Massive Digitalisation! OJK Reveals the Fate of Bank Employees
Massive Digitalisation! OJK Reveals the Fate of Bank Employees
Jakarta, CNBC Indonesia — The Indonesian Financial Services Authority (OJK) has spoken out about the efficiency trends that are beginning to be seen in the banking industry, including a reduction in workforce at several major banks in the first quarter of 2026.
The OJK believes that this move is part of banks’ business strategies and is considered reasonable as long as it is done prudently, maintains good governance, manages risk, and does not disrupt service quality for customers.
According to the OJK, this efficiency trend is inseparable from the massive adoption of digital technology in the financial sector, which is changing people’s behaviour and needs regarding banking services.
“The decrease in workforce is partly influenced by the increasing trend of adopting information technology in the financial sector,” said Head of Banking Supervision at the OJK, Dian Ediana Rae, in a written response, quoted on Sunday (17/5/2026).
The OJK explained that the automation of digital services, both in terms of fundraising and lending, is making banks’ business processes more efficient.
Furthermore, digitalisation is also considered to be enabling banking human resources to be redirected to jobs with higher added value and complexity.
“This can encourage efficiency in the business processes carried out by banks,” wrote the OJK.
In the midst of pressure on the profitability of the banking industry, efficiency measures are seen as one of the strategies for banks to maintain their competitiveness. Previously, the OJK recorded that the Cost-to-Income Ratio (BOPO) of banks increased to 86.96% in March 2026 from 85.84% in the same period last year, while the Net Interest Margin (NIM) decreased to 4.38% from 4.51%.
However, the OJK emphasised that efficiency should not be carried out by ignoring employment aspects. The regulator said that banks need to retrain and reskill employees, including reallocating them to other business units.
In addition, employee reductions must also comply with applicable labour regulations.
The OJK also encourages banks to continue carrying out digital transformation and strengthening human resource competence so that the banking industry remains resilient in the face of changing financial service landscapes.