The past decade has witnessed tremendous digital development in Indonesia as businesses and consumers migrate to the digital world. The growing reliance on internet-based technologies and communications has reshaped the digital ecosystem and brought about unprecedented opportunities and convenience. However, the continuous development and adoption of digital technologies, if not fortified with effective cybersecurity practices, may pose potential risks and vulnerabilities that can be exploited by cybercriminals. Cybersecurity risks are becoming increasingly systematic and severe in Indonesia, endangering not only government institutions and businesses but also individuals. In 2022, Indonesia recorded close to one billion
, calling for prompt actions to protect digital assets.
Digital opportunities and potential calamities
Indonesia’s digital economy has seen exponential growth in recent years and is the
largest among its peers in the Southeast Asia region. The country has made enormous strides in digitalization by nurturing and capitalizing on local capabilities, resulting in the establishment of multi-billion-dollar tech giant Go-To, as well as numerous home-grown tech startups. This has made Indonesia an even more attractive investment destination for global technology companies, which further spurs Indonesia’s digital economy growth. However, these digital opportunities have also been the source of potential digital calamities in Indonesia. They expose the country to greater risks and give rise to vulnerabilities due to inadequate cybersecurity protection measures. To date, Indonesia is highly prone to data breaches and
phishing attacks. A total of approximately 15 million
online data breaches were recorded throughout 2022, intensifying concerns regarding data privacy violations and data protection laws in the country.
The lack of cybersecurity professionals and insufficient awareness about cyber threats have contributed to Indonesia’s inability to meet certain cybersecurity standards, leaving the country vulnerable to attacks. The country still struggles to prevent and manage cyber threats and cyber incidents, scoring just 63.64 on the
National Cyber Security Index (NCSI). This is also reflected in the relatively low revenues of
the Indonesian cybersecurity market, which currently ranks sixth among Asia-Pacific countries.
Companies’ readiness for cyber resilience
The COVID-19 pandemic also played a significant role in accelerating digitalization in Indonesia, especially among companies. Besides encouraging companies to establish an online presence, the health crisis also introduced the concept of working from home. This has, in turn, resulted in the growing popularity of hybrid workplace models and distributed workforces post-pandemic. For companies, cybersecurity concerns are now not only limited to safeguarding assets. They also need to securely connect multiple devices in separate locations from different networks within the organization, which can increase potential risks if not done properly. With the adoption of the new hybrid workplace model and other technology advancements, companies are compelled to be more vigilant against new and rapidly evolving cyber threats. Proper implementation of cybersecurity solutions is required to achieve cyber resilience to protect their assets. However, Indonesian companies still have a long way to go to achieve cyber resilience, as only 39 percent of them are currently at the mature stage in terms of
overall cybersecurity readiness.
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