Online Dispute Resolution for Breach-of-Contract Disputes in Indonesia’s Digital Contract Era

Abstract

The legal problem addressed is the gap between Indonesia’s fragmented regulatory support for ODR and the growing need to resolve breach-of-contract disputes from digital contracts fairly. This article aims to evaluate the sufficiency of the existing framework (UU 30/1999, the ITE Law as amended, PP 80/2019, and PERMA 1/2016 and 3/2022) and to propose an ODR model suited to Indonesia’s digital-contract ecosystem. Using a normative juridical method—statute and conceptual approaches with doctrinal literature—the study interprets positive law and compares best practices to identify normative gaps. Findings show that while electronic evidence and online mediation are recognized, rules remain scattered, leaving uncertainty over accreditation of institutions, cybersecurity, procedural fairness, and enforcement of ODR outcomes. Integration with e-Court is partial, and ODR clauses in B2C settings risk unequal bargaining without transparency mandates. Applying Radbruch’s triad, the article recommends a unified regulation that establishes a national ODR platform, sets accreditation and ethics for neutrals, mandates security benchmarks and privacy-by-design, links ODR results to executable titles via streamlined registration, imposes timelines, and ensures access for consumers and MSMEs through fee caps. Such reforms would align justice, legal certainty, and utility, enabling ODR to deliver fair and effective resolution of digital-contract breaches in Indonesia.