Indonesia is at a pivotal moment in its digital and economic transformation. With major initiatives such as the National Artificial Intelligence Strategy (Stranas KA) and the Ministry of Finance’s 2045 vision for financial sector deepening now underway, the strategic deployment of artificial intelligence (AI) has become central to the nation’s future. Against this backdrop, the Chamber of Indonesian Entrepreneurs (KEIND) and TAB Global convened a focus group discussion at the House of Representatives to explore how AI can be harnessed to drive the country’s competitiveness in trade, financial services and innovation ecosystems. This is a precursor event to the Asian Banker Summit 2025 to be held in Jakarta on 21 and 22 May, it serves as Asia Pacific’s foremost multi-platform leadership forum, that will bring together global industry leaders, regulators, policymakers and innovators to shape the future of finance, technology and the digital economy. Opening the discussion, Afda Rizal Armashita, Chairman of KEIND, emphasised the vital role that small and medium-sized enterprises must play in the emerging digital economy. He stressed that AI adoption must be inclusive, ensuring that innovation benefits businesses of all sizes, not just large corporations. He outlined KEIND’s commitment to fostering collaboration between entrepreneurs, policymakers and innovators to ensure that AI drives sustainable and broad-based economic growth. In his opening remarks, Foo Boon Ping, President and Managing Editor of TAB Global, framed the discussion within the broader context of Indonesia’s digital and economic transformation. He highlighted Indonesia’s leadership in Southeast Asia’s digital economy, supported by national initiatives such as Stranas KA and the Ministry of Finance’s roadmap to deepen financial services by 2045. He stressed that Indonesia’s ability to lead in AI adoption would depend not only on technological readiness but also on institutional coordination, sectoral alignment and inclusive policy frameworks. The discussion, he noted, was intended to surface practical strategies to bridge ambition with execution and ensure that AI drives sustainable, inclusive economic growth. The session featured speakers including Adisatrya Suryo Sulisto, Vice Chairman of Commission VI of the House of Representatives and Entjik S. Djafar, Chairman of the Indonesian Joint Funding Fintech Association (AFPI). It underscored the urgency of bridging gaps between policy and execution, sector-specific regulation and national ambition, while highlighting the importance of fostering public-private collaboration to ensure that AI supports inclusive and sustainable economic growth. Indonesia’s efforts were recognised as timely and significant, with major investments such as Microsoft’s $1.7 billion commitment and NVIDIA’s $200 million AI centre in Solo reflecting the country’s emerging leadership role in Southeast Asia’s digital economy. Dialogue must now translate into coordinated action to bridge gaps in infrastructure, regulation and talent development. The discussion was structured around four key themes: AI’s role in the national economic strategy, its impact on finance and regulation, innovation in fintech and payments, and public-private collaboration for AI adoption. AI and national economic strategy The discussion opened with a focus on how AI fits into Indonesia’s broader national economic and legislative strategy. Sulisto emphasised that while Indonesia was embracing technological innovation, fundamental legislative priorities must be addressed to support a healthy, competitive digital economy. He explained that Commission VI was prioritising the passage of the new Anti-Monopoly Law and the Consumer Protection Law. Robust competition policy, he stressed, was essential to ensuring that AI and other emerging technologies foster innovation without creating new monopolies or systemic risks. He warned that without strong anti-monopoly frameworks, technological concentration could stifle innovation and harm consumers. Sulisto added that investment in AI must be accompanied by safeguards that protect smaller players and new entrants, ensuring that Indonesia’s digital economy remains open, dynamic and resilient. He pointed out that legislative reforms in competition and consumer protection would be critical foundations for supporting Indonesia’s ambitions to become a leading digital economy in Southeast Asia. AI in finance, banking and regulation The conversation then turned to how AI is reshaping the financial services landscape in Indonesia. AI is already being used for fraud detection, anti-money laundering monitoring and behavioural credit scoring by leading banks, although adoption remains uneven, with second-tier banks and rural institutions lagging behind in integrating AI-driven solutions. While AI advances rapidly, regulatory frameworks are struggling to keep pace. Practical examples such as Singapore’s Veritas Toolkit demonstrate how regulators can embed principles of fairness, accountability and transparency into AI applications in finance. Similar approaches could be considered by Bank Indonesia and the Financial Services Authority (OJK) to incorporate explainability standards, human oversight mechanisms and bias checks into supervisory frameworks. Initial moves by Bank Indonesia and the OJK to deploy regulatory technology and supervisory technology platforms, such as the innovation monitoring platform PID, were important first steps. However, more comprehensive guidelines are needed to address the ethical and systemic risks arising from the widespread use of AI, particularly in areas such as credit decisioning and real-time transaction monitoring. The discussion underscored that regulators must encourage innovation while ensuring consumer protection, with practical sandboxes and pilot programmes fostering responsible AI development within a stable financial environment. AI-driven innovation in fintech and payments The dialogue then shifted towards the evolving fintech landscape in Indonesia. Djafar explained that the fintech sector had been pivotal in supporting financial inclusion, particularly for micro, small and medium-sized enterprises which represent a large proportion of Indonesia’s economy. Fintech companies, particularly members of AFPI, have been leveraging technology to bridge financing gaps for MSMEs across the country. Digital financial