Legal Enforceability of Smart Contracts in Indonesia: Analyzing Gaps in Electronic Transaction Law

Abstract

This article examines the legal enforceability of smart contracts in Indonesia by addressing two main questions: how effective Indonesia’s electronic transaction law is in supporting smart contract enforceability, and why specific regulation is urgent for strengthening legal certainty in digital transactions. The study plays a normative role by analyzing the position of smart contracts within Indonesian contract law, the Electronic Information and Transactions Law, and Government Regulation Number 71 of 2019. The analysis shows that existing regulations provide a general legal basis for recognizing electronic contracts, electronic documents, electronic signatures, and electronic transaction systems. However, they remain insufficient in addressing the distinctive features of smart contracts, including coded terms, automatic execution, blockchain immutability, pseudonymous parties, coding errors, liability, and remedies. The article discusses these issues through statutory and conceptual analysis. It finds that Indonesia needs clearer, technology-neutral, and smart contract-responsive regulation to ensure enforceability, protect contracting parties, and support legal certainty in the digital transaction ecosystem.