Cybersecurity Risk Management and Entrepreneurship for Indonesia’s Digital Transformation

Abstract

Indonesia’s rapid digital transformation driven by cloud adoption, AI integration, IoT proliferation, and a growing digital economy has significantly reshaped its cybersecurity landscape. Small and medium enterprises (SMEs), which contribute over 61% to Indonesia’s GDP, have become primary targets of increasingly complex cyber threats. In 2024 alone, the country recorded over 361 million cyber anomalies, ranking it among the top five most attacked nations globally. This paper explores how cybersecurity entrepreneurship and risk management intersect to address Indonesia's emerging challenges, including AI-powered attacks, IoT vulnerabilities, regulatory complexities, and future quantum threats. Drawing on national strategies such as the Indonesia Advanced Cybersecurity Implementation Framework (IACIF), the study identifies SME-specific vulnerabilities and examines innovation models such as Zero Trust Architecture and adaptive cybersecurity governance. The role of startups, digital policy, and collaborative ecosystems are also analyzed to promote national cyber resilience. The paper concludes by offering strategic recommendations tailored to Indonesian SMEs, entrepreneurs, and policymakers to strengthen security posture and foster sustainable innovation in the era of digital disruption.