IA-CEPA cyber opportunities with Prerana Mehta from AustCyber and AIBC
Prerana Mehta is the Chief of Ecosystem Development for AustCyber and the chair of the ACT Australia-Indonesia Business Council (AIBC). AIC Communications and Outreach Lead Helen Brown spoke with her over Zoom about cybersecurity and the new Indonesia-Australia Comprehensive Economic Trade Agreement (IA-CEPA).
Helen Brown: Thanks for your time, Prerana. I know that AustCyber has been particularly busy with Indonesia, or its counterparts in Indonesia, over the last 12 to 18 months. Why has the Australian cyber tech industry taken such an interest in Indonesia?
Prerana Mehta: Well, for two reasons. I guess Australia and Indonesia have always had strong national security relationships in place, even before the IA-CEPA, and certainly with IA-CEPA that’s been accelerated to some degree.
The second point is the IA-CEPA provides a whole heap of opportunities, not just for small businesses in Indonesia that are looking at increasing cyber security resilience and looking to learn from Australian companies, but also in terms of skills and education and training.
So the IA-CEPA has announced a skills package that actually allows Australian suppliers to own a majority, I guess, of investment in their work training centre [in Indonesia]. But it’s also reciprocated, so Australia can actually send people to teach and up-skill in Indonesian companies and vice versa: Indonesian companies can send their staff and their employees and their teams across to Australia to up-skill.
This project is fantastic because it’s across a number of sectors, engineering and technical services is one of those sectors and that’s where cybersecurity fits in. But cyber also fits within the financial and insurance services sectors, as well as mining, media and telecommunications. And they’re all areas that this [skills and training] program is starting to be applied in.
Helen Brown: It would probably seem obvious to an Australian what they have to offer to Indonesia in the cyber tech, cyber security space, but there’s probably less understanding about what Indonesia can offer Australia. Why would an Australian industry be looking at what’s happening in Indonesia, particularly in your field?
Prerana Mehta: That’s a really good question. Certainly Australia has a strong capability and strength in cyber security, whether it’s in education, skills and training, or in actual cyber security software, hardware and technical elements. But the one thing that Indonesia has is that they’re masters of their commerce and trade and that’s an area that I think we can actually learn. Innovation is just taking off in Indonesia at the moment. I think 10 years ago, BCA, the leading bank in Indonesia, had things like digital remote access to their accounts down pat and Australian banks are still catching up, so I think there is always something that we can learn.
The other thing that Indonesia provides is a stepping stone into the rest of the region. I think that gateway is a perfect opportunity for Australian cyber companies to be able to learn, experience and then use the fact that Indonesia is really the largest economy in the ASEAN market to be able to then reach out to other countries.
Helen Brown: And looking at the skills development side of things, would you be keen to see more women entering this field and learning about it and progressing in it? Do you think that would be part of that skills reciprocity, so to speak?
Prerana Mehta: Yeah, absolutely. I think it goes without saying that if we can always be encouraging women to be involved in STEM, STEM education, careers in engineering and careers in cyber security, we would absolutely be looking to do whatever we can to allow that to happen.
Again, the advent of eCommerce and trade in Indonesia has opened up a whole level of opportunity for young women. I still think about the meeting that I was at last year with a group of women and men who are all very, very young it seemed, or at least a lot younger than me, who are heading up I guess the information services and technology industry group in Jakarta. Around that table sat about four women and two men and they were enthusiastic, they absolutely knew their stuff and they were all working with really innovative organisations. These women were in senior positions with Buka Lapak, Tokopedia, Gojek, and I was absolutely blown away and I want to see a lot more of that.
Helen Brown: Of course, regulation is a very big part of having strong data protection in a country… of having the framework for cybersecurity to operate in a way that is trusted. Firstly, tell us what you see happening in Indonesia around that.
Prerana Mehta: Look, there’s been a lot of work being done in this area last year or it could’ve been early this year actually. The Australia-Indonesia Business Council met with the Secretary for the Department of Trade and they were actually coming to Australia to learn what Australia was doing in the space of their commerce and digital trade.
And I think what we were looking at was what regulation needs to be in place in Indonesia to protect consumers, also to be able to protect the small businesses that are operating on eCommerce platforms and importantly, how do we actually protect the data that’s being transmitted from point A to point B. And when we talk about cyber security, we’re of course talking about the Internet of Things, that anything that is digitised automatically becomes open, automatically becomes available for other people to be able to come in and get that information.
So how do we protect that? How do we set up all of those barriers and how can we do it in a way that’s easy? And I think that’s the one thing that Indonesia has been putting their minds to. So there’s been a lot of change. I know that some of the new regulation was already put into place late last year, and they’re constantly making improvements to that. So that at the end of the day, the small business operator working in a province in Indonesia will be able to sell their goods on an eCommerce platform and know that they’re being protected and know that the data and the money that’s being transferred digitally is being protected very well.
Helen Brown: And from the Australian side, AustCyber recently put out a report called Trust on Digital. That also outlined, I guess, some of the challenges faced here in Australia, even though we are more developed in terms of the infrastructure that is available.
Prerana Mehta: Yeah, actually absolutely, and I’m going to pull out some stats in a minute, which allows you to compare how important eCommerce and digital trust is. So in Australia, digital infrastructure is core really to Australia’s economy and we’ve seen that with COVID.
We did a little bit of modeling around a cyber attack and what the impact would be on the economy and what we found was that the digital economy in Australia contributes about $426 billion, and generates about $1 trillion in gross economic output. When you convert that to jobs, that means that one in six jobs is connected to some form of digital activity. That seems like a lot, but when we compare it to Indonesia, it’s actually quite tiny. Indonesians spend about $20 billion online, and that’s increasing. So they’re actually increasing by 25 to 30 per cent across the board in the amount that they’re spending online, which is still quite small, but it’s more actually the amount of people that are accessing online information, including doing their shopping online as well.
And when I say shopping online, I mean, grocery shopping, not just your favourite outfit, so that’s changing quite a lot and what that really means is that we need to build trust. So whether that’s in Australia or whether that’s in Indonesia, we actually need to make sure that the quality of digitisation and trustworthiness is able to stand on its own two feet.
Prerana Mehta recently joined an AIC panel discussion on women in STEM.