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ARTICLE · 21 DECEMBER 2022

Electronic Contract Best Practices: Indonesia

This note discusses issues on electronic contract formation in Indonesia and proving click wrap agreements.

United KingdomCorporate/Commercial Law

This note discusses issues on electronic contract formation in Indonesia and proving click wrap agreements.

Contract Formation under the Indonesian Civil Code

At the outset, it is necessary to understand the basic requirements of contract formation in Indonesia.

The Civil Code in Article 1320 stipulates in the general term that "there must be consent of the individuals who are bound thereby". The Indonesian Civil Code does not specifically stipulate paper documents or wet ink signatures. But this is what the Indonesian courts have come to expect in order to prove the existence of a contract.

The conventional view of a valid contract is therefore that captured in a formal document with both parties appending their wet ink signature onto a paper document. This view is not likely to change in the near future. So, it will not be possible to apply common law concepts of contract formation such as contract by conduct or contract by correspondence - where the act of

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