The Impact of Digital Technology Development on Business Law Regulations in Indonesia, Especially Related to Electronic Transactions and Consumer Data Protection

Abstract

The rapid advancement of digital technology has profoundly transformed business operations, particularly through the expansion and growing complexity of electronic transactions. In Indonesia, these developments present significant challenges for business law, especially in ensuring transaction security, legal validity, and the safeguarding of consumer data. This research investigates how digital innovation influences Indonesia’s business legal framework, specifically focusing on electronic transactions, legal obstacles stemming from digital fraud, and consumer data protection. Adopting a descriptive quantitative methodology, the research incorporates trend analysis of secondary data and simulations of electronic transaction patterns from 2020 to 2024. The findings reveal that electronic transactions have grown at an average annual rate of 25%, reflecting a substantial surge in digital commerce. However, this growth has been accompanied by an escalation in digital fraud incidents, which undermine consumer confidence and pose significant security risks. Further analysis highlights critical gaps in the current regulatory framework, emphasizing the urgent need for adaptable and proactive legal reforms. Strengthening data protection measures and enhancing dispute resolution mechanisms are essential to ensuring legal certainty and fostering Indonesia’s secure, sustainable digital economy.