Building a Sustainable Digital Economy Legal Framework: Challenge Analysis and Implementation Strategy

Abstract

The rapid development of digital technology has significantly transformed the economic landscape in Indonesia,
creating both opportunities and challenges for the legal framework governing digital economic activities. This study
aims to analyze the challenges and strategies for implementing a sustainable legal framework for the digital economy
in Indonesia. Using a qualitative approach with secondary data, the research examines regulatory gaps, consumer
protection, data privacy, cybersecurity, fair competition, and digital labor issues. The findings indicate that the
fast-paced evolution of digital platforms often outpaces the capacity of existing laws, leading to legal uncertainty for
businesses and users. Furthermore, the absence of comprehensive regulations may result in consumer vulnerability,
data misuse, market monopolization, and exploitation of gig economy workers. To address these challenges, the
study suggests strategies such as developing adaptive and responsive regulations, strengthening data governance
and consumer protection, enhancing labor rights in the digital sector, improving institutional capacity, and promoting
digital literacy among the public. By adopting these measures, Indonesia can build a sustainable digital economic
ecosystem that ensures fairness, security, innovation, and long-term socio-economic benefits. The research
emphasizes the importance of a holistic, inclusive, and forward-looking legal framework to support the growth and
sustainability of the digital economy