Indonesian Banking Sector Embraces AI for Operational Efficiency

Banks Lead the Charge in AI Adoption

Indonesian banks are at the forefront of leveraging Artificial Intelligence (AI) to transform their operations. PT Allo Bank Indonesia Tbk. (BBHI) and PT Bank BCA Syariah are among the leading institutions harnessing AI to streamline processes and enhance customer experiences. According to Ganda Raharja Rusli, Director of Risk, Compliance, and Law at Allo Bank, the bank views AI adoption as inevitable in banking operations.

Enhancing Operational Efficiency through AI

The integration of AI is expected to yield significant benefits, including cost reduction, improved accuracy, and enhanced customer satisfaction. BCA Syariah has already implemented AI and robotic automation to expedite financing processes, thereby increasing customer convenience. The bank's Director, Pranata, highlighted that AI utilization will continue to expand across various business processes to support efficiency, speed, and accuracy in customer service.

OJK's Observations on AI in Banking

The Financial Services Authority (OJK) conducted a survey in October 2025, involving 102 banks with assets totaling 99.25% of the banking sector's total assets. The survey revealed that several banks have already integrated AI into their business processes. The OJK noted the positive impacts of AI, including its role as an effective tool for comprehensive and rapid information gathering, summarization, and analysis. AI has been particularly beneficial in reducing the workload of employees in routine activities that require extensive and diverse information.

Balancing Benefits and Risks

While AI offers numerous advantages, the OJK also cautioned against potential risks associated with its adoption. These risks include job displacement due to automation, cybersecurity threats, data privacy concerns, and algorithmic bias in decision-making. To mitigate these risks, banks are advised to maintain human oversight over AI systems. The OJK emphasized that while AI can replace certain procedures, it cannot substitute the ethical values, trust, and integrity that are fundamental to the banking industry.

Future Outlook

As Indonesian banks continue to embrace AI, the sector is poised for significant transformation. The key to successful AI integration lies in striking a balance between leveraging technology for efficiency and managing the associated risks. By doing so, banks can optimize the benefits of AI while maintaining the integrity and trust that are crucial to their operations.