Asset Protection, Privacy, and Consumer Data in Digital Banking: A Comparative Study of Indonesia and Malaysia

Abstract

The protection of consumers' assets, privacy, and personal data has become a fundamental issue in digital banking due to the increasing risks of cyberattacks and personal data breaches. Although Indonesia has established various legal instruments governing digital banking and personal data protection, the existing regulatory framework remains fragmented, creating challenges for effective consumer protection. This study aims to analyse the legal protection of consumers' assets, privacy, and personal data in Indonesia and Malaysia and to identify regulatory gaps affecting the effectiveness of Indonesia's digital banking framework. The research employs a normative juridical method using statutory, conceptual, and comparative legal approaches. The findings indicate that Indonesia's regulatory framework is constrained by fragmented regulations, overlapping institutional authority, and limited regulatory harmonisation, resulting in weaknesses in cybersecurity governance and legal enforcement. By contrast, Malaysia has developed a more integrated regulatory framework through the Financial Services Act 2013, the Islamic Financial Services Act 2013, the Personal Data Protection Act 2010, and policy documents issued by Bank Negara Malaysia, providing greater institutional coordination and regulatory consistency. The study concludes that strengthening Indonesia's digital banking regulatory framework requires greater regulatory harmonisation, stronger institutional coordination, and integrated governance to enhance legal certainty, cybersecurity resilience, and consumer trust.