Regulation Model Implementing Smart Contract (Terminable Contract) in Commercial Contracts in Indonesia

Abstract

This research aims to analyze the regulatory model for implementing smart contracts in commercial contracts in Indonesia and conduct comparative studies with other countries such as Singapore, England, the Netherlands, Switzerland, and Italy.Smart contracts and electronic instructions executed automatically in a blockchain network provide security, efficiency, and transparency advantages.This research uses a normative juridical approach with comparative legal methods.Data was collected through literature study and analysis of related legal documents.This research found that in Indonesia, regulations related to smart contracts are still in the development stage, and no specific regulations regulate their implementation in detail.However, the use of blockchain technology underlying smart contracts has begun to be recognized by the relevant authorities.The research results show that regulations in the countries compared are more advanced in accommodating the use of smart contracts.Singapore, for example, has developed various guidelines and policies supporting this technology's application in multiple sectors.The UK has also recognized the legal validity of smart contracts through reports and guidance issued by the Law Commission.In the Netherlands, traditional contract law principles are applied to smart contracts with some adjustments.Switzerland, known as the "Crypto Valley" of Zug, has adopted regulations that support blockchain technology innovation.Italy has also passed legislation providing smart contracts' legal definition and status.This research concludes that Indonesia needs to develop more comprehensive and specific regulations regarding innovative agreements to accommodate the development of this technology and provide legal certainty for parties involved in digital transactions following applicable legal principles.