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Indonesia Introduces New Cybersecurity Rules for Financial Sector
In a bid to address the growing threat of cyber attacks in Indonesia’s financial sector, the country’s Financial Services Authority (OJK) has introduced new cybersecurity rules. The rules, which came into effect on December 27, 2022, are aimed at ensuring the safety and security of business and customer data.
New Rules and Requirements
The OJK’s circular, titled Nomor 29/SEOJK.03/2022 (SEOJK 29), outlines the implementation of Regulation Number 11/POJK.03/2022 concerning the Implementation of Information Technology by Banks. The rules cover a range of areas, including:
- Risk assessments
- Risk management
- Data protection
- Incident response planning
- Employee capacity
Key Requirements
Under the new rules, financial institutions in Indonesia will be required to:
- Conduct regular risk assessments
- Implement robust risk management frameworks
- Develop incident response plans
- Submit annual reports on their cybersecurity practices to the OJK
Growing Threat of Cyber Attacks
The introduction of the new cybersecurity rules is part of Indonesia’s efforts to strengthen its cybersecurity laws. In 2021 alone, the country recorded at least 1.6 billion cyberattacks, according to its National Cyber and Crypto Agency (BSSN).
Benefits for Financial Institutions
Financial institutions in Indonesia have clear incentives to strengthen their cybersecurity practices in response to the new rules. The rules offer guidance and structure for entities to institute and monitor their cybersecurity capacity, and could be especially important for newer fintech firms and startups that do not have extensive cybersecurity infrastructure.
Conclusion
As the threat of cyber attacks continues to grow, financial institutions would do well to undertake an assessment of their cybersecurity practices and vulnerabilities. A successful assessment and resulting actions will not only ensure compliance but also meaningfully strengthen resilience against growing cyber threats.
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