Cyber Threats Rise Amid Global Economic Uncertainty, Indonesia Becomes Target

Global economic uncertainty, resulting from trade wars, tariff policies, and inflationary pressures, is impacting more than just the business and investment sectors. Alongside these economic fluctuations, cyber threats are increasing, presenting a serious challenge to various industries, including finance, energy, telecommunications, and government agencies.

This phenomenon is not unprecedented; a similar pattern emerged during the US-China trade conflict in 2018, when state-sponsored cyber activities saw a significant rise. This situation is now recurring on a larger scale as economic tensions escalate globally. Interestingly, as many companies choose to freeze or cut Information Technology (IT) budgets, cybercriminals are exploiting these vulnerabilities to find new entry points. Reduced investment in digital security creates greater opportunities for cyberattacks to penetrate organisational defences.

Globally, the growth of cybersecurity budgets in 2025 is projected to reach only about 4 per cent, a decline from the 8 per cent growth seen in the previous year. This slowdown is driven by economic pressure, inflation, and uncertainty in international trade policies. Nevertheless, the global cybersecurity market continues to show a positive trend, with Gartner projecting total global information security spending to reach USD 213 billion by 2025. This indicates that the need for digital protection remains high. Companies with mature cybersecurity strategies continue to invest, while organisations that treat digital security as a secondary priority risk losing competitiveness and facing increasingly complex threats.

Another emerging trend is the rise of ‘onshoring’—the use of cybersecurity services from local providers. Concerns regarding cross-border supply chains and data sovereignty issues are driving many organisations to choose solutions that align more closely with domestic regulatory requirements. In the Asia-Pacific region, local cybersecurity providers are gaining greater market share, as they are perceived to better understand the compliance, data protection, and threat landscape specific to each country. In Indonesia, this trend presents significant opportunities for local cybersecurity firms, such as ITSEC Asia, which focuses on providing digital security solutions tailored to national market needs.

Cyber threats in Indonesia have reached a critical level. Recent data from the National Cyber and Crypto Agency (BSSN) recorded over 5.16 billion traffic anomalies between January and November 2025. This figure is equivalent to nearly 182 attack attempts every second, demonstrating that cyberattacks are continuous and target various strategic sectors in Indonesia. Currently, Indonesia ranks 12th in the Asia-Pacific region for cyber activity levels, with the finance, energy, telecommunications, and government sectors being primary targets.

Slamet Aji Pamungkas, Deputy for Cybersecurity and Crypto Economy at BSSN, emphasised that cyber threats have evolved into a strategic issue that can affect the operational continuity of organisations. He noted that the high intensity of attacks serves as a reminder that cybersecurity is no longer merely the responsibility of IT teams but must be a primary concern for corporate and institutional leadership. BSSN data shows that 93.78 per cent of detected traffic anomalies in 2025 originated from malware activity. Simultaneously, the advancement of Artificial Intelligence (AI) is being utilised by cybercriminals to increase attack effectiveness. AI is now used to create more convincing social engineering and phishing scenarios, accelerate credential theft, and facilitate large-scale digital identity theft, making attacks increasingly difficult to detect.

Throughout 2025, numerous cyber threats targeted important Indonesian institutions, ranging from ministries and law enforcement agencies to retail stock trading platforms, proving that no sector is immune. Furthermore, the implementation of the Personal Data Protection Law (UU PDP) and the inclusion of the Cybersecurity and Resilience Bill (RUU KKS) into the 2026 National Legislative Program are strengthening the demand for organisations to improve their security posture. Patrick Dannacher, President Director of ITSEC Asia, noted that global economic pressure does not reduce cybercrime activity; instead, it creates opportunities for threat actors when companies reduce digital defence investments. He added that Indonesia is at a pivotal moment in its national digital transformation, and therefore, digital economic growth must be balanced with a strong cybersecurity foundation to maintain investor and public trust in Indonesia’s digital ecosystem.