cybersecurity Laws
The Indonesian government has also been working to strengthen its cybersecurity laws, with the passage of its first data protection law in September 2022.
Preparations for the 2024 General Elections
Ahead of the 2024 General Elections, BSSN is preparing to mitigate cyber-attack risks, which are expected to rise. The agency anticipates the dissemination of hoaxes and fake news, attacks on data banks, and disruption of transmission channels. In anticipation, BSSN has implemented a four-stage security program to secure digital systems for several government institutions.
Projected Growth of the Indonesian Cybersecurity Market
The Indonesian cybersecurity market is projected to grow from US$ 2.05 billion in 2023 to US$ 3.39 billion by 2028. The market is segmented into three areas:
- Offering (security type and services)
- Cloud
- On-premises
- Deployment (cloud, on-premises)
- End-user (BFSI, healthcare, manufacturing, government & defense, IT and telecommunication)
Contact Information
For more information, please contact Commercial Specialist Ms. Yulie Tanuwidjaja at Yulie.Tanuwidjaja@trade.gov.