Bank Indonesia: AI Adoption Boosts Central Bank Productivity and Efficiency

Bank Indonesia has emphasised that artificial intelligence (AI) has the potential to boost productivity, efficiency, and innovation in the execution of central bank duties and within the financial sector over the medium and long term. The statement was made during the 31st Executive Meeting of East Asia-Pacific Central Banks (EMEAP) Governors’ Meeting held in Singapore. Bank Indonesia Governor Perry Warjiyo stated that the implementation of AI at the central bank is being carried out in stages by strengthening data and metadata quality, governance, human resource capabilities, and various innovations, while ensuring the sovereignty of data and strategic infrastructure. “The success of AI adoption depends not only on technology but also on the synergy between people, processes, and good governance,” Perry said in an official statement received in Jakarta on Friday. Through the meeting, central bank governors from the Asia-Pacific region agreed to strengthen the governance of AI adoption in central banks. The forum discussed opportunities to utilise AI to improve central bank performance, as well as its potential risks to the economy and financial system stability. Consequently, the governors stressed the importance of central bank preparedness in responding to global dynamics through an adaptive policy mix, ensuring that AI adoption is carried out responsibly by strengthening governance, supervision, and risk mitigation. The forum also highlighted that AI adoption in central banks and the financial sector must be balanced with stronger governance and supervisory frameworks. This step is considered important to anticipate increased risks arising from dependence on AI technology providers and cloud computing, as well as interlinkages of risk between financial institutions and across countries. In line with this, the EMEAP Central Bank Governors also agreed to strengthen regional collaboration to share experiences and best practices in developing AI governance, enhancing cyber resilience, and handling increasingly cross-border digital fraud and scams. The 31st EMEAP Meeting was attended by the Governors of the Central Banks of Australia, Hong Kong SAR, Indonesia, Japan, Korea, Malaysia, New Zealand, the Philippines, Singapore, and Thailand, as well as the Deputy Governors of the Central Banks of China and Hong Kong SAR. The 32nd EMEAP Meeting in 2027 will be chaired by Bank Indonesia.