Financial Crime World

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Indonesia Toughens Cybersecurity Rules for Financial Institutions Amid Growing Threats

Jakarta, Indonesia - In response to an increasing number of cyber attacks on banks and financial institutions in Indonesia, the country’s Financial Services Authority (OJK) has introduced new cybersecurity rules specifically designed for the financial sector. The rules aim to strengthen the safety and security of business and customer data by requiring financial institutions to assess, test, and potentially strengthen their cybersecurity practices.

Growing Threats in Indonesia

According to the OJK, the new rules are a critical step in addressing the growing threat of cyber attacks on Indonesia’s financial sector. In 2021 alone, the country recorded at least 1.6 billion cyberattacks, with notable cases including:

  • A hacker stealing SIM card numbers from over 1.3 billion customers
  • A perpetrator threatening to sell correspondence between President Joko Widodo and his ministers

Key Requirements of the New Cybersecurity Rules

The OJK’s new rules cover various areas, including:

Inherent Risk Assessment

  • Financial institutions must assess their inherent risk level on an annual basis using criteria such as:
    • Technology
    • Bank products
    • Organizational characteristics
    • Cyber incident track record

Implementation of Risk Management

  • Institutions must develop a risk management framework related to cybersecurity, which includes:
    • Governance
    • Risk management processes
    • Human resources
    • Internal controls

Cyber Resilience Processes

  • Financial institutions must implement cyber resilience processes that include:
    • Asset protection
    • Detection
    • Response
    • Recovery in the event of a cyber incident

Cybersecurity Testing Requirements

  • Institutions must conduct regular cybersecurity tests, including:
    • Vulnerability analysis
    • Scenario-based testing

Reporting Cybersecurity Incidents

  • Financial institutions must report any cybersecurity incidents to the OJK within 24 hours.

Growing Need for Cybersecurity in Indonesia

Indonesia has been strengthening its cybersecurity laws in recent years, with the passage of its first data protection law inspired by the EU’s GDPR framework. The country recognizes the importance of robust cybersecurity measures in protecting sensitive information and preventing cyber threats.

The new OJK rules provide a clear guidance and structure for financial institutions to strengthen their cybersecurity capacity. This is particularly important for newer fintech firms and startups that may not have extensive cybersecurity infrastructure.

Conclusion

In conclusion, Indonesia’s new cybersecurity rules for the financial sector are a significant step in addressing the growing threat of cyber attacks on banks and financial institutions. Financial entities must take these rules seriously and undertake an assessment of their cybersecurity practices and vulnerabilities to ensure compliance and strengthen resilience against cyber threats.