AI-Sharia Risk Assessment Framework for Geopolitical Disruption and NPF Mitigation in Indonesian Islamic Banking

Abstrak

Introduction/Main Objectives: This study examines how geopolitical risks affect the quality of financing in Indonesia’s Islamic banking sector and proposes an Artificial Intelligence (AI)-based, Sharia-compliant risk mitigation model. Research Methods: An exploratory qualitative approach using framework analysis was applied to OJK Islamic banking statistics for December 2024–March 2026, regulatory documents, and Scopus- and SINTA-indexed literature. Finding/Results: Geopolitical risks may affect the quality of financing through supply chain disruptions, exchange rate pressures, and declining aggregate demand. AI adoption remains limited by governance, algorithmic transparency, data quality, regulation, and human resource readiness. The study proposes an AI-Sharia model based on data intelligence, a Sharia compliance filter, and human oversight. Conclusion: AI can support early detection of financing risk while maintaining transparency, fairness, and Sharia compliance, although the proposed model still requires empirical validation.