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Abstract
The development of digital technology, especially blockchain, has given birth to a new innovation in the world of contract law known as smart contracts. These contracts work automatically through programming code, so their execution no longer relies on human intervention. This provides various advantages such as a faster, more transparent process, and minimal risk of breach of agreement. However, the emergence of smart contracts also raises an important question: whether this form of agreement is in accordance with the applicable legal provisions in Indonesia, especially regarding the requirements for the validity of agreements and the recognition of electronic agreements. This study shows that basically smart contracts can be considered valid as long as the parties really understand and agree on the mechanisms embedded in the system. This means that even if the agreement is done digitally and automatically, the important elements of the agreement can still be met. On the other hand, there are still several challenges that need to be considered, such as difficulties in proving in the event of a dispute, limitations in making contract changes, and the possibility of inequality in technology understanding between parties. Compared to countries such as the United States, which are already more adaptive, Indonesia still needs more specific arrangements so that the use of smart contracts can provide legal certainty as well as adequate protection for the parties.
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References
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References
Adlini, M. N., Dinda, A. H., Yulinda, S., Chotimah, O., & Merliyana, S. J. (2022). Qualitative research methods of literature study. Journal of Edumaspul, 6(1), 974–980.
Arvisya, W. C., & Son, M. A. P. (2025). The binding power of electronic agreements and their implications for the legal certainty of digital transactions in Indonesia. Journal of Academic Media (JMA), 3(11).
Budiyanto, A. E. (2023). Juridical analysis of the use of smart contracts in the perspective of the fundamental freedom of contract. Journal of Science Student Research, 1(1), 815–827.
Hans, S. W. P., Fakhriah, S., & Syamsul, S. (2025). Juridical analysis of the validity of smart contracts in the perspective of Indonesian civil law. Journal of Legal Certainty and Justice, 7(1), 46.
Hutapea, K. W. H., & Sulistiyono, A. (2024). The validity of smart contracts with blockchain technology according to the Civil Code. Alliance: Journal of Law, Education and Social Humanities, 1(3), 87–88.
Corinth, W. H. H., & Adi, S. (2024). The validity of smart contracts with blockchain technology according to the Civil Code. Alliance: Journal of Law, Education and Social Humanities, 1(3), 87.
Kusuma, A. P. H., & Jasmine, M. A. (2025). The validity of digital signatures in smart contracts for the buying and selling of digital agricultural products. Acten Journal Law Review, 2(1), 100.
Wolf, R. M. (2025). Legal fiction in electronic transactions: The problem of agreement validity in the era of smart contracts (p. 105).
Mazalio, G. I. (2023). Problems of the implementation of smart contracts on the role and function of notaries in Indonesia. Indonesian Multidisciplinary Journal, 2(3), 634.
Muslim, M., Handayani, P., & Hadiyanto, A. (2025). An effective and secure legal framework for agreements in the era of business globalization. USM Law Review, 8(2), 1032–1044.
Nurfadillah, M. (2025). Contract law in the digital era: Adaptation of contract making techniques in online transactions. Nusantara Scientific Journal, 2(1), 185–193.
Putra, I. P. G. A. W., & Sawitri, D. A. D. (2024). The legality of smart contracts in electronic transactions in e-commerce according to the perspective of civil law in Indonesia. Journal of Kertha Semaya, 12(12), 3183.
Ridwan, A., & Triadi, I. (2025). Normative justification through analogy fills the legal void of the legal requirements of smart contract agreements. Netizens: Journal of Society and Business, 2(1), 31–47.
Rosyid, M. (2020). Dynamics of Seventh-day Adventist Christians: A case study in Kudus, Central Java. Scientific Journal of Sociology of Religion (JISA), 3(1), 2.
Rukman, J. A., Rahardiansah, T., & Notoprayitno, M. I. (2025). The legality and use of blockchain technology for smart contracts in business agreements in Indonesia. Riggs: Journal of Artificial Intelligence and Digital Business, 4(2), 6914–6925.
Sitorus, R. L. O., Nilakandi, R. P., Khoirunnisa, A. S. A., & Najib, R. K. (2025). Juridical analysis of the validity of smart contracts as a form of electronic agreement in Indonesia. Student Research Scientific Journal, 3(6), 394–406.
Tanaiyo, S., Puluhulawa, M. R., & Achir, N. (2024). The impact of physical violence by teachers on children in the school environment. Doctrine: World Journal of Law and Politics, 2(2), 14.
Umar, M. (2025). Implementation of smart contracts in digital business: A civil law perspective and the protection of parties involved. Hypothesis, 19(1), 26.
Wahyuni, H. A., Naili, Y. T., & Ruhtiani, M. (2023). The use of smart contracts in e-commerce transactions in the perspective of civil law in Indonesia. Journal of Law In Concreto, 2(1), 1–11.
Warianto, W., Amboro, F. Y. P., & Sudirman, L. (2024). Pragmatism of smart contracts in legal perspective: A comparative analysis between Indonesia and the United States. Journal of Mediasas: Media of Sharia and Ahwal Al-Syakhsiyyah, 7(1), 13–38