OJK Together With The Fintech Association Launches Artificial Intelligence Code Of Ethics Guidelines For The Financial Technology Industry

JAKARTA The Financial Services Authority together with four Fintech associations in the Indonesian Fintech Association (AFTECH), the Indonesian Sharia Fintech Association (AFSI), the Indonesian Joint Funding Fintech Association (AFPI), and the Indonesian Fund Urun Service Association (ALUDI) launched the Guide to the Code of Artificial Intelligence (Artificial Intelligence) which is Responsible and Trusted in the Financial Technology Industry.

The launch of the Guide was carried out by the Chairman of the Board of Commissioners of the Financial Services Authority, Chief Executive of the Financial Sector Technology Innovation Supervision, Digital Financial Assets and OJK Crypto Assets, Chairman of AFTECH, Chairperson of AFPI, Chairperson of AFSI, General Chairperson of ALUDI witnessed by the Deputy Minister of Finance of the Republic of Indonesia.

Chief Executive of the Financial Sector Technology Innovation Supervision, Digital Financial Assets and OJK Crypto Assets, Hasan Fawzi hopes that the guide can be a reference for associations to draw up code of conduct in order to optimize the Artificial Intelligence (AI) function in the Fintech industry.

Hasan added that AI can provide benefits in the development of Innovation in the Fintech sector and can mitigate the risks that arise in the future.

"The launch of this guide is OJK's commitment to continue working together and collaborating with associations and industry players in ensuring that the application of this technology is carried out responsibly and can be trusted," Hasan said in his official statement, Saturday, November 25.

Hasan said that OJK also always embraces positive innovation and provides a clear direction for stakeholders in the infrastructure industry.

Chairman of the OJK Board of Commissioners Mahendra Siregar conveyed the message that technology has a central role in shaping the future of national development and is the main driver of economic, social and environmental progress.

Mahendra reminded the importance to remember that without sustainability, there would be no survival. Every technological advancement must be accompanied by a responsibility, one of which is data protection and consumers in using digital finance which is the main pillar in building solid trust in the midst of the dynamics of the digital financial world.

"Good Corporate Governance (GCG) and Governance Risk Compliance (GRC) play a crucial role in ensuring that financial institutions and digital financial service providers carry out their operations in transparency, ethics, and compliance with applicable regulations," he explained.

The event was also launched by Insurtech White Paper which contains an overview of the implementation of the Insurtech business model in Indonesia, which includes various challenges, opportunities, suggestions related to policy formulation.

Meanwhile, 5th Indonesia Fintech Summit & Expo (IFSE) 2023 as the culmination of the 2023 National Fintech Month (BFN) will last for two days from 23-24 November 2023.

This event is a form of synergy and collaboration between the Financial Services Authority (OJK), the Indonesian Fintech Association (AFTECH), the Indonesian Sharia Fintech Association (AFSI), and the Indonesian Joint Funding Fintech Association (AFPI). At this year's IFSE 2023 took the theme Accelerating Growth: Promoting Sustainable Integration and Collaboration for A Stronger Digital Economy.

In this IFSE 2023 activity, there were 25 sessions at the Main Conference or Plenary Session, with more than 70 national and international speakers presenting fintech industry players, regulator representatives and related Ministries/Institutions, as well as associations.

The Summit activity that lasted for two days raised various interesting topics, including related to financial inclusion, digital talent, capital market trends, digital banking transformation, development of crypto assets in Southeast Asia, Cyber Security & Personal Data Protection (PDP), MSME Digitization, digital public infrastructure strengthening, fintech collaboration with the insurance industry, women's leadership potential and gender equality in the Fintech industry, the outlook for industrial fintech industry 2024, and many other interesting topics. No less interesting, there are more than 36 booths from regulators, fintech associations, fintech industry players, MSMEs, and Supporting Media.

Secretary General of AFTECH, Budi Gandasoebrata, stated that IFSE 2023 is an important momentum for all stakeholders to formulate developments, innovations, and the future of the fintech sector in Indonesia. IFSE 2023 is a place for discussion and meetings for regulators, industry players, and other partners to determine the development strategy of the fintech sector. This is expected to reach people who are included in the underbanked category, so that this sector has a strategic role in advancing the digital economy in Indonesia.

"Based on the AFTECH Annual Members Survey 2022/2023, some fintech companies stated that they had made changes or expansions of business models, which showed a significant increase compared to the previous year. The existence of a tech-winter phenomenon is a momentum for industry players to innovate, by launching various product and service innovations to maintain the company's performance," said Budi.

AFSI General Chair Ronald Yusuf Wijaya revealed that AFSI is very honorable to be able to participate in the IFSE 2023 event. Ronald explained that IFSE 2023 is an important momentum for AFSI to be able to increase education and literacy to the public regarding sharia fintech in Indonesia.

The number of Muslims in Indonesia is quite large. This potential should be an opportunity for AFSI members to further increase their education and literacy so that the Muslim community can better understand the usefulness and benefits of sharia fintech, "explained Ronald.

Furthermore, AFPI General Chairperson Entjik S. Djafar appreciated the IFSE 2023 event. According to him, IFSE 2023 is a momentum for all fintech industry players to work together in advancing the digital economy in Indonesia and increasing literacy on the use of fintech services in Indonesia.

"Of course, digital penetration in the financial sector must also be followed by an increase in public understanding of the services provided by fintech service providers. With public understanding of services, it is hoped that they can take advantage of digital financial technology more responsibly and appropriately," he said.

The IFSE 2023 event can certainly take place in collaboration and close cooperation between AFTECH, members, regulators, and other fintech associations. Therefore, Secretary General of AFTECH Budi Gandasoebrata appreciated all the support that had been given for the implementation of IFSE 2023 and also BFN 2023.