Imagine an algorithm deciding you are ineligible for a loan. No explanation provided. No procedure to appeal. This is the looming risk we face when Artificial Intelligence (AI) evolves without an ethical compass.

From chatbots mimicking the voices of public figures to algorithmic credit scoring and recruitment systems, AI is permeating the nuances of our daily lives at an extraordinary pace. Amidst this rapid influx, a critical question arises: where does ethics stand?

The Global Landscape vs. The Indonesian Context

In regions like the European Union, the United States, and Singapore, the discourse on AI ethics has already produced relatively established frameworks. Benchmarks such as the EU AI Act, OECD AI Principles, and the NIST AI Risk Management Framework serve as foundational pillars, emphasising fairness, transparency, accountability, and explainability.

In contrast, the conversation in Indonesia is still in its infancy. While there are emerging initiatives, such as the Financial Services Authority’s (OJK) ethical guidelines for fintech and banking, and the Ministry of Communication and Digital Affairs’ (Komdigi) circular on ethical values, the landscape remains fragmented. ⁸Without binding regulations and integrated coordination, AI ethics in Indonesia risks becoming a mere slogan rather than a functioning support system.

Why It Matters

The absence of an AI ethical framework is not just a legal vacuum; it is a lack of a moral guide to protect human interests. This gap has the potential to erode public trust, trigger economic losses, and widen social inequality. Whether it is the use of AI in public services without clear accountability or automated loan denials without fair recourse, the stakes are high.

Ethical governance for AI has become an urgent necessity. Put simply: ethics must guide AI, while the law follows closely behind.

A Collective Responsibility

AI ethics is not a purely technical matter reserved for machine learning experts, deep learning specialists, or AI engineers. It is a collective endeavour spanning sectors and generations, touching upon law, human rights, economics, education, and national values. Consequently, we cannot leave AI governance entirely to the market, private corporations, or foreign technology providers. We need an approach rooted in local wisdom, national values, and sovereignty.

A Roadmap for Action

To tackle these challenges, I propose three strategic steps:

1. Establish a National Forum for AI Ethical Governance: The government should convene a multi-stakeholder body involving regulators, academics, industry practitioners, civil society, and the tech community. This forum would be responsible for drafting ethical principles, implementation standards, and oversight mechanisms. Principles such as non-discrimination, data protection, and social justice must be at the heart of every AI adoption.


2. Prioritise Digital Ethics Education: We must instil ethical awareness early on, not just for students, but for developers and policymakers as well. True AI literacy goes beyond knowing how to use technology; it is about understanding how to use it rightly, fairly, and humanely.


3. Mandate AI Impact Assessments: Any entity developing or deploying AI, particularly in the public and financial sectors, should be required to conduct an AI Impact Assessment. Similar to an environmental impact study, this mechanism would focus on evaluating algorithmic risks to individual rights and social structures.

The Path Forward

Indonesia has a significant opportunity to become a pioneer in ethics-based AI governance in Southeast Asia, provided we move beyond being passive consumers of foreign technology. The key lies in a contextual approach that respects our national principles (Pancasila), social justice, and societal diversity.

In the digital age, ethics is not an "optional extra." It is the very foundation of trust and sustainable innovation. We must build this foundation today, or we will pay a heavy price tomorrow through a crisis of confidence, social loss, and the dominance of foreign technology. It is time to place ethics at the centre of every AI policy, ensuring it remains the compass that keeps AI aligned with humanity.

By Goutama Bachtiar, MAIB, MBA, FRSA, FFIN, FPT, MAICD, TAISE

Keywords: AI Ethics, AI Governance, GRC

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