Artificial intelligence is transforming the banking sector, improving efficiency in areas such as fraud detection, credit assessment, and compliance monitoring, while also introducing new regulatory and governance challenges. To address these developments, Indonesia’s Financial Services Authority (OJK) has issued the AI Governance for Indonesian Banking Guidelines, setting out principles for responsible AI adoption aligned with international standards and the Personal Data Protection Law. These guidelines are designed to help banks embrace innovation without compromising stability, fairness, or security.

This article is a collaboration between the Technology Media and Telecommunication Practice Group led by Andre Rahadian and Mika Isac Kriyasa and the Financial Institutions Practice Group led by Rio Pasaribu of Dentons HPRP. The team is supported by Josha Ponggawa (Senior Associate), and Pritta Maharani Pribadi (Associate). With deep expertise in financial services, technology, and regulatory compliance, the authors provide a practical overview of OJK’s new guidelines, highlight key governance and risk management considerations, and offer insights to support the responsible integration of AI in banking operations.

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