After updating Java to version 1.8.0_111 Forms 11gR2 wont load, Application Blocked by Java security

We are providing a system for the energy marked where user interfaces are in Oracle Forms.,

We are using Fusion Middleware Forms and Reports 11gR2 (Forms 11.1.2.2.0).

Since the upgrade to Java 1.8.0_111 was available last week more and more customers report that they cannot run the application anymore, and we have to provide them with workarounds.

The only workaround we know off is to edit the java.security file and remove or comment out the line:

jdk.jar.disabledAlgorithms=MD2, RSA keySize < 1024

I have investigated the problem and can see that all the Jar files provided by Oracle for Forms 11.1.2.2 are signed with the MD2 algorithm, which conflicts with the security rule.