Jakarta, INTI - The adoption of artificial intelligence (AI) in Indonesia’s banking industry continues to accelerate. However, the growing use of this technology has not been fully matched by the readiness of internal governance frameworks across financial institutions.
This finding was highlighted during the launch of a white paper titled Digital Sovereign AI and the Future of Trusted Banking, developed by the Indonesian National Banks Association (Perbanas), IBM, and K&A. The launch took place at the Grand Hyatt Jakarta on Tuesday, October 27, 2026.
AI Adoption Outpaces Governance Readiness in Indonesia’s Banking Sector
A survey of 91 respondents from 35 financial institutions found that 73% of banking professionals consider digital sovereignty highly relevant to their transformation agendas over the next 12–24 months. However, the average maturity of AI governance across banking organizations stands at just 2.74 out of 5, equivalent to approximately 55%.
Toto Prasetio, Head of Technology and Security at Perbanas, said the banking industry needs to shift its focus from simply adopting AI toward implementing digital sovereignty in day-to-day operations.
“As AI adoption continues to increase, the banking industry’s priority is to develop a shared understanding of how digital sovereignty can be implemented in practice. Stronger alignment among banks, regulators, industry associations, and technology partners will be essential to building the governance frameworks and capabilities needed to support responsible and trusted AI adoption,” Toto said.
He emphasized that alignment among banks, regulators, industry associations, and technology partners is necessary to establish adequate governance frameworks and capabilities. This coordination would help ensure that AI is deployed responsibly and reliably.
Juvanus Chandra, Managing Partner of IBM Consulting Indonesia, noted that AI is no longer merely a technology being prepared for the future. Instead, it has become an integral part of everyday banking operations.
“With AI adoption accelerating rapidly and autonomous capabilities becoming increasingly advanced, the key question is how banks are actually controlling the technology and the decisions it makes today,” Juvanus emphasized.
Perbanas and IBM Recommend Stronger AI Monitoring and Governance Frameworks
To address the gap in governance readiness, the white paper recommends several practical measures that financial institutions can implement.
One recommendation is to establish an AI use-case registry. This approach enables banks to document and track AI applications across their organizations, allowing for more structured oversight and monitoring.
Banks are also encouraged to strengthen regular AI model monitoring to ensure that these systems remain under appropriate supervision and continue to support responsible AI implementation.
These measures are intended to help Indonesia’s banking sector strengthen digital sovereignty, improve AI governance, and build greater trust as the use of AI becomes increasingly widespread across financial services.
Conclusion
Indonesia’s banking sector is accelerating AI adoption, but stronger governance remains essential to ensure responsible and trusted implementation. Findings from the Perbanas, IBM, and K&A white paper highlight the need for greater digital sovereignty, structured AI use-case registries, and continuous model monitoring. By strengthening collaboration among banks, regulators, and technology partners, the industry can improve oversight, manage AI-related risks, and build trust in digital financial services.
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