Jakarta, INTI - Indonesia's banking industry is rapidly expanding the use of artificial intelligence (AI) to improve operational efficiency and enhance customer services.
According to data from the Indonesian Banks Association (PERBANAS) and IBM, AI adoption in the country's banking sector increased from around 30% in 2024 to 42% in 2025, before reaching 57.9% in the first quarter of 2026.
As AI adoption continues to accelerate, Indonesia's Financial Services Authority (OJK) has emphasized that AI should serve as a decision-support tool rather than the sole basis for critical banking decisions, particularly in credit approval.
Aprilia Ratna Palupi, Deputy Director of the Directorate for Banking Institutions, Products, and Activities Regulation at OJK's Banking Regulation and Development Department, said AI is designed to support banking operations, while final decisions must remain subject to professional verification and human oversight.
"AI will undoubtedly become increasingly important in the future, but it must be implemented responsibly. Banks should ensure that AI solutions are deployed according to their specific operational needs," Aprilia said during an OJK journalist workshop in Tangerang on Monday, June 29, 2026.
She explained that AI can significantly improve analytical processes and operational efficiency, but its recommendations should not automatically determine lending decisions.
For example, banks cannot rely solely on AI to decide whether a customer qualifies for a loan without conducting additional assessments. While AI has become an integral part of digital transformation, its implementation must continue to prioritize sound governance and effective risk management.
Beyond credit analysis, banks are also using AI to improve customer service through chatbots capable of answering routine inquiries automatically. More complex requests are seamlessly transferred to human customer service representatives.
"When customers require more complex assistance, the system will escalate the conversation to a customer service officer," she added.
AI Expands Across Banking Operations
OJK Chief Executive for Banking Supervision Dian Ediana Rae said AI adoption within Indonesia's banking industry continues to evolve beyond basic machine learning and process automation toward more advanced technologies such as Generative AI (GenAI) and Agentic AI, which are capable of supporting increasingly autonomous decision-making.
"This evolution demonstrates that AI has become a key component of the banking industry's digital transformation, helping improve efficiency, productivity, and customer experience," Dian said in written remarks following OJK's Monthly Board of Commissioners Meeting in May.
One of the fastest-growing applications is the use of Generative AI for internal knowledge management. Several banks have developed AI-powered knowledge hubs that integrate internal documents, corporate policies, product information, operational procedures, and regulatory requirements into a single platform.
These systems enable employees to access accurate information more quickly, improving service quality, ensuring information consistency, and supporting better decision-making. They also help banks manage tens of thousands of documents and hundreds of thousands of pages more efficiently while significantly reducing information retrieval time.
Enhancing Customer Experience Through AI
AI is also transforming customer engagement through chatbots and virtual assistants powered by Large Language Models (LLMs) and Retrieval-Augmented Generation (RAG).
These technologies enable more natural and contextual interactions, allowing customers to check account information, submit complaints, obtain product information, access voice-enabled services, and receive multilingual support.
According to Dian, AI solutions are already capable of handling approximately 35% to 40% of customer service interactions. This has reduced the workload of contact centers, lowered operational costs by tens of billions of rupiah annually, and accelerated response times.
Banks are also leveraging AI to strengthen marketing and business development through personalized recommendations and predictive marketing. By analyzing customer behavior and transaction patterns, AI helps financial institutions recommend relevant products, send payment reminders, and design more targeted customer acquisition strategies.
In addition, Generative AI assists frontline employees by providing instant access to information and recommended solutions when handling customer inquiries.
Collectively, these AI implementations have reduced service resolution times by more than 60%, improved employee productivity, accelerated decision-making, and significantly enhanced the overall customer experience, while OJK continues to stress that human oversight remains essential in all critical banking decisions.
Conclusion
As AI adoption continues to accelerate across Indonesia's banking industry, financial institutions are leveraging the technology to improve efficiency, enhance customer service, and strengthen decision-making. However, OJK emphasizes that AI should complement, not replace, human judgment, ensuring that innovation is balanced with strong governance, risk management, and professional oversight.
Read more: Japan Plans to Invest 1 Trillion Yen in Sovereign AI Development and 10 Million Robots