Author(s): Yoseph Reynaldo Gloria Passar and Desak Putu Dewi Kasih

Abstract: The purpose of this research is to examine the urgency of implementing specific regulations on robot trading in Indonesia to ensure investor protection and maintain market stability, as well as to identify 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. This study employs a normative legal research method with a statutory approach. To address these challenges, Indonesia requires a regulatory framework that balances innovation with protection. Such a framework should begin with a clear legal definition of robot trading, establish a tiered licensing and registration system, and set rigorous technical standards for algorithm testing, transparency, and operational safeguards. Investor protection must be prioritized through mandatory risk disclosures, truth-in-advertising rules, and public education programs that improve financial and technological literacy. The inclusion of regulatory sandboxes and industry collaboration will ensure that innovation is nurtured rather than stifled, while international cooperation can close cross-border enforcement gaps. Effective enforcement is essential, supported by modern regulatory technology and strong sanctions to deter misconduct. By embedding principles of safety, transparency, and fairness into all stages of robot trading activity, Indonesia can create a resilient and trustworthy market environment. This approach will not only protect current investors but also position the country as a competitive player in the global fintech landscape, ensuring that technological progress supports sustainable and equitable financial growth.

DOI: 10.22271/civillaw.2025.v5.i2b.154

Pages: 144-150 | Views: 190 | Downloads: 123

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