This article examines the institutional feasibility of adapting the European Union Artificial Intelligence Act’s risk-based regulatory model to Indonesia’s decentralized administrative system. Employing doctrinal legal analysis, comparative institutional assessment, and governance theory, the study identifies structural asymmetries in legal harmonization, institutional capacity, and risk classification frameworks. The findings reveal significant governance gaps, including normative fragmentation, institutional asymmetry, and the absence of a formal risk taxonomy. To address these challenges, the study proposes the Digital Investment Governance (DIG) Framework, integrating multi-level coordination, regulatory clarity, and investor-sensitive compliance mechanisms. The research contributes to global AI governance scholarship by offering a contextualized adaptation model for decentralized states undergoing digital transformation.
Kaplale et al. (Sun,) studied this question.