Dear reader,

What do you know, this edition of Nusantara Notes came out on time, after all.

That’s really swell because there’s a lot to hack into today, including a story on the latest major cyberattack on Indonesia, an update on PKS, and a lingering economic impact from COVID-19.

Until tomorrow!

Cheers,

Andra

Law/Politics

Won’t be Held to Ransomware

It can be said that Indonesia’s cyber security is anything but impenetrable — a new report has emerged that it was hackers who compromised the National Data Center (PDN), causing disruptions to numerous government services last week including immigration.

According to the Ministry of Communications and Information, the cyberattack disrupted some 200 government services on the national and regional levels. The hackers held PDN data hostage and offered an access key in exchange for US$8 million.

The government says it won’t pay the ransom, but stresses that all affected public services are gradually being restored.

Though this cyber attack was especially huge in scale and impact, it doesn’t feel as alarming as it should be given how often this country has been hit.

Also recently, the military’s strategic intelligence data was allegedly hacked, with an investigation now ongoing. Other major cases in the last few years include the 2021 hacking of the government’s COVID-19 app, which exposed the private data and health history of 1.3 million Indonesians, as well as a ransomware attack on the central bank in 2022.

We can all get behind not paying the ransom, but is anything being invested into strengthening the country’s cyber security?

In Other News

• The Prosperous Justice Party (PKS) bluffed and failed to get it all their way. Just a day after the Islamic party nominated their own cadre Sohibul Iman to run for Jakarta governor, PKS has pulled an about-face and today nominated Anies Baswedan instead, with Sohibul as their preferred running mate for him. PKS previously required Anies to join their ranks if he wanted to secure their endorsement but likely conceded that the former Jakarta governor’s holds most of the bargaining power as he remains favorite to win in November.

• Musician Virgoun, who was last week arrested on alleged meth consumption, has been ordered to three months of drug rehabilitation. During a press conference today, Virgoun opened up about his past struggles with narcotics, but stressed that he had just began using again since he last used the stuff in 2012. He claims that he took meth to aid him in his weight loss journey.

• An 18-year-old boy was tragically killed in Losari Beach, Makassar, South Sulawesi after he climbed on a concrete letter from a sign, before it fell and crushed him underneath. The incident has sparked concerns over the safety and maintenance of public structures in the area.

Business/Economy

• Indonesia’s banks are still grappling with a significant amount of restructured loans related to COVID-19, with an outstanding total of IDR 207.4 trillion as of June 2024. President Joko Widodo has proposed extending the credit restructuring policy, which ended in March 2024, until 2025. This move aims to manage the high volume of non-performing loans (NPLs) and help banks avoid substantial losses.

• President Jokowi today convened a meeting with his ministers to address the crisis facing Indonesia’s textile industry. The sector, which has been hit hard by various challenges, including low demand, may require urgent intervention to prevent further economic fallout. Some 13,800 textile industry workers have reportedly been laid off so far this year.

• French miner Eramet and Germany’s BASF have canceled their US$2.6 billion investment plan for a nickel-cobalt refining complex in Weda Bay, North Maluku. The decision was made after thorough evaluation and discussions regarding the project’s execution strategy, with both companies deciding not to proceed without providing detailed reasons for the cancellation.

Everything Else

• The official theme for this year’s Independence Day is transition, as the government yesterday launched the slogan “Nusantara Baru Indonesia Maju” (roughly translated: a new Nusantara for a forward-moving Indonesia), which clearly alludes to the new capital city (and not these notes, sadly). The logo for Indonesia’s 79th anniversary feature wavy lines, which are meant to represent the meandering rivers of Kalimantan, which is home to the country’s new capital city.

• SEA Games and IAAF World U20 Championship gold medalist Lalu Zohri has booked his spot at the 2024 Olympics in Paris by virtue of securing a universality place. The sprinter is the 27th Indonesian athlete confirmed for the games, with the country’s badminton team smashing it in particular by sending nine athletes to Paris.