Supreme Court Upholds Validity of Electronic Signatures and Digital Contracts in Commercial Disputes

In a landmark commercial ruling, the Supreme Court of the Republic of Indonesia (Mahkamah Agung) confirmed that contracts executed using certified electronic signature providers (Penyelenggara Sertifikasi Elektronik / PSrE) possess full probative evidentiary force equivalent to an authentic notarial deed or underhanded deed (akta di bawah tangan). Highlights: 1. **Compliance with Article 1320 KUHPerdata:** Digital contracts satisfy the mandatory element of 'sepakat mereka yang mengikatkan dirinya' (mutual consent) provided authentication logs and cryptographic hashes are preserved. 2. **Bilingual Requirements under Law No. 24/2009:** Commercial contracts involving foreign entities or individuals must continue to maintain a dual-language format (Indonesian and English/foreign language). The Supreme Court reiterated that an Indonesian language version is mandatory to prevent nullification risks. 3. **Arbitration Clauses:** Standard arbitration clauses designating BANI (Badan Arbitrase Nasional Indonesia) or SIAC are valid in digital contracts if signed electronically by authorized corporate directors.