Heaptalk, Jakarta — AC Ventures (ACV), in partnership with Boston Consulting Group (BCG) and its tech build and design unit BCG X, Indonesian Chamber of Commerce and Industry (Kadin) launched a new report entitled “Harnessing the Power of GenAI in Indonesia’s Financial Services.
Central to the report’s findings is a strategic, multilateral “Deploy, Reshape, Invent” framework, which guides Indonesia’s financial institutions in integrating GenAI and maximizing its benefits effectively. This strategy involves deploying enhancements to daily use cases internally and on the customer-facing side, reshaping in-house processes and skills for greater efficiency, and inventing entirely new products to achieve more significant savings and create new revenue streams.
Among these three pillars, respondents prioritize ‘deploying’ and ‘inventing’ over ‘reshaping’ in-house processes. About 51% focus on deploying GenAI for everyday tasks, and 27% see tremendous opportunity in inventing new products and services powered by GenAI.
Globally, a separate BCG study found that 85% of financial institutions consider GenAI as a highly disruptive technology, but only 18% have a clear strategy for in-house implementation. The responses received from financial institution business leaders and fintech startups in Indonesia echoed this sentiment locally. This gap underscores a critical opportunity for the archipelago’s financial services to position itself at the forefront of the GenAI.
The data revealed that in Indonesia, around 61% of financial institutions are confident in the technological infrastructure necessary for integrating GenAI, particularly in the context of robust data and technology stacks. Nearly half of the sector’s local leaders are leveraging GenAI to elevate customer service, with a third claiming to be reaping visible benefits.
Further, about 44% of local leaders acknowledge GenAI’s potential to revolutionize risk assessment in microlending through innovative data sources and analytical models. Beyond customer service and microlending, four other areas where GenAI is seen as beneficial in the industry include productivity, rapid lending, fraud management, and hyper-personalization.
“Financial institutions would benefit from a strategic framework for integration that encompasses everything from technical implementation and governance to operations and talent. Moreover, such a framework allows for measuring outcomes, ensuring that AI initiatives continuously align with business goals. This will be critical to delivering lasting transformation and real business impact,” Managing Director and Partner at BCG X, Andy Lees, said.
As GenAI use cases become more widespread, central Indonesian banks and financial institutions are advancing related initiatives from pilot stages to scalable projects. These efforts aim to widen financial access and inclusion and ensure compliance with Indonesia’s rigorous Personal Data Protection Law.
The report also points out that while 41% of respondents are piloting GenAI use and running proof of concepts, scaling these to deliver substantial business value remains challenging. Only 37% feel they have the necessary talent, yet upskilling employees to use and interact with AI tools is one of the three lowest foundational priorities cited. Meanwhile, only 29% of respondents are confident in their operating models for GenAI readiness.
“AI and GenAI can potentially elevate Indonesia’s economy by transforming not just the private sector but also state-owned enterprises and government agencies. Effective deployment requires sustainable data centers powered by renewable energy, strict privacy laws, and strong public-private partnerships. This report provides strategic guidance for both the private and public sectors while also emphasizing the importance of cybersecurity to protect national data assets,” Pandu Sjahrir, Founding Partner at AC Ventures and Department Head of Economic and Financial Technology at Kadin, said.
