Legal and Regulatory Challenges in the Era of Digital Economy

Abstract

The development of the digital economy has brought significant changes in the legal regulations governing digital transactions. Regulations in Indonesia, such as the Electronic Information and Transactions Law (UU ITE) and the Personal Data Protection Law (UU PDP), still face obstacles in implementing and harmonizing with global standards. Therefore, this study examines the legal challenges in the digital economy and solutions to improve legal certainty for digital business actors in Indonesia. This research uses a normative legal method with a statute, case, and conceptual approach. Analysis was conducted on relevant laws and case studies. The study results indicate that existing regulations are still reactive and not fully adaptive to technological developments, creating legal uncertainty that can hinder innovation and investment in the digital sector. In addition, low public awareness of regulations also contributes to legal problems in digital transactions. The conclusion of this study emphasizes the need for comprehensive legal reform to adjust digital economic regulations to the dynamics of technological developments. Harmonizing regulations, strengthening personal data protection, and increasing the capacity of law enforcement officers are important steps to create a safe and sustainable digital ecosystem. The regulations must be responsive to digital innovation and provide legal certainty for all stakeholders.