services adoption continues to grow rapidly, with fintechs increasingly using AI to support credit scoring, fraud detection and customer engagement. However, Djafar stressed that while digital access is expanding, it must be accompanied by greater efforts in financial education. Users need to understand the risks associated with digital financial services, including over-indebtedness and fraud. AFPI has partnered with local cooperatives and institutions to deliver financial literacy programmes alongside fintech expansion. Successful examples were cited where alternative credit scoring models based on mobile usage, social behaviour and transaction data allowed previously unbanked individuals to access loans, particularly empowering women entrepreneurs in rural areas. There was broad consensus that fintech innovation, driven responsibly by AI, can be a catalyst for financial inclusion and economic empowerment, provided it is supported by clear regulatory frameworks, ethical standards and strong consumer trust mechanisms. Public-private collaboration for AI adoption The conversation underscored that Indonesia’s AI ambitions will only be realised through sustained, structured partnerships between government, industry and innovators. Djafar highlighted AFPI’s collaboration with the Financial Services Authority in developing responsible innovation standards as a successful example of how regulatory and industry cooperation can advance AI adoption while safeguarding consumer interests. He stressed that effective collaboration must involve not only regulatory compliance but also a commitment to ethical innovation practices that prioritise consumer welfare and financial stability. NVIDIA’s AI centre in Solo was cited as a model of public-private cooperation, involving partnerships between local government, telecommunications providers and the private sector to upskill hundreds of thousands of individuals in AI competencies. This approach could be replicated across sectors such as tourism, logistics and agriculture, potentially under the leadership of KEIND, the National AI Research, Development and Innovation Agency (KORIKA) and the National Research and Innovation Agency (BRIN). Sulisto stressed that collaboration frameworks must become institutionalised rather than ad hoc. Permanent national platforms for co-developing AI policies, standards and solutions would ensure that regulation remains dynamic and aligned with technological advancements. Policy co-creation, he argued, should become the norm to foster shared ownership of outcomes between government, industry and academia. The discussion highlighted that systematic collaboration mechanisms, anchored in shared goals and continuous joint review, are essential for building the AI infrastructure and governance systems Indonesia needs to achieve sustainable digital economic growth. Strengthening fairness, inclusion and innovation The open dialogue surfaced critical perspectives on how Indonesia must manage the opportunities and risks arising from AI adoption across finance, trade and the wider digital economy. Sulisto reinforced the urgency of strengthening competition laws to ensure that AI adoption does not lead to new forms of monopolistic behaviour. He reiterated that Commission VI’s legislative agenda was fundamental to safeguarding innovation, ensuring that technological advancement remains open and competitive. Djafar highlighted the role of fintech players in advancing financial inclusion. He explained that AI-enabled platforms were already expanding credit access to underserved communities, including rural entrepreneurs and informal sector workers. Beyond access, he stressed the importance of financial education, noting that initiatives with local cooperatives and institutions were helping bridge gaps in digital literacy. The balance between regulation and innovation was also discussed. Regulation must not be static but must evolve alongside technology, with mechanisms such as regulatory sandboxes allowing new solutions to be tested in controlled environments. Clear frameworks for fairness, transparency and data privacy must be embedded from the outset, ensuring that innovation builds trust. Risk management was emphasised as critical. AI systems deployed in finance must be continuously monitored for bias, errors and unintended consequences. Best practices such as model validation frameworks and independent audits were cited as necessary tools to strengthen AI governance. Returning to the challenges faced by MSMEs, Djafar noted that while fintech had made significant progress in reaching new customer segments, barriers remained, including low digital literacy and uneven infrastructure. He stressed that building partnerships with community organisations and investing in education would be essential to ensure that underserved groups benefit fully from digital financial innovation. Across the responses, there was a shared recognition that innovation must be inclusive, competition must be fair, and regulation must evolve to protect and empower society. Advancing Indonesia’s AI future through coordinated action The focus group discussion made clear that Indonesia’s ambition to lead in the AI-driven digital economy will hinge on its ability to bridge policy, regulatory and infrastructural gaps with urgency and cohesion. Dialogue between policymakers, regulators and industry must translate into action, aligning investments with regulatory frameworks and talent development strategies. Sulisto and Djafar reinforced that AI’s potential to enhance trade competitiveness, transform financial services and promote inclusion is real, but will only be realised through systematic collaboration, sector-specific regulation and proactive governance. Their insights highlighted the transformative possibilities that AI brings to underserved communities, provided that accessibility and fairness are prioritised. The upcoming Asian Banker Summit 2025, to be held in Jakarta on 21 and 22 May 2025, will serve as a major platform to carry forward the momentum built by this dialogue. It will showcase international best practices, case studies and innovations that can help Indonesia refine its AI strategy for sustainable, inclusive growth. The future of Indonesia’s digital economy must be shaped not by isolated efforts but through collective, coordinated action grounded in principles of trust, fairness and resilience.
