China's eyes on Indonesian cyber security a 'concern', experts warn

Indonesia is one of the most vulnerable countries in the world to cybercrime, according to a new research paper by the National Security College and the Australian Strategic Policy Institute, and it's looking to China as its partner of choice to plug the technology and training gap.

The emerging south-east Asian economy faces a major skills shortage within the information and communications technology sector despite relying on it to boost its growth.

Chinese tech firms, like communications giant Huawei, have already heavily invested in training centres, scholarships and workshops and offered career pathways for Indonesian graduates.

In 2020, Huawei offered to deliver technology and cyber skills training for up to 100,000 Indonesians, and have also extended similar programs to government officials.

Dr Dirk van der Kley, the paper's co-author and a global governance expert from the Australian National University, said it was an area of strategic importance that Australia was falling behind on.

He said it was in the interest of Australia and other Quad countries, such as India, Japan and the United States, to boost technology training in the short-term in Indonesia so it becomes less reliant on Chinese infrastructure.

"This is not only because [Huawei] provide the hardware but also enormous training at all levels of society from government officials down to rural students," Dr van der Kley said.

"This is steering Indonesia's current and future tech leaders towards Chinese technology.

"Indonesia holds deep animosity toward China, yet there has been almost no complaints about China's dominant position in telecommunications and cyber.

"This is because rich liberal democracies are not delivering the kind of benefits that Indonesia needs or wants."

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Gatra Priyandita, paper co-author and ASPI researcher, said Indonesian companies with poor data security saw Chinese cyber firms as a quick fix.

Vocational technology training was something Indonesia had wanted more advanced overseas sectors to offer for decades, he added.

"Regardless of China's active ICT agenda in the region, serious short-term vocational training in Indonesia is the right thing to do," Mr Priyandita said.

"So, Australia, and the Quad countries, should do it regardless of their goal of counteracting China's influence.

"Partnering on digital skills and capacity building in Indonesia would be a win-win for all."

Prime Minister Anthony Albanese visited the booming archipelago nation last month, meeting its leader President Joko Widodo in the eastern port city of Makassar.

Mr Albanese said boosting ties with the Asian nation was critical, with Indonesia expected to soon rank among the world's top five economies.

"It is clearly in Australia's interest to boost that investment," he said in June.

"Australia in terms of Indonesia as a trading partner is 13th on our list. It should be much higher."