Juridical Analysis of the Regulatory Framework for Digital Platforms in Indonesia: Legal Liability, Business Competition, and Sustainability

Abstract

The evolution of digital technology has introduced various platforms that are reforming social, economic, and
communication interactions in Indonesia. This transformation presents significant regulatory challenges,
particularly concerning personal data protection, platform accountability for illegal content, and the enforcement
of healthy business competition. Regulatory gaps risk impeding the protection of public rights while
simultaneously stifling innovation. This research employs a normative juridical approach, utilizing literature
review and legal document analysis techniques. The primary sources examined include the Electronic
Information and Transactions Law (UU ITE) and its amendments, Government Regulation No. 80 of 2019
concerning Trading through Electronic Systems (PMSE), and Law No. 27 of 2022 concerning Personal Data
Protection (PDP Law). The analysis focuses on norm harmonization, regulatory overlap, and the potential for
conflict among the relevant regulations governing digital platforms. The findings indicate that while Indonesia
possesses a basic regulatory framework for governing digital platform activities, the existing regulations remain
sectoral and fragmented. There is an observed overlap of authority, a lack of integrated governance mechanisms,
and loopholes in data protection and platform accountability mechanisms regarding illegal content. This
situation risks generating legal uncertainty for users, digital business actors, and regulators alike. The analysis
confirms the necessity of a regulatory reform based on a holistic approach that aligns aspects of data protection,
freedom of expression, platform responsibility, and competition policy. The principal recommendation is the
formulation of a specific, dedicated law or a comprehensive revision of the existing framework to establish legal
certainty, enhance platform accountability, and foster a fair and sustainable digital ecosystem.