Leges Privatae
Vol. 2 No. 2 (2026): AUGUST - JOY

THE DEVELOPMENT OF CONTRACT LAW IN THE DIGITAL ECONOMY: CHALLENGES AND OPPORTUNITIES UNDER INDONESIAN CIVIL LAW

Tiara Mustika (Selamat Sri University)



Article Info

Publish Date
07 Aug 2026

Abstract

The rapid expansion of Indonesia's digital economy, encompassing e-commerce, digital lending, and blockchain-based transacting, has generated an urgent need to assess whether Indonesian civil law, rooted in the century-old validity doctrine of Article 1320 of the Kitab Undang-Undang Hukum Perdata (KUHPerdata), remains adequate to govern contracts formed and performed through electronic and automated means. This article employs normative juridical research, combining statutory and conceptual approaches, to examine the legal validity and formation of clickwrap agreements, electronic signatures, and smart contracts under the KUHPerdata, the Electronic Information and Transactions Law, and Government Regulation No. 71 of 2019. The findings show that Article 1320's consensualist framework, reinforced by the functional-equivalence doctrine, accommodates most digital contracting forms, yet significant implementation gaps persist in the evidentiary treatment of uncertified electronic signatures, the accommodation of deterministic smart-contract performance within doctrine on defects of consent, the protection of consumers and micro, small, and medium enterprises against platform-drafted standard terms, the interaction between contractual and data-processing consent under the Personal Data Protection Law, and the enforcement of cross-border digital transactions. The article recommends graduated evidentiary reform for electronic signatures, sector-specific smart-contract guidance built on a hybrid-contract model, full operationalization of data-protection supervisory institutions, and closer alignment with UNCITRAL harmonizing instruments, concluding that Indonesia's task is one of regulatory completion rather than doctrinal replacement.

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Journal Info

Abbrev

JOY

Publisher

Subject

Law, Crime, Criminology & Criminal Justice

Description

This journal publishes original articles on current issues and international trends in the field of civil law, notary public, business law. The purpose of publishing this Journal is to provide a space to publish critical thinking on original research results, as well as conceptual ideas from ...