Financial Institutions in Indonesia Must Step Up Cybersecurity Measures as Government Issues New Regulations

The Indonesian government has issued a new regulation to strengthen the financial sector’s defenses against cyber threats and ensure the integrity of its operations. Bank Indonesia (BI) Regulation No. 2 of 2024 requires financial institutions, payment service organizers, and other relevant parties to implement robust information system security and cyber resilience measures.

Key Aspects of the New Regulation

The regulation consists of five fundamental aspects:

Governance

Financial institutions must establish a culture of cybersecurity awareness within their organizations by: + Preparing standards and procedures for ISSCR (Information System Security and Cyber Resilience) + Providing training and education to employees on cyber risk management

Prevention

Financial institutions must: + Identify vulnerabilities and threats through regular assessments + Protect data and systems from attacks + Detect and respond to incidents in a timely manner

Treatment of Cyber Incidents

Financial institutions must have plans in place for responding to incidents, including:

+ Activating incident response teams
+ Notifying stakeholders and BI (Bank Indonesia)
+ Conducting investigations
+ Mitigating the effects of the attack

Supervision

BI requires financial institutions to report on their ISSCR implementation and cyber incident response. Failure to comply with reporting requirements may result in administrative sanctions, including fines and suspension or revocation of licenses.

Importance of Cybersecurity in Indonesia’s Financial Sector

The issuance of this new regulation is a significant step forward for Indonesia’s financial sector, recognizing the importance of cybersecurity in maintaining trust and stability in the industry. As the country continues to develop its digital economy, it is essential that financial institutions prioritize cybersecurity and implement robust measures to protect themselves against cyber threats.

By implementing these measures, financial institutions can ensure the integrity of their operations and maintain the trust of their customers. The regulation demonstrates a commitment to strengthening the financial sector’s defenses against cyber threats and promoting a culture of cybersecurity awareness throughout Indonesia.