Indonesia’s cyberattack, Switzerland’s CBDC, and Brunei’s Smart Nation ambitions

Edition #81 This week, the Philippines officially launched its national digital ID, while Indonesia experienced a cybersecurity attack which paralyzed its government services...

In our previous roundup, we focused on the spread of digital identity projects across Europe and Asia, from Vietnam’s electronic ID systems to Kyiv’s new technology center, also covering Indonesia’s new universal digital platform and Poland’s public collaboration efforts.

This week, our main stories are delivering a reminder of the challenges in the digital government space, from a cyberattack on Indonesia’s national data center to a case study on some of Brunei’s obstacles to becoming a digital nation.

Our main stories this week include:

• UCL’s David Eaves launches a global DPI Map

• A cyberattack on Indonesia's national data center paralyzes government services

• Brunei’s challenges and opportunities in becoming a Smart Nation

In recent months, we have also been shouting out others who have inspired our work, and who we continue to learn from. This week it is the turn of aPolitical who write, host events, and build communities of practice around government and the public sector, including on digital government. Check out their recent announcement of a Government AI campus they are building with the help of Google!

As a reminder, we have recently begun to expand our digital government coverage away from just Substack and onto Linkedin, Twitter and Instagram. For original content, audience engagement, and roundups of all our pieces, feel free to follow us over on those channels. Also check out our sister newsletter, interweave.africa.

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UCL’s David Eaves launches a global DPI map - David Eaves

The Institute for Innovation and Public Purpose has just launched their Digital Public Infrastructure (DPI) Map.

• The free web-based map aims to capture ongoing DPI initiatives across the globe, from identity systems to payments to data exchange systems.

• Focused on 132 countries across Africa, the Caribbean, Latin America, South Asia, and Southeast Asia, the tool also features some insights tracking, to show how countries stack up globally, providing implicit recommendations for next steps for governments.

• The DPI Map is looking for feedback! Leave thoughts via this page: https://dpimap.org/contribute

Our Take: It has been clear for a while now in our interweave interviews (e.g., Gayan Peiris) that DPI is the future of digital government. With initiatives like the UN DPI Safeguards recognizing the stakes of these programs for harm and for good, tools like UCL’s DPI Map are a valuable contribution to the space.

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Cyberattack on Indonesia's national data center paralyzes government services - Reuters

Indonesian President Joko Widodo has ordered an audit of government data centers following a severe ransomware cyberattack that disrupted multiple government services.

• The cyberattack affected over 230 public agencies including ministries, immigration services, and major airports.

• According to Indonesia's cybersecurity agency, 98% of the data in one compromised center was not backed up, highlighting the need for better data management practices.

• Indeed, while backup capacity was available, it was optional for agencies due to budget constraints, a practice that will now be revised.     

Our Take: Earlier this year, interweave wrote about how failures in Korea’s digital systems brought the government to a state of paralysis. Indonesia’s situation is a similar cautionary tale: coming fresh off the back of announcing a shiny new digital tool, we are reminded of the need to “do the plumbing and fix the pipes” in making sure that infrastructure is secure and functioning before chasing the new thing.

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Brunei’s challenges and opportunities in becoming a Smart Nation - Vanne Khut, AMRO Asia

Brunei has rapidly adopted digital technology since the COVID-19 pandemic, driving significant growth and innovation in its ICT sector.

• The ICT sector in Brunei grew by 15.9% in 2020 from just 0.1% in 2019, playing a key role in the country’s economic diversification.

• Digital payments and e-commerce in particular have seen significant developments with solutions like BIBD QuickPay, Progresif Pay, DSTPay, and Beep Digital Solutions, alongside the Digital Payment Hub project.

• But despite advancements, challenges such as a small domestic market, low digital literacy, and labor market issues persist. To achieve Brunei’s goal of becoming a Smart Nation, and to combat these challenges, a new Digital Economy Masterplan 2025 focuses on enhancing digital capacity and infrastructure.

