Ministry of Finance

Republic of Indonesia

Cyber Security and Economic Development

Sudarto
Assistant of Minister of Finance for Organization, Bureaucracy, and Information Technology
(CIO of MoF)

IndoSec 2019
3-4 September | Jakarta, Indonesia

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Cyber Crimes on Films…

§ Live Free or Die Hard (released as Die Hard 4.0 outside North America)
is a 2007 American Die Hard film series. The film was starred Bruce
Willis as John McClane. The film was based on the 1997 article "A
Farewell to Arms" written for Wired magazine by John Carlin.
§ In the film, McClane attempts to stop cyber-terrorists who hack into
government and commercial computers across the United States with
the goal of starting a "fire sale”. It would disable key elements of the
nation's infrastructure (power grid-electricity, financial market, banking,
transportation, etc).
§ As chaos descends around him, McClane must use an analog-old-
fashioned methods to fight the high-tech threat.

….many more films on cyber crimes….

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 Why Cyber Security is essential for the economic development?
Rise of e-Commerce and E-services Smart Cities
§ E-commerce (e-retail alone) has grown at an estimated annual § We are increasingly experiencing the
rate of 14.3% reaching $509.9 billion in sales in 2018. Integration of digital technologies,
§ Additionally, this growth is also being experienced in many information, and applications for
The fact that communities, or what are known as smart
services including health, business, and personal services. The
digital resulting convenience to consumers and new business
communities or cities.
technologies and opportunities for industry is accompanied by increase cyber § The integration of digital technologies,
processes have threats. data, is happening across many different
community service areas including
increased rapidly Internet of Things (IoT) infrastructure (transportation, sewer,
to the point where § Industry 4.0 is the fourth wave of technological advancement in
water), public safety, health, planning, and
governance.
everything is manufacturing where multiple, if not all, parts of the manufacturing
connected. Nearly supply chain system are digitally interconnected including machines § This has the ability to make communities
used in production, monitoring and control systems, and logistics all more efficient, effective, and responsive
everything is or communicating with each other beyond a single enterprise but it also increases risk for cyber threats
can be digital and of all kinds and with serious potential
§ Since IoT devices become more integrated into our daily lives, it seems impacts. Recent high profile cyber
therefore inevitable that we begin to use and understand them, however, we breeches have occurred in San Diego,
everything could consistently failed to recognize their lack of basic security features. Atlanta, Baltimore, New York City, and
Houston.
be at risk. § A recent survey from Altman Vilandrie & Company showed nearly 50%
of US companies using an IoT network have experienced a security
Source:
breach. In addition, a survey of industry by PWC “flagged a wide range https://www.camoinassociates.com/recent-and-
of concerns around data security, with operational interruption from emerging-trends-cybersecurity-economic-and-
cybersecurity breaches at the top of their list. business-development

….so many more reasons…. 3

 Cyber Security incidents
Cyber Security
incidents are
increasing at an § The Center for Strategic and International Studies (CSIS), in partnership with McAfee, had
presented Economic Impact of Cybercrime – No Slowing Down, a global report that focuses on the
alarming pace
significant impact that cybercrime has on economies worldwide.
with potentially § The report concludes that close to $600 billion, nearly one percent of global GDP, is lost to
profound effect on cybercrime each year
daily
functioning of society
& economy,
both online and
offline. Yet, victims of
cyber-attacks are
reluctant to share
knowledge that could
prevent further
attacks, and to invest
sufficiently in cyber
security. Source: The Economic Impact of Cybercrime-No Slowing Down, CSIS 2018

…as well as financial theft, loss of intellectual property, data breaches, etc.
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The Global Risks Landscape 2019

Based on the annual Global Risks Perception Survey (GRPS), completed by 1000
members of the World Economic Forum’s global multi-stakeholder community.
Respondents are drawn from business, academia, civil society and the public.
Source: The Global Risks Report 2019, 14th Edition, published by the World Economic Forum.

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 Some strategies but never enough…
Some supporting analog measures:
Clearly, § Every country’s government should take measures to educate its citizens on
cybersecurity is cybersecurity awareness, in addition to aligning risk and information technology
the foundation for activities and regulating private and public enterprises for compliance.
securing the § All countries should be voluntarily and universally adhere to acceptable cyber norms
prosperity of the and international law in cyberspace.
economy. Hence, § Every institution should follow secure practices and produce secure products and
all possible services, in addition to educating their employees on safe and secure practices.
measures for § Enterprises, academia and industry associations must build and maintain skilled human
effective resources in cybersecurity.
cybersecurity
across the globe But it’s never enough:
must be the Cyber insecurity is a tax on growth. In a digital world, not taking national
responsible of cyber security seriously will come at a price. As the internet becomes increasingly
everyone. insecure and threats more persistent and harder to predict, sufficient levels of cyber
security become necessary to sustain economic growth.
(Melissa Hathaway)

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 Ministry of Finance
Republic of Indonesia

THANK YOU

IndoSec 2019
3-4 September | Jakarta, Indonesia