Indonesia Cybersecurity

The Indonesia Cybersecurity market is projected to grow from US$ 2.05 billion in 2023 to US$ 3.39 billion by 2028. Indonesia has seen more than 11 million cyber attacks in the first quarter of 2022 amounting to a 22% increase over the previous year.

Indonesia a growing economy with expanding IT infrastructure investment and rising smartphone and internet adoption. Indonesia is lacking adequate cybersecurity protections, which hackers exploit. As a result, the expanding number of IoT connections is increasing the need for cybersecurity measures. However, a lack of cybersecurity professionals has hampered the expansion of the Indonesian cybersecurity market. The Indonesian Cybersecurity market is segmented into three areas:  Offering (Security Type and Services), Deployment (Cloud, On-premises), and End User (BFSI, Healthcare, Manufacturing, Government & Defense, IT and Telecommunication). 

The National Cyber and Encryption Agency (BSSN) has launched the Cyber Threat Intelligence Program (CTIP) in cooperation with a private technology company to tackle cybercrime in Indonesia. The program aims to strengthen the security of the country’s infrastructure against recent threats observed in Indonesia’s digital space. Based on Presidential Regulation Number 28 of 2021, BSSN is carrying out duties in the field of encryption and cybersecurity, which include operations involving the identification, detection, protection, response, recovery, and monitoring of cybersecurity and national encryption, as well as national cyber crisis management.

Indonesia recently released new cybersecurity rules for the financial sector, including banks, insurance companies, and other financial services providers. The new rules developed by the Financial Services Authority (OJK) are Indonesia’s first dedicated cybersecurity rules specifically for the financial sector. OJK explained the rules in a circular titled No 29/SEOJK.03/2022 (SEOJK29) on December 27, 2022, concerning the Implementation of the Information Technology by Banks. The rules cover a range of areas, including risk assessments, risk management, data protection, incident response planning, and employee capacity. Strengthening Indonesia’s cybersecurity laws has been a priority for policymakers in recent years and as an example of the progress, Indonesia passed its first data protection law in September 2022, 

BSSN has started preparing to mitigate cyber-attack risks, which are expected to rise ahead of the 2024 General Elections. BSSN anticipates the dissemination of hoaxes and fake news, attacks on data banks, and disruption of transmission channels. In a reinvestigation of the 2014-2019 elections, it was found that there were at least three types of cyber threats that were consistently identified during the electoral process. There were social cyberattacks, technical cyberattacks on data banks, applications, and digital network systems. And lastly, disruption to transmission channels such as radio signals and frequency. In anticipation, BSSN is implementing a four-stage security program, to be carried out from January 2023 until the end of 2024. The four stages include planning, preparation, implementation, and termination of digital systems security measures for several government institutions. 

For more information, please kindly contact: Commercial Specialist Ms. Yulie Tanuwidjaja at Yulie.Tanuwidjaja@trade.gov.