Legal Liability of AI-Based Digital Agreements in Indonesian Contract Law
Article Sidebar
Main Article Content
Abstract
The increasing use of Artificial Intelligence (AI) in digital transactions has transformed the mechanism of contract formation within contemporary commercial activities. AI systems are currently capable of drafting contractual clauses, processing transactional data, and generating automated agreements with minimal human intervention. Such developments raise legal issues concerning contractual validity, legal consent, and the allocation of liability when losses arise from AI-assisted contractual processes. This study examines the construction of legal liability in AI-based digital agreements within the Indonesian legal system. The research employed a normative juridical method using statutory, conceptual, comparative, and analytical approaches. The findings indicate that AI-based digital agreements remain subject to the fundamental principles of Indonesian contract law, particularly the validity requirements stipulated under Article 1320 of the Civil Code, the principle of freedom of contract, and good faith. Indonesian law nevertheless does not recognize Artificial Intelligence as an independent legal subject capable of bearing direct legal responsibility. Liability therefore remains attached to parties exercising control, supervision, operation, or economic benefit from the use of AI systems, including business actors, developers, and electronic system providers. The study further identifies a normative gap within Indonesian positive law concerning AI governance, transparency obligations, and allocation of liability in automated contractual relations. This condition potentially creates legal uncertainty and weakens legal protection for parties involved in AI-assisted transactions. The study offers an integrated liability framework capable of addressing legal uncertainty arising from AI-assisted contractual systems within Indonesian contract law.
Downloads
Article Details
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
Akpobome, O. (2024). The impact of emerging technologies on legal frameworks: A model for adaptive regulation. International Journal of Research Publication and Reviews, 5(10), 5046–5060.
Alhalalmeh, A.-H., & Al-Tarawneh, A. (2025). Artificial Intelligence and the Law: The Complexities of Technology and Legalities (pp. 641–649). https://doi.org/10.1007/978-3-031-74220-0_50
Amaliya, L., Dewi, S., Arafat, Z., Asyhadi, F., & Rosidawati, I. (2025). Marketplace Responsibilities and Sanctions in Cases of Consumer Losses (Futuristic Legal Perspective). Jurnal Hukum Dan Keadilan, 2(3), 1–12. https://doi.org/10.61942/jhk.v2i3.318
Ashley, K. D. (2017). Artificial Intelligence and Legal Analytics. Cambridge University Press. https://doi.org/10.1017/9781316761380
Bell, J. (2020). Machine learning: hands-on for developers and technical professionals. John Wiley & Sons.
Chambers, S. (2026). Illusive methodology: what is normative political theory? Critical Review of International Social and Political Philosophy, 29(3), 437–451. https://doi.org/10.1080/13698230.2025.2489248
Duivenvoorde, B. (2022). The Liability of Online Marketplaces under the Unfair Commercial Practices Directive, the E-commerce Directive and the Digital Services Act. Journal of European Consumer and Market Law, 43–52. http://www.kluwerlawonline.com/api/Product/CitationPDFURL?file=Journals%5CEuCML%5CEuCML2022009.pdf
Ebers, M. (2023). The European Commission’s Proposal for an Artificial Intelligence Act. In Research Handbook on EU Internet Law (pp. 271–292). Edward Elgar Publishing. https://doi.org/10.4337/9781803920887.00022
Fairgrieve, D., Busch, C., Büyüksagis, E., Garrett, Z. G., Straetmans, G., Karaiskos, A., Linley, R. D., Markou, C., Paterson, J. M., & Sharkey, C. M. (2024). Product Liability and Online Marketplaces: Comparison and Reform. International and Comparative Law Quarterly, 73(2), 477–504. https://doi.org/DOI: 10.1017/S0020589324000046
Flora, H. S., Ginanjar, Y., Ali Syaifudin, M., Rusmana, D., & Pratiwi Puwa, S. I. (2025). Enhancing Digital Legal Literacy: Guidance in Formulating Privacy Policies and Terms & Conditions for Micro and Small Enterprises (MSEs) in the Platform Economy Era. Jurnal Smart Hukum (JSH), 4(2), 168–184. https://doi.org/10.55299/jsh.v4i2.1705
Gaol, C. P. L., Nugroho, B. E., Sumarna, D., Hafiz, A., & Rahman, I. (2026). Analysis of The Legal Status of Gig Workers in Indonesia’s Digital Platforms: The Urgency of Sufficient Work Regulations as Social Protection. https://doi.org/https://doi.org/10.55299/jsh.v4i3.1794
Ismayilzada, T. (2024). Technical Overview of AI and Its Participation in the Contract Formation (pp. 115–185). https://doi.org/10.1007/978-3-031-61999-1_4
Jadwani, N., & Yadav, R. (2025). Judicial and Legislative Responses to Unequal Bargaining Power in Standard Form Contracts: A Comparative Study. International Journal of Law, Justice and Jurisprudence, 5, 673–2790.
