NATIONAL JOURNAL of LAW

10.47313 STATE ADMINISTRATIVE LAW OF THE REPUBLIC OF INDONESIA: PROBLEMS AND SOLUTIONS

2026-08-18T16:12:11+07:00

State Administrative Law in Indonesia faces various fundamental weaknesses in its
implementation. The main obstacle is a slow, overlapping, and maladministration-
prone bureaucracy. The bureaucratic culture, which is still feudal, resistance to
change, and low orientation of public services further worsen the situation. The
complexity of regulations and weak law enforcement opens space for abuse of
authority and systemic corruption, collusion, and nepotism practices. Conflicts of
interest also weaken the legal function of the administration. Minimal public
participation has an impact on low accountability in the administration of
government. The role of the State Administrative Court as an administrative
supervisor is still limited due to jurisdictional constraints and institutional capacity.
Reform efforts such as the Job Creation Law and the implementation of the Online
Single Submission system have progressed. However, their implementation still
faces challenges, including legal uncertainty and protecting citizens' fundamental
rights. This research uses a normative approach emphasizing the study of written
legal norms and legal doctrines. The analysis is carried out in a deductive and
qualitative manner to explore a comprehensive understanding of legal principles
and the dynamics of their application. Comprehensive reform is needed through
simplifying regulations, strengthening public service culture, increasing
institutional capacity, and active community involvement. The ultimate goal is to
build a fair, transparent, and accountable state administration system supporting a
responsive government in the public interest.
Keywords: State Administration, bureaucracy, reform.

10.47313 THE VALIDITY AND LEGAL RECOGNITION OF CONTRACTS MADE BY ARTIFICIAL INTELLIGENCE UNDER INDONESIAN LAW

2026-08-18T16:28:06+07:00

In the era of globalization, the digital transformation era, the advancement of
Artificial Intelligence (AI) has enabled computer systems to perform cognitive
functions similar to human capabilities, including analyzing, drafting, and even
executing contracts autonomously. This technological shift has profoundly
influenced the paradigm of contract law in Indonesia, which traditionally adhered
to a classical normative approach and now faces the necessity to adapt to digital
innovations. This study examines the legal validity and recognition of contracts
created by or with the assistance of AI, particularly in reference to Articles 1320
and 1338 of the Indonesian Civil Code (KUHPerdata). Employing a normative
juridical method, the study analyzes primary and secondary legal sources and
compares selected international regulatory frameworks. The findings reveal that
while AI may enhance efficiency in contract formation, its non-human legal status
poses challenges regarding legal capacity, intent, and accountability. Thus, there is
a pressing need for specific regulations and reinforcement of legal principles, such
as legality and accountability, to ensure legal protection and certainty for all parties
involved in AI-assisted contracts under Indonesian law.
Keywords: contract validity, artificial intelligence, civil law, Indonesian legal
system, legality, accountability.

10.47313 Determination of Beneficial Ownership in A Partnership Firm from The Perspective of Joint and Several Liability of Partners

2026-08-18T16:56:37+07:00

This paper discusses about the legal implications of the obligation to determine the
beneficial owner in a partnership firm, within the context of the joint and several
liability of partners as regulated in Article 18 of the Indonesian Commercial Code
(KUHD). The study is motivated by increasing demands for business transparency
in the digital and globalization era, as well as the introduction of new regulations
through Presidential Regulation No. 13 of 2018 and Minister of Law and Human
Rights Regulation No. 15 of 2019. As a non-legal entity business form, a firm is
fundamentally based on the principle of joint and unlimited liability among its
partners. However, with the mandatory determination of a beneficial owner, there
arises a potential disharmony between private law, which governs joint and several
liability, and public law, which demands the identification of specific individuals
as the ultimate controllers. This study employs a normative juridical approach by
examining relevant laws and regulations. The findings indicate that the obligation
to identify a beneficial owner has significant legal implications, including clarifying
individual accountability within the firm, reinforcing the principle of piercing the
corporate veil, and potentially shifting the traditional principle of joint and several
liability. Therefore, regulatory harmonization is necessary to avoid normative
conflicts and ensure legal certainty in business practices, particularly for micro,
small, and medium enterprises (MSMEs) that commonly use the partnership form.
Keywords: partnership firm, beneficial owner, joint and several liability, corporate
law, transparency

10.47313 A Legal Analysis of the Effectiveness of Indonesian Business Competition Law in Addressing Monopolistic Practices

2026-08-18T21:53:20+07:00

As a significant developing nation in Southeast Asia with a vast population,
Indonesia's economic stability is paramount to public welfare. However, the
acceleration of globalization and technological advancements has intensified
market competition, often leading to unfair business practices. Objective: This legal
study examines the implementation and effectiveness of Law Number 5 of 1999
concerning the Prohibition of Monopolistic Practices and Unfair Business
Competition. Specifically, it seeks to delineate various forms of monopolies,
distinguishing between those that are detrimental to the public and those that may
contribute positively to national welfare (legal monopolies). Method: This research
employs a normative legal method with a statutory and conceptual approach.
Results: The findings indicate that the implementation of Law No. 5 of 1999
requires further strengthening through regulatory updates and more rigorous law
enforcement to preemptively address complex monopolistic trends. Furthermore,
the effectiveness of the law is heavily dependent on enhanced inter-institutional
coordination. Improving the supervisory climate is essential to ensuring legal
certainty and maintaining a healthy, competitive business environment in
Indonesia.
Keywords: Legal Certainty, Monopolistic Practices, Unfair Business
Competition, Law Enforcement, Indonesia.

