A Risky Digital World
Indonesia is currently in the midst of an extraordinary wave of digital transformation.
The growth of e-commerce, digital financial services, public applications, and cloud systems is increasing rapidly.
However, behind this progress, cyber threats are also increasing exponentially.
The 2024 National Cyber Security Index report ranks Indonesia 83rd out of 175 countries in cybersecurity readiness.
Meanwhile, the National Cyber and Crypto Agency (BSSN) recorded more than 400 million cyberattack attempts in 2023—an increase of nearly 40% compared to the previous year.
From ransomware attacks to personal data leaks, these threats have caused significant economic and reputational damage.
In this context, PT. Liberty and General Insurance Broker (L&G Insurance Broker) emphasizes the importance of professional cyber risk management with a comprehensive approach, including financial protection through Cyber Insurance.
Cyber Attack Trends in Indonesia
Cyberattacks in Indonesia are no longer uncommon. According to data from the National Cyber and Security Agency (BSSN) and various digital security sources, emerging trends over the past three years include:
- Ransomware dan Malware Attack
Ransomware attacks are the most frequently reported type of attack.
A major example: the case of Bank Syariah Indonesia (BSI) which attacked the core banking system and caused major operational losses.
In the industrial sector, many manufacturing companies have halted production due to malware entering through supplier networks.
- Data Breach (Personal Data Leakage)
Customer data from public agencies, marketplaces, and fintech companies has been leaked and sold on the dark web.
The 2024 National Data Center (PDN) leak case resulted in national reputational damage.
Personal data has now become a “new commodity” in the illegal market.
- Social Engineering and Phishing
Many victims in the financial sector are victims of fake emails (phishing) and psychological manipulation (social engineering).
The mode is increasingly sophisticated, imitating official communications from banks or trusted vendors.
- Supply Chain Attack
Attacks on third parties who have access to the company’s internal systems.
Example: an attack on an ERP software provider that impacted thousands of clients.
- Insider Threat
Threats from internal employees abusing access or selling sensitive data.
It happens a lot in the banking and public service sectors.
Financial and Economic Impact of Cyber Attacks
According to the IBM Cost of a Data Breach Report 2024, the average loss from a single data breach incident reaches USD 4.45 million (around IDR 72 billion).
In Indonesia, the risk may be higher due to several factors:
Security infrastructure is still weak.
- Many companies do not have a backup and recovery system.
- Compliance with the Personal Data Protection Act (PDP Act) is still low.
Some estimates of the financial impact:
| Attack Type | General Impact | Estimated Loss |
| Ransomware | Downtime, file loss, ransom, system recovery | Rp. 5–50 billion |
| Data Breach | Investigations, regulator fines, loss of customers | Rp. 10–100 billion |
| Phishing Fraud | Invalid fund transfer | Rp. 1–20 billion |
| Supply Chain Attack | Mass operational disruption | Rp. 5–80 billion |
Additionally, reputational damage and loss of customer trust can have much longer-lasting consequences — even leading to business bankruptcy.
Sectors Most Vulnerable to Cyber Attacks
L&G Insurance Broker identified the five sectors most vulnerable to cyber risks in Indonesia:
🏦Finance & Fintech – prime targets for customer data hacking and digital fraud.
🏥Healthcare – stores sensitive patient data and is vulnerable to ransomware.
🏭Manufacturing – relies on automation systems that can be attacked by malware.
🛒E-commerce & Retail – prone to customer data and payment system leaks.
🏛️Government Agencies – large data volumes, security still inadequate.
Companies in these sectors need a combination of strong IT security strategies, risk management, and insurance protection.
Key Challenges to Cyber Risk Management in Indonesia
⚠️1. Management Awareness is Still Low
Many directors and business owners still view cyber attacks as a technical issue, not a strategic one.
⚠️2. Digital Security Budget Limitations
Security budgets are often only 1–3% of the total IT budget, even though threats are increasing every year.
⚠️3. Dependence on External Vendors
Without strong internal audit and control systems, vendors can become entry points for attacks.
