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 Supporting The Critical Role Of Financial Innovation, OJK Hosts The 2nd OJK International Research Forum 2024
“Driving Financial Innovations to Enhance a Better Financial Life”

Bali, 18 November 2024 – Indonesia Financial Services Authority (OJK) is committed to continuously promote the vital role of financial innovation in shaping an inclusive and sustainable future for Indonesia's financial sector.

This was conveyed by Deputy Commissioner for Human Resources and Information Systems of OJK, Irnal Fiscallutfi, in the opening of the 2nd OJK International Research Forum (IRF) 2024 held in Nusa Dua, Bali, on Monday, 18 November 2024.

“Financial innovation plays a significant role in expanding financial services and enhancing financial inclusion, which is expected to provide opportunities for financial institutions to access broader markets, including serving unbanked and underbanked customers,” said Irnal.

In this event themed “Driving Financial Innovations to Enhance a Better Financial Life,” Irnal highlighted that the financial sector has undergone rapid technological development, and has even gone further by adopting artificial intelligence (AI) to improve efficiency, such as serving customers, assessing creditworthiness, and detecting potential defaults.

However, Irnal emphasized that the use of AI also presents challenges and risks that require mitigation, including data and cybersecurity, threats to the workforce, and issues of accuracy and accountability in automated decision-making.

“It’s important for us to ask, ‘How smart is AI?’ because, in the end, AI remains a machine limited by its algorithms and data, meaning the human role is still crucial,” Irnal explained.

To mitigate these risksseveral things that need to be developed include strengthening data and cyber security, navigating the complex technological landscape, clarifying the regulatory framework, increasing public trust, and conducting financial education and literacy.

On the same occasion, Head of OJK Institute, Agus Sugiarto, reminded that while financial innovation has the potential to expand access to financial services, it is essential to ensure that vulnerable communities are not left further behind.

“Bridging the digital divide and providing financial literacy education are key to achieving inclusive financial innovation,” Agus noted.

One of the initiatives to support the development of financial innovation is through the 2nd OJK International Research Forum, which brings together experts and practitioners from various countries with the hope of becoming a forum for exchanging insights on frontier research and best practices in the development of financial innovation so that the aspiration to build an innovative, inclusive, and globally competitive financial services industry can be realized.

“With strong commitment and collaboration among industry business actors, regulators, academics, and other stakeholders, we have the opportunity to drive positive change, advancing not only the financial sector but also contributing to economic growth and improving social welfare,” Agus concluded.