OJK official says AI credit scores should not be the sole basis for lending decisions

Implications

Facts

Remarks: on 17 September 2026, Bayu Husodo, director of OJK's department for bank analysis, information and crisis management, said at an OJK Institute webinar that AI credit scores from private credit bureaus (LPIP) are not the sole basis for financial institutions' lending decisions. Source: Warta Ekonomi (17 September).

Example: he said a borrower with a low score due to late payment on some bills could still be considered for credit if they have a long relationship and a good repayment record. Same source.

Alternative data: LPIPs process public data, telecommunications records, e-commerce transactions and utility payments in addition to SLIK (OJK's credit information system), and he said manual processing is impossible given the population size. Same source.

Quantitative data: the remarks contained no figures such as the number of LPIPs or usage volumes.

Analysis

Indonesia is expanding private LPIPs and alternative data to complement the public bureau (SLIK), while the regulator wants explainability and human judgement to remain. In Malaysia, an incident at private credit bureau CTOS (23 September) also threatened to disrupt underwriting; how to manage dependence on external scores is a common issue across the region.

Counterpoints and uncertainties

These are remarks by an official at a webinar, not a circular or regulation. Whether and when they develop into binding rules is unknown.