LEGAL PROTECTION FOR LOSSES DUE TO BUGS IN SMART CONTRACTS IN TRADE PRACTICES THROUGH ELECTRONIC SYSTEMS

The rapid advancement of technology has significantly impacted various aspects of society, particularly in the field of trade conducted through electronic systems. One important innovation emerging from this development is the smart contract. However, alongside these advancements, new challenges have arisen, especially technical vulnerabilities that can occur at any time. Although smart contracts offer increased efficiency and security, they remain inherently susceptible to bugs. Therefore, this study aims to analyze the potential losses caused by bugs in smart contracts within electronic trading systems, as well as to examine how existing legal instruments protect parties harmed by such bugs. This research employs a normative legal methodology, utilizing statutory and conceptual approaches, and relies on secondary data obtained through a literature review. The findings indicate that bugs in smart contracts used in electronic trading can result in both material and immaterial losses for users. Furthermore, legal protection to mitigate such losses is supported by two main pillars: preventive protection and repressive protection, both of which are guaranteed under Indonesian positive law. Thus, the findings show that although Indonesia does not yet have specific legislation explicitly regulating smart contracts, legal protection for aggrieved parties is still available through the existing legal framework, including the Electronic Information and Transactions Law (UU ITE), the Consumer Protection Law (UU PK), Government Regulation on Electronic Systems and Transactions (PP PSTE), and Government Regulation on Trading Through Electronic Systems (PP PMSE) which collectively cover protection aspects in technology-based trade transactions.