| dc.description.abstract | Smart Contracts are a new thing in Indonesian business law. Menwhile, with the currenct
regulatorypolicies implementation, the use of smart contracs can leaad to a greater risk. The
problems of this research are, what about the legal risks caused by the used of smart
contracts on ethereum in Indonesia, what about the legal certainty for the use of smart
contarcts in Indonesia, and how about the develpment and legal renewal of smart contracts
use in Indonesia. This juridical normative research is conducted by collecting data from
literature studies and document studies. The resources of data in this research are primary,
seconndary, and tertiary data sources with qualitative data anakysis.
The results of the research are, (1) Legal risks for the use of smart contracts on
ethereum in Indonesia include: first, regulatory risk, due to the absence of regulatory system
in Indonesia that specifically regulates smart contract provisions. Second, contract risk, the
use of smart contracts in Indonesia is not fully in line with the legal terms of a contract, both
based on subjective and objective terms, and, Third, compliance risk, caused by the parties’
non-compliance with relavant laws and regulations, especially the Law Number 7 of 2011
concerning Currency and Article 1330 of the Civil Code regarding the legal requirements of
an agreement. (2) Smart contracts are an extension of electronic contracts. In the Indonesian
Legal system, the ITE Law, Government Regulations on Electronic System and Transactions
(PSTE) and Government Regulations on Trading through Electronic Systems (PMSE) have
provided basic arrangements that can be applied to smart contracts. Legal Certainty
regarding smart contracts if it is based on the principle off freedom of contract and the ITE
Law allows it to be implemented as long as it does not conflict with the principlesmof positive
law. (3) Development of national law and updating of regulations related to smart contracts
in Indonesia is an essential matter to pay attention to. With the rapid technology
development, it is crucial to have regulations as a form of legality, entities, and law
enforcement of virtual currency business transactions globally. Furthermore, with the
continuos update of the smart contract blockchain technology system network on ethereum
from proof-of-work to proof-of-stake, it is hoped that it will be able to overcome problems
such as scalability, efficiency, and speed thereby increasing the complexity of using smart
contracts on the ethereum platform | en_US |
