TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Rise of digital banks underscores urgency of data protection law
Established banks have pledged to maintain strong digital security systems and encouraged consumers to take precautions against cyberthreats, but the passage of the stalled bill is deemed crucial, as personal information is increasingly shared in the industry.
Change Size
Illustration of financial technology (fintech) (Shutterstock/File)
E
stablished banks have pledged to maintain strong digital security systems and encouraged consumers to take precautions against the risk of security breaches, but the passage of the stalled data protection bill is deemed crucial, as personal information is increasingly shared in the industry.
Pratama Persadha, chairman of the Communication and Information System Security Research Center (CISSReC), said digital banks had to increase their vigilance and implement adequate mitigation systems to protect customers against online crimes.
Ratification of the data protection bill, he added, remained critical to ensure consumers’ data protection because it would enable consumers to hold financial institutions as the electronic transaction system operators accountable.
Indonesia has no regulation in place that authorizes law enforcement to bring criminal charges against perpetrators of data breaches, theft or misuse. The 2008 Electronic Information and Transactions (ITE) Law only allows cyberattack victims to file for compensation for a breach of their personal data.
“Asking for accountability to ensure customer data protection is very difficult,” he told The Jakarta Post on Oct. 14. Consumers in the financial services sector were particularly vulnerable to cyberattacks, he added, citing a 2020 report from market research firm Research Dive.
A survey published in September by consultancy firm McKinsey & Company found that the share of consumers in the Asia Pacific region actively using digital banking had increased sharply over the last five years, rising from 54 percent in 2017 to 88 percent in 2021. The survey covers eight emerging markets of the region, including mainland China, India and Indonesia.
The Financial Services Authority (OJK) was pushing the House of Representatives to conclude its deliberation of the data protection bill, OJK chairman Wimboh Santoso said during the Indonesia Fintech Summit on Nov. 11 of last year.
