arXiv · 2610.24706
Enabling the 1 1 Promise AI Enabled Fairness for Indonesia Retail IPO Allocation
Abstract
Indonesia OJK Circular, effective November 2025, requires that half of every IPO pooled allocation go to retail investors. Uniquely amongst major capital markets, the regulation places all non-institutional participants, regardless of wealth, into a single competing pool rather than separating them by monetary thresholds. The rule is structurally sound; however, enforcement and measurement of effectiveness require methods beyond rule-based detection alone. Well-resourced participants operating within the retail pool can distribute bids across networks of synthetic retail accounts, each individually compliant, allowing them to capture the retail quota without triggering standard concentration heuristics. Without a mechanism to detect such networks before allotment closes, the statutory guarantee of equal access becomes procedurally hollow: the quota is formally reserved for retail households while the economic benefit flows elsewhere. We present a framework for identifying such nominee networks using eleven statutory fields already collected by Indonesia e-IPO infrastructure, requiring no new surveillance powers or personal data. The paper shows that when a Global South regulator prioritizes genuine inclusion over administrative convenience, algorithmic enforcement becomes both feasible and necessary.
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Anchal Gupta, Gleb Papyshev, James T Kwok. 2026-10-17. Enabling the 1 1 Promise AI Enabled Fairness for Indonesia Retail IPO Allocation. https://doi.org/10.1609/aies.v9i2.43214
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