OJK Chief Comments on Digital Banks Still 'Burning Money'

The Financial Services Authority (OJK) is committed to supporting the transformation of the banking industry towards value-added services through the ‘Beyond Banking’ concept, according to Dian Ediana Rae, Chief Executive of Banking Supervision and Member of the Board of Commissioners. Speaking at the Digital Banking Forum 2026, he highlighted that this push aligns with Indonesia’s significant potential in developing the digital economy, which the financial sector, including banking, must capitalise on. Currently, 75.6% of Indonesia’s population, predominantly millennials and Gen Z, are proficient in using technology, with 29.1% utilising online banking services. The OJK noted several drivers for the development of digital banking services, including digital service transformation, innovations that boost e-commerce transactions, and strengthened collaboration between banks, fintech firms, and startups. This transformation aims not only to enhance efficiency but also to create personalised, responsive services that reach a broader customer base. The OJK has issued various regulations to strengthen digital business models, technology-based products and services, and risk management to mitigate increasingly complex cyber and fraud risks. The authority is also intensifying its oversight, including strengthening the governance of Artificial Intelligence (AI) within the banking sector.