<![CDATA[Free trade expands market opportunities for local businesses, but at the same time increases the inequality of competitive capacity between domestic businesses and business actors with stronger resources, technology, and market networks. This study aims to analyze the adequacy of Indonesia's legal framework in protecting local businesses in the midst of free trade competition and formulate a model of strengthening law based on competitive equality. The research uses normative legal methods with legislative, conceptual, analytical, and comparative approaches, through the analysis of primary, secondary, and relevant international trade instruments. The results of the study show that local business protection is available through the MSME regime, competition law, and national economic policies, but is still fragmented and has not fully responded to structural inequality and digital market transformation. The study found that repressive protection alone is inadequate to deal with data mastery, platform dependence, bargaining power inequality, and market access barriers. The research recommends the implementation of integrated legal protection based on competitive equality through strengthening business capacity, protecting market access, and institutional capacity for law enforcement. This model allows Indonesia to maintain trade openness while fulfilling the mandate of economic democracy and creating fairer competition for local businesses. ]]>
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