Indonesia urges strict AI risk mitigation in finance, healthcare

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3 hours ago

Jakarta (ANTARA) – Indonesia’s Deputy Minister of Communication and Digital Affairs Nezar Patria underlined the critical need for robust risk mitigation in artificial intelligence (AI) adoption, particularly within high-stakes sectors such as finance and healthcare.

According to Nezar, AI integration must move beyond a narrow focus on innovation and efficiency to actively account for potential vulnerabilities when automated systems take on decision-making roles.

“In the financial services sector—banking, for example—the use of AI, especially agentic AI granted the authority to take actions and make decisions, could lead to fatal consequences if an error occurs,” the deputy minister said in a statement, Friday (October 30).

He warned that execution errors could cause substantial financial losses or even spark systemic economic chaos.

Similar hazards apply to the healthcare sector, where AI assists in diagnosing diseases and steering medical interventions.

Nezar noted that system glitches or misdiagnoses directly endanger human lives, while compounding risks regarding the confidentiality of sensitive patient data.

With data serving as the foundational “fuel” for AI development, Nezar stressed the necessity of rigorous data governance to prevent breaches of sensitive personal information.

To safeguard the national digital ecosystem, Indonesia currently relies on existing legal frameworks, including the Law on Information and Electronic Transactions (ITE Law) and Law Number 27 of 2022 concerning Personal Data Protection.

Parallel to enforcing these regulations, Jakarta is formulating a National AI Roadmap and comprehensive AI Ethics guidelines.

Nezar emphasized that the state aims to map out technological trends carefully to foster digital innovation without imposing undue regulatory burdens.

“We need to map out these developments comprehensively first, so that our regulatory approach does not become overly burdensome,” he said.

Beyond governance, Jakarta is laying the groundwork for a secure national AI ecosystem through targeted investments in digital infrastructure, talent cultivation, as well as research and development.

The government maintains that these initiatives will run parallel to stringent risk mitigation strategies, ensuring that AI adoption delivers tangible economic benefits while keeping public safety and consumer rights front and center.

“What we need right now is to foster innovation, while simultaneously addressing the risks that may arise from the adoption of AI technology across various sectors,” Nezar concluded.