⚠️4. Lack of understanding of the PDP Law
Non-compliance can result in large fines and lawsuits.
⚠️5. Lack of Financial Protection
Most companies do not have Cyber Insurance, so they have to bear the entire cost of the loss themselves.
- The Role of Cyber Insurance in Facing Cyber Risks
Cyber Insurance is specifically designed to protect companies from the financial impact of digital attacks.
Its main coverage includes:
| Type of Protection | Description |
| Data Breach Liability | Compensation to third parties due to personal data leaks. |
| Business Interruption | Compensation for losses due to cessation of business operations. |
| Ransomware & Cyber Extortion | Negotiation costs and ransom payments (as per law). |
| Digital Asset Restoration | Recovery of damaged data, systems and software. |
| Reputational Management | The costs of crisis PR and public reputation restoration. |
| Regulatory Fines & Legal Costs | Fines and legal costs resulting from violations of the PDP Law. |
In other words, this insurance protects cash flow and business continuity when a cyber incident occurs.
The Vital Function of Insurance Brokers in Cyber Risk Management
In dealing with cyber risks, insurance brokers such as L&G Insurance Broker have a very strategic role:
- Risk Profiling: Identifying potential threats and exposure values.
- Policy Design: Developing wording that meets industry needs.
- Premium Negotiation & Policy Conditions: Get the best price from multiple insurers.
- Regulatory Compliance: Assisting clients in understanding and complying with the PDP Act.
- Claims Assistance: Handle the claims process quickly and effectively.
With cross-industry experience, L&G is able to tailor solutions for both local and multinational companies in Indonesia.
Case Study: The Real Impact of Cyber Attacks in Indonesia
💡Case 1: Bank Syariah Indonesia (2023)
The banking system was disrupted for days.
Customer data was leaked and sold on dark web forums.
Reputational losses and recovery costs reached billions of rupiah.
💡Case 2: PDN (2024)
The Brain Cipher ransomware attack crippled national public services.
Thousands of government data leaks, highlighting the weakness of national digital resilience.
💡Case 3: National Logistics Company
The tracking system is locked by ransomware.
Operational activities stopped for 3 days, losses of IDR 9.8 billion.
With broker support, Cyber Insurance claims are approved within 60 days.
📌Lesson: Without financial protection, recovery costs can disrupt business continuity.
The Strategic Role of PT. Liberty and General Insurance Broker (L&G)
As an OJK-licensed national broker, L&G Insurance Broker helps clients manage cyber risks with a comprehensive approach:
✅Digital Risk Analysis
System audits, vulnerability identification, and financial impact projections.
✅Cyber Insurance Program Design
Policies are designed based on industry-specific needs — not generic.
✅Negotiations with Global Insurers
Access to international markets such as Lloyd’s of London for large capacity.
✅Claims Assistance
Starting from incident reports to claim payment settlement.
✅Education and Workshops
L&G actively educates companies through cyber risk seminars and training.
With a track record across various sectors (energy, logistics, mining, manufacturing, and technology), L&G is a trusted partner in building the digital resilience of Indonesian companies.
Conclusion: It’s Time to Take Cyber Risk Seriously
Indonesia is entering the digital economy era — but without security preparedness and financial protection, cyber risks can halt business growth at any time.
Companies should view cyber insurance not as an additional expense, but rather an investment in protecting digital assets and reputation.
Through professional assistance from PT. Liberty and General Insurance Broker (L&G Insurance Broker), companies can:
- Understand the risks clearly,
- Have relevant protection,
- And ensure claims are paid when an incident actually occurs.
In the digital world, the best defense is not just technology, but also a well-thought-out risk management strategy — with the right broker.
🔐Does your company have protection against cyber risks?
Consult immediately with PT. Liberty and General Insurance Broker (L&G Insurance Broker).
HOTLINE L&G 24 JAM: 0811-8507-773 (PHONE – WHATSAPP – SMS)
Website: lngrisk.co.id
Email: halo@lngrisk.co.id
