Bank Indonesia (BI) underscores the critical role of artificial intelligence (AI) technology in fortifying fraud detection systems within the burgeoning digital financial sector. This stance comes as digital crime, including rampant online gambling, grows increasingly sophisticated and complex, making advanced early detection tools imperative.
BI Deputy Governor Juda Agung highlighted the urgency of this issue during the FEKDI & IFSE 2025 forum in Jakarta on Saturday, November 1, 2025. “The role of AI in detecting fraud, particularly through robust fraud detection systems, is now paramount,” Agung stated. “Fraud is widespread in the digital world in various forms, including online gambling.”
According to Agung, AI possesses the unique ability to identify suspicious transaction patterns and analyze user behavior in real-time. This capability allows it to detect digital fraud indicators far more swiftly and accurately than conventional systems. To tackle this growing menace, BI is actively collaborating with the Financial Services Authority (OJK) and the Ministry of Communication and Digital Affairs (Komdigi) to address fraud cases across the digital financial landscape.
Furthermore, Agung cautioned against regional dynamics, noting the Philippines’ recent ban on online gambling. “This could potentially lead perpetrators of online gambling to shift their operations to neighboring countries, including Indonesia,” he warned, emphasizing the need for heightened vigilance. Reinforcing this perspective, Endang Trianti, Head of BI’s Digital Development and Innovation Department, added that “fraud operates through networks, and fraudsters capitalize on network speed. Therefore, combating it must also be a network-based effort.”
Beyond its prowess in fraud prevention, Juda Agung also believes AI holds immense potential for broadening financial access for the public. “Do not envision AI as a robot replacing humans,” he urged. “Instead, imagine AI as an exceptionally intelligent and empathetic assistant, deeply understanding user needs.”
He elaborated that AI technology can process the digital footprints generated by financial transactions through digital payment systems like QRIS. This AI-processed data will then form the foundation for alternative credit scoring. For instance, micro, small, and medium-sized enterprise (MSME) players utilizing QRIS leave digital traces of their income, expenses, savings, and customer base.
“These digital financial footprints from an MSME owner can be transformed by AI into a gateway to financial access when they require loans from banks or fintech lending platforms, a process frequently referred to as alternative credit scoring,” Agung explained. This strategic move aligns seamlessly with BI’s policy direction to accelerate the digital transformation of payment systems and significantly expand financial inclusion nationwide.
Agung stressed that inclusive digitalization extends beyond merely possessing super chips or the most advanced algorithms. He underscored the critical importance of financial digitalization technology reaching and positively impacting the lives of those who need it most. “While advanced technology is necessary, it is not sufficient,” Agung concluded. “We need a paradigm shift. We require not just high-tech, but right-tech—appropriate technology that truly serves its purpose.”
Summary
Bank Indonesia (BI) highlights the critical role of Artificial Intelligence (AI) in fortifying fraud detection systems within the burgeoning digital financial sector. Deputy Governor Juda Agung stated that AI is paramount for identifying sophisticated digital crimes, including online gambling, by analyzing suspicious transaction patterns and user behavior in real-time for swift, accurate detection. BI actively collaborates with other agencies to combat this menace, while also warning about potential shifts of online gambling operations from neighboring countries to Indonesia.
Beyond fraud prevention, BI believes AI holds significant potential for broadening financial access, seeing it as an intelligent assistant rather than a human replacement. AI technology can process digital footprints from financial transactions, such as those made via QRIS, to form the basis for alternative credit scoring. This enables micro, small, and medium-sized enterprise (MSME) players, for instance, to leverage their transaction data as a gateway to financial access and loans. This strategy aligns with BI’s policy to accelerate digital transformation and expand financial inclusion nationwide, emphasizing “right-tech” that truly serves its purpose.
