Reconstructing Legal Protection for MSMEs Utilizing Artificial Intelligence within Digital Economy Ecosystems

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Andri Herman Setiawan
Heriyanto Heriyanto
Karya Suhada

Abstract

The exponential integration of artificial intelligence within digital economies exacerbates normative asymmetry, rendering classical tort liability doctrines obsolete against algorithmic governance. This study interrogated the regulatory vacuum of Indonesian ethical soft law guidelines utilizing a prescriptive doctrinal methodology and comparative statutory approach against robust European frameworks. The analysis revealed that standard form contracts systematically weaponize contractual freedom, enabling tech monopolies to extract data yields while externalizing operational risks onto vulnerable micro, small, and medium enterprises. To rectify this systemic disparity without stifling exogenous innovation, this article constructs a comprehensive legal protection framework. By institutionalizing the doctrine of distributed accountability, this novel architecture mandates upstream algorithmic auditing and downstream safe harbor protections. Ultimately, embedding transparent compliance mechanisms directly into positive law ensures that digital transformation serves as an equitable engine for domestic economic empowerment rather than a conduit for unregulated monopolistic hegemony across the rapidly expanding global interconnected modern commercial ecosystems.

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How to Cite

Setiawan, Andri Herman, et al. “Reconstructing Legal Protection for MSMEs Utilizing Artificial Intelligence Within Digital Economy Ecosystems”. Siyasah Dusturiyah: State Law Review, vol. 2, no. 2, Sept. 2026, pp. 74-94, https://doi.org/10.65101/jptftc35.

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