OJK: Indonesia; Developing prototype solutions to improve OJK’s grievance mechanisms

• Nov 8, 2023
• 1 min

MSC supported OJK to enhance monitoring and supervision of digital financial services through technology. We collaborated with RegTech Lab to develop a strategic roadmap for RegTech and SupTech implementation in Indonesia. Additionally, we provided technical assistance to OJK, and built and operated two SupTech solutions—a social media crawling tool and a chatbot—to bolster consumer protection in the Indonesian financial services sector.

Indonesia’s high internet penetration rate makes it an attractive market for digital financial services. The Financial Services Authority (OJK) regulates banking, capital markets, and non-bank financial sectors. OJK and regulated entities can benefit from powerful tools for oversight and compliance, with emerging technologies, such as AI and big data analytics.

In 2019, OJK launched a strategic roadmap for RegTech and SupTech implementation with support from the Gates Foundation’s RegTech Lab and MSC. The roadmap outlined OJK’s vision and priorities to accelerate the development of Regtech and Suptech ecosystem in Indonesia. Additionally, MSC also helped OJK build and test two SupTech solutions to strengthen consumer protection in the financial services sector. OJK oversees 2,500+ institutions. It has been witnessing a rise in consumer complaints, particularly related to digital financial services. MSC collaborated with OJK to build a tool to automate the analysis of consumer sentiments on social media and an omnichannel chatbot that consumers can use to make complaints to OJK. These initiatives are instrumental in raising OJK’s capacities to monitor and supervise the efficient delivery of digital financial services and are a key SupTech priority of the future.