10.47313 The Role And Benefits of Legal Anthropology in the National Development of the Indonesian Nation

2026-08-18T21:58:17+07:00

According to the Legal Anthropology approach, law is fundamentally rooted in
society. This approach utilizes a model that focuses on micro-processes. A
distinctive characteristic of Legal Anthropology is that various legal systems in
diverse societies across the world are studied by focusing on micro-processes that
empirically occur in people's lives. Therefore, a holistic method in examining legal
pluralism in society is highly instrumental in explaining legal mechanisms,
procedures, and institutions, as well as the operation of law and its relationship with
political, economic, religious, social organization, and ideological aspects. This
study discusses the role and benefits of legal anthropology in the development of
Indonesian society. The role of legal anthropology in the national development of
Indonesia is to explore existing norms and values within society. As the arena of
Legal Anthropology focuses on human beings and legal culture, social rules that
are not legal in nature are not the primary target of Legal Anthropology research.
Keywords: Legal Anthropology, National Development, Indonesian Nation

10.47313 Legal Protection for Consumers Regarding Personal Data in The Event of Illegal Investments to Create Legal Certainty

2026-08-18T22:13:57+07:00

The rapid development of information technology and digital finance has opened
up significant opportunities for the growth of digital-based investments. However,
this phenomenon has also led to a surge in illegal investment practices in Indonesia,
particularly by non-bank financial institutions operating without a license from the
Financial Services Authority. These illegal investments often exploit consumers'
personal data without proper consent, thereby threatening consumer rights and
security. This study aims to analyze the legal protection framework for consumers
in the context of investment, and to evaluate the effectiveness of legal safeguards
for personal data as a response to the growing trend of illegal investments, with the
goal of establishing legal certainty in Indonesia. This research employs a normative
juridical method with statutory, conceptual, case-based, and comparative
approaches. The data used are secondary data obtained through library research,
including legislation, legal doctrines, and other legal literature. The findings show
that although the Consumer Protection Act and the Financial Services Authority
Act regulate consumer protection, in practice, there remain significant legal
loopholes exploited by perpetrators of illegal investments. Weak oversight,
suboptimal law enforcement, and low public legal literacy are identified as major
challenges. This study offers theoretical contributions to the development of
consumer protection law and practical insights for policymakers in formulating
stronger regulations and supervision mechanisms to ensure the security of personal
data and legal certainty for consumers.
Keywords: legal protection, consumers, personal data, illegal investment, Financial
Services Authority.

10.47313 Protection of Indonesian Migrant Workers Abroad

2026-08-18T22:18:51+07:00

Every citizen has the right to get a decent job and livelihood for humanity. In order
to get a decent job and livelihood, everyone has the same opportunity without
discrimination to get a job. The work in question is the main activity carried out by
everyone with the aim of earning income to meet the needs in their lives to fulfill a
decent life for humanity. Everyone, as a worker, in addition to working in the
country, also has the right to work abroad. Indonesian workers who work outside
Indonesian territory are migrant workers. Various reasons for Indonesian migrant
workers to work abroad such as the job opportunity factor where the workforce
considers that in the country job opportunities are very small and finding a job is
very difficult compared to finding and working abroad, then related to labor wages,
workers think that the labor wage abroad is greater than the labor wage in the
country, Besides that, with regard to protection for workers, workers consider that
the protection of workers is better than the protection of workers working in the
country. Indonesian migrant workers are one of the largest foreign exchange
contributors for the Government of Indonesia, even though as one of the largest
foreign exchange contributors, there are many problems faced by Indonesian
migrant workers who work abroad. What will be studied in this study is the
mechanism for placing Indonesian migrant workers abroad, and what are the forms
of protection for Indonesian migrant workers abroad. This study uses a normative
juridical research method. The results of this study are expected to be used as a
reference both for regulators and for Indonesian migrant workers abroad.
Keywords: abroad, migrant workers, legal protection

10.47313 Imposing Civil Liability On Artificial Intelligence, Is It Possible?

2026-08-18T22:23:00+07:00

This research aims to examine and analyze whether Artificial Intelligence (AI) can
be used as a subject for civil litigation in court and what the concept of reforming
the subject of civil procedural law will be in the future. This type of research is legal
research with a legislative approach, a conceptual approach, and a comparative
legal approach with Russia. The results of this research conclude that: 1). Based on
fiction theory and organ theory, it is possible for AI to become an artificial legal
subject or a derivative legal subject like a legal entity. However, AI has limitations,
it cannot carry out its rights and obligations like a legal entity because it does not
have consciousness and does not have an autonomous will, so AI can't act as a
plaintiff in civil cases, because lawsuits are part of the rights; 2). Legal reform is
needed by expanding the scope of civil legal responsibility for AI if errors occur
and losses arise due to AI's actions. This autonomous imposition of legal
responsibility can be applied to Artificial General Intelligence and Super Artificial
Intelligence. Thus, legal responsibility is not only attached to the owner or producer
and user of AI but can also be imposed on AI itself.
Keywords: Legal Reform, Legal Subjects, Artificial Intelligence.