AI-Based Smart Contracts in the Indonesian Civil Law System: Legal Certainty and Regulatory Challenges

Abstract

This study analyzes the vagueness of norms governing AI-based smart contracts within the Indonesian civil law system, particularly concerning contractual validity, legal liability, and dispute resolution. The emergence of blockchain and Artificial Intelligence has introduced autonomous and adaptive contractual mechanisms that challenge traditional doctrines under the Civil Code, especially the principle of consensualism and fault-based liability. The primary legal issue lies in whether AI-driven smart contracts satisfy the validity requirements under Article 1320 of the Indonesian Civil Code, how liability should be attributed in automated execution, and how disputes involving code-based contracts should be resolved within existing procedural frameworks. This research employs a normative juridical method using statute, conceptual, and case approaches, analyzing relevant regulations such as the Civil Code, the Electronic Information and Transactions Law, the Personal Data Protection Law, and the Consumer Protection Law. The findings reveal that Indonesian positive law has not adequately accommodated the autonomous and adaptive nature of AI-based smart contracts, resulting in legal uncertainty in interpreting consent, determining liability, and assessing digital evidence. This study proposes a prescriptive legal framework through the recognition of digital consent as valid agreement, the application of strict liability and role-based responsibility, and the development of procedural rules recognizing algorithmic code and blockchain records as legal evidence to ensure legal certainty and protection in digital transactions