Name in original language
Tata Kelola Kecerdasan Artifisial Perbankan Indonesia
Initiative overview
Artificial Intelligence Governance for Indonesian Banking sets out a comprehensive framework to guide the responsible development and use of artificial intelligence within the banking sector. The initiative addresses the rapid adoption of AI in banking and the associated risks, including bias, limited transparency, cybersecurity threats, and potential impacts on financial system stability. It emphasises that the use of AI by banks must align with prudential principles, customer protection, and the safeguarding of banking and financial stability, and should be managed throughout the entire AI lifecycle.
The initiative outlines key elements of AI governance, including guiding values and principles, risk identification and classification, and structured risk management processes. It identifies major risks such as deepfakes, black box models, algorithmic bias, data quality weaknesses, over-reliance on AI, and cyber threats. These risks are discussed in relation to core banking activities, including credit assessment, fraud detection, customer services, compliance, and operational functions. While recognising opportunities from predictive, generative, and agentic AI, the initiative stresses that these technologies must be implemented in a controlled, accountable, and responsible manner.
Governance arrangements focus on the responsibilities of banks to establish effective oversight, leadership involvement, clear roles for AI developers and users, documented internal policies, and integration with existing risk management, compliance, and internal control frameworks. The initiative promotes alignment with national strategies, ethical principles, and international standards, and highlights the importance of collaboration among banks, regulators, third-party providers, and other AI actors across the AI lifecycle. It also identifies challenges related to skills, leadership, AI literacy, and organisational readiness.
The initiative further provides guidance on supervision and audit, including expectations for monitoring, documentation, auditability, transparency, and human oversight. AI governance is presented as a continuous process that must adapt to technological developments, emerging risks, and evolving regulatory approaches. The overall objective is to ensure that AI systems used in Indonesian banking remain trustworthy, secure, explainable, and accountable, while supporting innovation and improving efficiency without compromising prudence or financial stability.
