Indonesia won't pay $8 mln ransom after cyberattack compromises national data center

Indonesia is grappling with a severe cyberattack that has crippled its national data center, affecting over 200 government agencies. The hacking group responsible is demanding an $8 million ransom, which the government staunchly refuses to pay.

The cyberattack, initiated last Thursday, disrupted critical services nationwide, including investment licensing and administrative functions. While some services, like immigration at airports, have been restored, efforts to recover others are ongoing, according to Samuel Abrijani Pangerapan, Director General of Informatics Applications at the Communications and Informatics Ministry.

Why This Matters: PT Telkom Indonesia's director of network & IT solutions, Herlan Wijanarko, revealed that the attackers encrypted data and offered a decryption key in exchange for the ransom. Collaborating with domestic and international authorities, efforts are focused on decrypting the data and restoring services.

Minister of Communication and Informatics Budi Arie Setiadi affirmed the government's stance against paying ransom, emphasizing ongoing recovery efforts and forensic investigations by the National Cyber and Crypto Agency (BSSN).

Hinsa Siburian, head of BSSN, identified the ransomware as LockBit 3.0, underscoring the severity of the attack. Pratama Persadha, Chairman of Indonesia’s Cybersecurity Research Institute, described it as the most devastating in a series of ransomware incidents since 2017, highlighting vulnerabilities in Indonesia's cyber infrastructure.

Persadha suggested that robust backup systems could mitigate such attacks, stressing the need for better management of cyber infrastructure and server systems.

Previously, Indonesia's central bank and the health ministry's COVID-19 app were targeted in separate cyber incidents, impacting public services and compromising sensitive data.

In 2023, Dark Tracer reported that LockBit ransomware had stolen substantial data from Bank Syariah Indonesia, demonstrating persistent cybersecurity challenges faced by Indonesian institutions.

As Indonesia works to recover from this cyber crisis, cybersecurity experts emphasize the urgent need for enhanced defenses and proactive measures to safeguard against future threats.

Key Takeaways:

• Indonesia's national data center hit by severe cyberattack affecting 200+ agencies.
• Hackers demand $8 million ransom, encrypting crucial government data.
• Government refuses to pay ransom, focusing on recovery and forensic investigations.
• Attack identified as LockBit 3.0, highlighting cybersecurity vulnerabilities.
• Previous cyber incidents underscore ongoing challenges in securing Indonesia's digital infrastructure.