Jambura Law Review
VOLUME 7 NO. 2 JULY 2025

Legal Challenges and Reform Proposals for Algorithmic Contracts under Indonesia’s Information and Electronic Transactions Law

Tejomurti, Kukuh (Unknown)
Sukarmi, Sukarmi (Unknown)
Mahmudy, Wayan Firdaus (Unknown)



Article Info

Publish Date
30 Jul 2025

Abstract

The emergence of algorithmic contracts, made or carried out by independent systems, creates difficult legal problems, especially in Indonesia's regulatory environment. This study examines whether Indonesia’s Information and Electronic Transactions Law is adequate to deal with new problems with algorithmic pricing, EAs, and automated contract creation. The article also examines the different types of algorithmic contracts and how black-box algorithms are used in dynamic pricing in business competition. It shows how unclear the law is about agency, consent, and accountability.  Using doctrinal legal research combined with conceptual, comparative, and interdisciplinary approaches, the study finds that Indonesia's Information and Electronic Transactions Law and Competition Law have become inadequate in responding to developments in AI-driven transactions. It suggests a legal framework that does not favour any one technology and recognises algorithms as helpful agents. It also calls for changes to the law to clarify how electronic agents can work together and negotiate. This method ensures that businesses are held accountable and that the law is clear in the age of self-driving digital contracts.

Copyrights © 2025






Journal Info

Abbrev

jalrev

Publisher

Subject

Law, Crime, Criminology & Criminal Justice

Description

The aims of this journal is to provide a venue for academicians, researchers and practitioners for publishing the original research articles or review articles. The scope of the articles published in this journal deal with a broad range of topics, including, Criminal Law; Civil Law; International ...