Regulating Bank Liability in Artificial Intelligence-Based Credit Decision-Making in Indonesia

Affandi Affandi

doi:10.59890/ijla.v4i3.286

Authors

Affandi Affandi Konsultan Hukum AMR

DOI:

https://doi.org/10.59890/ijla.v4i3.286

Keywords:

Bank Liability, Artificial Intelligence, Credit Decision-Making, Banking Law, Indonesia

Abstract

The use of artificial intelligence in banking credit decision-making enhances efficiency but creates legal uncertainty regarding bank liability for algorithmic risks. This study aims to analyze the regulation of bank liability in AI-based credit decision-making in Indonesia and its relation to the principles of prudence, information technology governance, and legal accountability. The research employs a normative legal method with statutory and conceptual approaches, using secondary data from legislation and relevant literature analyzed qualitatively without respondents. The findings indicate that Indonesia has no specific regulation governing AI in banking, although prudential principles and existing IT regulations serve as the legal basis for bank responsibility. In conclusion, strengthening AI-specific regulatory frameworks is necessary to ensure legal certainty and customer protection in AI-driven credit systems.

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