OJK: Banks’ business transformation presents supervisory challenges
Jakarta (ANTARA) – Financial Services Authority (OJK) Chief Commissioner Friderica Widyasari Dewi said the transformation of banking businesses, driven by technological developments including crypto-assets and frontier artificial intelligence, presents both opportunities and challenges for banking supervision.
She stressed that technological transformation and changes in banks’ business models require supervisory authorities to be prepared to anticipate evolving risks while supporting innovation and the expansion of banking activities.
“Indonesia continues to encourage the expansion of banks’ activities and business opportunities, while ensuring a regulatory balance to anticipate the risks arising from these developments,” Friderica said in an official statement received in Jakarta on Monday.
In this connection, OJK Banking Supervision Chief Executive Dian Ediana Rae underlined the importance of guiding the use of new technologies to support innovation that is safe, transparent and sustainable, while maintaining the stability and integrity of the financial system.
Developments in digital assets, including stablecoins and tokenisation, are seen as offering opportunities to improve the efficiency of payments and cross-border transactions.
However, these developments also bring risks that need to be anticipated, including risks to financial stability and consumer protection, fraud, money laundering and terrorist financing (anti-money laundering and countering the financing of terrorism/AML/CFT), as well as the interconnectedness of banks, payment service providers and digital asset platforms.
She said supervisors therefore need to strengthen risk-based, principle-based and technology-neutral approaches.
She added that these efforts should be accompanied by cooperation and policy harmonisation across jurisdictions, so that supervision can keep pace with innovation without neglecting prudential principles.
In addition to current risks, Dian said supervisory readiness must anticipate longer-term technological challenges, including quantum computing and the need to transition to post-quantum cryptography.
These anticipatory measures are important for strengthening supervisory capacity and banks’ digital resilience before such risks have a material impact on the financial system, she added.
These issues were discussed at the Basel Committee on Banking Supervision (BCBS) Meeting and the 24th International Conference of Banking Supervisors (ICBS), held in Bali from 28 September to 1 October 2026.
OJK and Bank Indonesia (BI) hosted the events, which brought together around 300 delegates from more than 60 countries to discuss banking supervisory challenges amid digital transformation, changing business models and the growing complexity of risks to the financial system.
The events served as a strategic forum to strengthen dialogue and cooperation among authorities in safeguarding banking resilience and global financial system stability.