Indonesia e-Commerce – Contracting on the Internet

By Fahrul S Yusuf and Mohammad K Bratawijaya

It is possible in Indonesia for parties to agree and enter into a digital agreement. In principle, a digital agreement shall be deemed valid if:

• mutual consent of the parties is accomplished;
• it is concluded by a competent subject of the law or represented according to the prevailing laws and regulations;
• it is executed for a certain matter; and
• the object of the transaction is not prohibited by law, morality or public order.

A digital agreement shall at least contain information on:

• the identity of the parties;
• the object of the agreement and its specifications;
• electronic transaction requirements;
• price and fees;
• the procedure to terminate the agreement;
• a provision that grants a right to the damaged party to receive indemnification for any hidden defect;
• choice of law to settle the electronic transaction.

Prevailing Indonesian laws and regulations do not specifically address \"click wrap” contracts are whether they are enforceable in Indonesia. Since \"click wrap” contracts are prepared in digital format, such contracts should at least contain the information in the above paragraph to be enforceable. As long as click wrap” contracts contain this minimum information, they would be enforceable in Indonesia.

Parties to a digital agreement can use a digital signature. The Indonesian government acknowledges that a digital signature is equally valid as a physical signature. A digital signature shall also be treated as having equal legal force as a physical signature.

Reproduced with permission of Law Business Research Ltd. This article was first published in Lexology Getting the Deal Through - e-Commerce 2020 (Published: August 2019). For further information, please visit www.gettingthedealthrough.com.

This publication is intended for informational purposes only and does not constitute legal advice. Any reliance on the material contained herein is at the user\'s own risk. You should contact a lawyer in your jurisdiction if you require legal advice. All SSEK publications are copyrighted and may not be reproduced without the express written consent of SSEK.