Digital Transformation, Financial Industry Asked To Strengthen Risk Management And Consumer Protection

Illustration of digital transactions (photo: Unsplash)

JAKARTA - After the COVID-19 pandemic, digital transformation in all sectors, especially the financial sector, is increasingly massive. To maximize this, the Financial Services Authority (OJK) encourages industry players to take advantage of the large number of internet users in Indonesia.

As for 2022, the number of internet users in Indonesia will reach 210 million or about 76.4 percent of the total population of Indonesia.

"Digital transformation encourages changes in our consumption patterns to be increasingly digital-minded and become a game-changer in providing financial products and services to the community, especially MSMEs that are still unbankable," said Deputy Commissioner for Supervision of Financing Institutions and Other Financial Services Institutions OJK Bambang W. Budiawan in a written statement, quoted Wednesday, April 12.

Bambang said that digital financial innovation carried out by the financial services sector also supports increasing financial inclusion, expanding access to finance, and deepening financial markets.

Financial innovation in the digital sector includes digital banking, digital-based loans (peer to peer lending), as well as fund-raising services for digital-based financing through crowdfunding securities and other digital financial innovations.

"In order to accommodate the innovation, OJK is concerned about mitigating risks, especially risks related to digital, such as cyber risks and consumer protection," he said.

"This is to encourage the financial services sector to have an innovative and safe business model, have the ability to manage prudent and sustainable businesses, and implement an effective risk management framework," added Bambang.

He explained that there are five obligations of financial services industry players in implementing information technology risk management. First, requiring certain competencies that must be possessed by Second Line of Defense, IT Auditor, Quality Assurance, to Risk Manager.

"Second, the assessment of the lack of IT risk is carried out regularly and comprehensively. Third, in order to increase independence, the assessment is carried out by third parties with a risk-based approach," he said.

For the fourth, continued Bambang, there is a regular implementation of the vulnerable assessment and recovery exercise. "Fifth, it has data centers and data recovery centers in Indonesia, and finally, it is mandatory to prepare a plan to use IT before it is implemented," he said.

Meanwhile, Telkomsigma Vice President Cybersecurity, Dedi Haryadi, said that to maximize the effectiveness of security in the digital space, it could be done by implementing the Quad Helix.

Based on the national resilience strategy sourced from BSSN, said Dedi, it is stated that there are two threats that will occur, namely social threats that will attack the community and community.

"Then, technical threats that target Indonesia's vital infrastructure, such as applications, software and others. The responsibility is all called quad helix," he said.

Quad helix is a collaboration or collaboration that connects academics, governments, business people, and the community, whose goal is to maintain Indonesia's digital transformation to an increase of 4.0 and increase the effectiveness of collaboration.

"We at Telkomsigma continue to develop several things related to our collaboration with several existing sectors and segments. First, the CSIRT collaboration. Second, developing management operation technology, as well as collaborating with academics for talent search, and finally research or awareness in the community and society," he said.

As for its implementation, cybersecurity includes tools, policies, and security concepts that can be used to protect organizational assets, data, and users.