DATA GOVERNANCE FOR ARTIFICIAL INTELLIGENCE IMPLEMENTATION IN THE FINANCIAL SECTOR: AN INDONESIAN PERSPECTIVE

Regina Damaris (), Sinta Dewi Rosadi and I Made Diyosena Bratadana ()
Additional contact information
Regina Damaris: Assegaf Hamzah and Partners, Indonesia
Sinta Dewi Rosadi: Universitas Padjadjaran, Indonesia
I Made Diyosena Bratadana: Assegaf Hamzah and Partners, Indonesia

Journal of Central Banking Law and Institutions, 2025, vol. 4, issue 3, 445-472

Abstract: The fast-evolving landscape of Artificial Intelligence (AI) is transforming industries worldwide, including Indonesia’s financial sector. While AI presents immense opportunities for innovation and efficiency, it also poses complex challenges in data governance. This paper explores the need for Indonesia to establish a comprehensive and forward-thinking data governance framework tailored to AI implementation in the financial sector. Using a literature review method and drawing on global and local regulatory developments, the paper outlines key principles for AI-related data governance, including transparency, accountability, specificity, enforceability, and adaptability. By reimagining its approach to data governance, Indonesia can mitigate the risks of data misuse, enhance personal data protection, and foster an environment conducive to responsible AI innovation. The research addresses the foregoing issues by offering a conceptual foundation for policymakers, regulators, and financial institutions in Indonesia to develop better rules and practices for managing AI-related data to strengthen Indonesia’s technological sovereignty, particularly in the financial sector. The study finds that Indonesia’s current data governance framework in the financial sector is not yet optimal for supporting AI implementation. Indonesia’s data governance framework requires adjustments in key areas, namely specificity, enforceability, and adaptability, while also promoting stronger cooperation among stakeholders.

Keywords: artificial intelligence; data governance; AI governance; financial sector; technology regulation (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://jcli-bi.org/index.php/jcli/article/view/430/86 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:idn:jclijn:v:4:y:2025:i:3b:p:445-472

DOI: 10.21098/jcli.v4i3.430

Access Statistics for this article

Journal of Central Banking Law and Institutions is currently edited by Dr. Arie Afriansyah

More articles in Journal of Central Banking Law and Institutions from Bank Indonesia Contact information at EDIRC.
Bibliographic data for series maintained by Sudiro Pambudi () and R. Dwi Tjahja Kusumo Wardhono ().