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GovTech News in Brief

Singapore and Cambodia sign Memorandum of Understanding on cooperation on Digital Government - Singapore Ministry of Communications and Information

Singapore and Cambodia have signed an agreement to enhance digital government cooperation, including launching a Financial Transparency Corridor initiative to boost cross-border financial services for SMEs.

Our Take: Elsewhere this week, Singapore and China signed an agreement to advance cooperation in commercial data flows and AI governance, with an aim to facilitate cross-border data standards and enhance mutual understanding of AI Governance frameworks.

Italy to set up AI fund of 1 billion euros, PM says - Reuters

Italy’s Prime Minister Giorgia Meloni  has announced a $1 billion euro investment fund to promote AI projects as the country seeks to go its own way on AI, including preparing a bill to regulate the sector on jobs and inequity.

Government advances life events programme for enhanced public services - Irish Government

The Irish Government’s Life Events Programme has been given a green light,, including a Digital Wallet app for storing personal documents and a platform for simplifying access to services around major life events.

Our Take: We have been following Ireland’s Life Events approach since interviewing Tony Shannon almost 18 months ago, and are excited to see this proactive form of government make it to the European stage.

Switzerland extends CBDC trial by 2 years after promising early results - Wahid Pessarlay, CoinGeek

Switzerland has extended its pilot wholesale central bank digital currency (wCBDC) pilot for 2 years following a successful 9-month pilot.

Our Take: While digital government has historically focused straightforwardly on translating analogue government services to the digital sphere, the CBDC shift is only part of a broader move towards a “fintech for government” agenda, as Global Government argues elsewhere this week.

Australia aligns on ISO mobile driver’s license standard as New South Wales leads on digital ID - Joel R. McConvey, Biometric Update

Australia’s largest state has poured $41.5M into augmenting the state with an online licensing and compliance system that is set to encompass an 80 license formats.

Our Take: Practical applications like the new compliance system are certainly steps forward for Australia’s digital ID efforts. But more broadly, the country  still has data standardization to do with its mobile drivers’ licenses (mDL), having launched them before the standards were finalized.

Philippines launches official national digital ID - Ayang Macdonald, Biometric Update

The Philippine Statistics Authority (PSA) has unveiled two new biometric authentication services, eVerify and National ID Check, to enhance secure and efficient transactions, marking a significant step in the country's digital transformation.

Partners convene for stronger digital impact in Sri Lanka - UNDP Sri Lanka

Sri Lanka has emphasized Digital Public Infrastructure (DPI) as pivotal in its national digital transformation, with the Ministry of Technology leading strategic partnerships to pave the way for it to support economic growth, service delivery, and social inclusion.

Gulf Edge and Google Cloud to develop sovereign cloud in Thailand - Georgia Butler, Data Center Dynamics

Google Cloud and the Gulf Edge Company are partnering to establish Thailand's first sovereign cloud, combining Google's AI and analytics capabilities with local data residency and security needs.

EU mulls five-year ban on facial recognition tech in public areas - Foo Yun Chee, Reuters

The EU is reportedly considering banning facial recognition in public places for between 3-5 years to study and mitigate risks, with potential exceptions for security and R&D. The proposal is expected to be presented next month.

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The Theory Behind the Practice

Broadening the gains from Generative AI: the role of fiscal policies - IMF, Fernanda Brolla et al.

GenAI promises significant productivity and public service improvements, but also poses risks of labor disruptions and inequality. The IMF explores how fiscal policies can guide GenAI deployment and mitigate adverse effects, advocating for an agile approach to adapt to varying development scenarios.

Our Take: As AI technology advances, thoughtful budgeting in public sector investment for fundamental research and infrastructure is crucial. This approach ensures that AI benefits are equitably distributed, especially in vital sectors like education, healthcare, and public administration, where private funding might fall short.

Why we need global coordination on data, not just AI - Stephanie Diepeveen & Astha Kapoor, World Economic Forum

Data is one of the three pillars of Generative AI, but this World Economic Forum column questions whether global discussions on digital public infrastructure are failing to consider data as its own agenda.