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Record STMT-WC08183Aspirational

The urgency of robot trading regulation in Indonesia: Between innovation and investor protection

Report State lawSouth-eastern Asia · IDin forceNot AI-specific

This academic journal article examines the urgency of implementing specific legal regulations on robot trading in Indonesia to ensure investor protection and maintain market stability. It identifies legal gaps that have allowed unlicensed and fraudulent robot trading platforms to proliferate, and proposes a comprehensive regulatory framework involving tiered licensing, technical standards, transparency, and industry collaboration.

Summary and content fields are drawn from the document text and are pending editorial review.

Who issued it

Udayana UniversityAcademic · ID
Publisher
Legal forceAspirational
Under whose authorityState law
Judged fromfull text

Who it governs

National governmentRegulatorsCompaniesResearchers and academics

Policymakers, financial regulators, and researchers seeking guidance on regulating automated financial trading systems in emerging markets.

Sectors
Finance and insurance · robot trading and capital marketsResearch and science · legal research

What the document contains

What's covered

The paper addresses the legal vacuum surrounding automated trading systems in Indonesia, the history and risks of fraudulent robot trading schemes, and the structural design of a regulatory framework that balances innovation with investor protection and market stability.

What's missing

Specific draft legislative text or detailed technical code requirements for trading algorithms.

Key takeaways
  • Indonesia lacks specific and comprehensive regulations governing robot trading, creating legal gaps exploited by fraudulent schemes.
  • Unregulated automated trading systems pose systemic risks to market stability, including potential flash crashes and extreme volatility.
  • A balanced regulatory framework requires clear legal definitions, tiered licensing, and rigorous technical standards for algorithms.
  • Investor protection must be enforced through mandatory risk disclosures, truth-in-advertising rules, and enhanced public financial literacy.
  • Collaboration between regulators, industry players, and international bodies is essential for effective oversight and cross-border enforcement.
Outline
· 1. Introduction
· 1.2 Problem Formulation
· 1.3 Objectives of Writing
· 2. Research Methodology
· 3. Results and Discussion
· 3.1 The Urgency of the specific implementation regulations on robot trading in Indonesia to ensure investor protection and maintain market stability
· 3.2 The most suitable regulatory framework to balance the advancement of robot trading innovation with the need for a safe, transparent, and fair trading ecosystem in Indonesia
· 4. Conclusion
Issued22 July 2025
Length6,417 words · 7 pages
FormatNot recorded
Scopenational

How it scores

Pending review

Each score is backed by a quote verified against the document text. Editorial review has not yet confirmed them.

Fairness

4/5

Non-discrimination and equitable treatment

By embedding principles of safety, transparency, and fairness into all stages of robot trading activity, Indonesia can create a resilient and trustworthy market environment.

Abstract

screening score · 2026-10-24

Human Dignity

0/5

Respect for the inherent worth of persons

screening score · 2026-10-24

Privacy

0/5

Protection of personal data and private life

screening score · 2026-10-24

Enforcement

4/5

Consequences and compliance mechanisms with real force

Effective enforcement is essential, supported by modern regulatory technology and strong sanctions to deter misconduct.

Abstract

screening score · 2026-10-24

Topics

robot_trading investor_protection financial_regulation market_stability automated_trading_systems