2655084 - Program ID in AS Java JCo RFC Provider does not start with error "Unencrypted communication is rejected by this system"

Configured snc/only_encrypted_rfc=1 in ABAP system, then found program ID <yyyyyyyy> created in NWA -> JCo RFC Provider can not start up, following error get throw out.

If check latest defaultTrace.*.trc file following log can be seen:

#2.0�#2018 06 12 08:24:39:611#+0800#Error#com.sap.engine.services.rfcengine#
#BC-MID-CON-JCO#rfcengine#C000FE80000004AB0000000000003FD4#5925750000000004#
sap.com/tc~lm~itsam~ui~mainframe~wd#com.sap.engine.services.rfcengine.Bundle.initialize()
#testuser#95##DDD277A86DD611E880B80000005A6B76#e4494d7c6dd611e8ad300000005a6b76##0#
Thread[HTTP Worker [@602705832],5,Dedicated_Application_Thread]#Plain##
Failed to initialize JCo RFC Provider bundle test_snc

#2.0�#2018 06 12 08:24:39:626#+0800#Error#com.sap.engine.services.rfcengine#
#BC-MID-CON-JCO#rfcengine#C000FE80000004AB0000000100003FD4#5925750000000004#
sap.com/tc~lm~itsam~ui~mainframe~wd#com.sap.engine.services.rfcengine.Bundle.initialize()
#testuser#95##DDD277A86DD611E880B80000005A6B76#e4494d7c6dd611e8ad300000005a6b76##0#
Thread[HTTP Worker [@602705832],5,Dedicated_Application_Thread]#Plain##
java.rmi.RemoteException: Failed to create the JCo client pool
test_snc001|EN|AS=[demoserver|00|] for JCo RFC Provider bundle test_snc;
nested exception is: com.sap.mw.jco.JCO$Exception: (103) RFC_ERROR_LOGON_FAILURE:
Unencrypted communication is rejected by this system#
......
Caused by: com.sap.mw.jco.JCO$Exception: (103) RFC_ERROR_LOGON_FAILURE:
Unencrypted communication is rejected by this system
.....
Caused by: RfcException: [null]
    message: Unencrypted communication is rejected by this system
    Return code: RFC_SYS_EXCEPTION(3)
    error group: 103
    key: RFC_ERROR_LOGON_FAILURE

#2.0�#2018 06 12 08:24:39:657#+0800#Error#
com.sap.security.core.server.destinations.provider.mbeans.SAP_ITSAMJCoDestinationsManagementService_Impl#
#BC-JAS-SEC#tc~sec~destinations~provider#C000FE80000004AB0000000800003FD4#5925750000000004#
sap.com/tc~lm~itsam~ui~mainframe~wd#
com.sap.security.core.server.destinations.provider.mbeans.SAP_ITSAMJCoDestinationsManagementService_Impl
#testuser#95##DDD277A86DD611E880B80000005A6B76#e4494d7c6dd611e8ad300000005a6b76##0#
Thread[HTTP Worker [@602705832],5,Dedicated_Application_Thread]#Plain##
Could not start JCo Destinations. Reason : java.rmi.RemoteException:
Failed to create the JCo client pool test_snc|EN|AS=[demoserver|00|]
for JCo RFC Provider bundle test_snc; nested exception is:
com.sap.mw.jco.JCO$Exception: (103) RFC_ERROR_LOGON_FAILURE:
Unencrypted communication is rejected by this system#

SAP NetWeaver Java 7.1x onwards version

jco rfc provider, rfcengine, Unencrypted communication is rejected by this system, snc, The JCo servers could not be started , KBA , BC-JAS-SEC , Security, User Management , BC-SEC-LGN , Authentication , BC-MID-CON-JCO , Java-Connector , BC-SEC-SNC , Secure Network Communications , Problem