Indonesia advances AI-driven Islamic finance and strengthens Open Banking data protection

Indonesia is promoting the use of artificial intelligence to spur innovation in the Islamic finance sector, emphasizing its potential to create new products and improve services. At the same time, regulators and financial institutions are urging stronger safeguards for customer data as open‑banking platforms allow banks to share information with third‑party providers via APIs.

Authorities highlight the need for encryption, multi‑factor authentication, access controls and continuous monitoring, while also requiring clear consent and transparency for users. Recent data‑privacy regulations are being applied to digital finance, and consumer education is stressed to reduce the risk of identity theft and fraud. Together, these initiatives aim to build a secure, trustworthy ecosystem for digital financial services in Indonesia.