Khan, A. A., Laghari, A. A., Li, P., Dootio, M. A., & Karim, S. (2023). The collaborative role of blockchain, artificial intelligence, and industrial internet of things in digitalization of small and medium-size enterprises. Scientific Reports, 13(1), 1656. https://doi.org/10.1038/s41598-023-28707-9
Klabbers, J. (2023). The concept of treaty in international law (Vol. 22). Brill.
Koos, S. (2021). Artifical intelligence as disruption factor in the civil law: Impact of the use of artifical intelligence in liability, contracting, competition law and consumer protection with particular reference to the german and indonesian legal situation. Yuridika, 36(1), 235.
Land, M. K., & Aronson, J. D. (2020). Human Rights and Technology: New Challenges for Justice and Accountability. Annual Review of Law and Social Science, 16(1), 223–240. https://doi.org/10.1146/annurev-lawsocsci-060220-081955
Lorenzoni, G., Alencar, P., Nascimento, N., & Cowan, D. (2021). Machine learning model development from a software engineering perspective: A systematic literature review. ArXiv Preprint ArXiv:2102.07574.
Martinelli, S. (2023). AI as a Tool to Manage Contracts Consequences and Challenges in Applying Legal Tech to Contracts Management. European Review of Private Law, 31(Issue 2/3), 411–426. https://doi.org/10.54648/ERPL2023016
Misbah, S., & Imtiyaz, I. (2024). AI in Contract Law: Navigating Legal Challenges and Opportunities in the Digital Era. LawFoyer Int’l J. Doctrinal Legal Rsch., 2, 264.
Munir, A. I. (2023). Intention to Create Legal Obligations: The Doctrine of Consent under the Law of Contract in Pakistan. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.4532632
Negara, T. A. S. (2023). Normative legal research in Indonesia: Its originis and approaches. Audito Comparative Law Journal (ACLJ), 4(1), 1–9.
Russell, S. J. (2010). Artificial intelligence a modern approach. Pearson Education, Inc.
Simamora, P. N. S., Ginting, G., Rantung, C. M. M., Kaunang, P. D., & Dewi, P. M. (2025). Legal Implications of Electronic Contracts in Civil Law: A Case Study in the Digital Era. Jurnal Smart Hukum (JSH), 3(3), 224–232. https://doi.org/10.55299/jsh.v3i3.1272
Siregar, D. (2025). Transforming Civil Procedural Law in the Digital Era: Evidence, Contracts, and Legal Certainty. JURNAL USM LAW REVIEW, 8(3), 2155–2177. https://doi.org/10.26623/julr.v8i3.12746
Widodo, A., Nurhaliza, W. O. S., & Akbar, M. R. (2025). Virtual criminal trials in Indonesia: Communication inequalities, power dynamics, and the challenges of justice. Social Sciences & Humanities Open, 12, 102272. https://doi.org/10.1016/j.ssaho.2025.102272
Zeberga, M. S., Haaskjold, H., & Hussein, B. (2024). Digital Technologies for Preventing, Mitigating, and Resolving Contractual Disagreements in the AEC Industry: A Systematic Literature Review. Journal of Construction Engineering and Management, 150(6). https://doi.org/10.1061/JCEMD4.COENG-14032