ALGORITHMIC GHARAR AND LEGAL CERTAINTY IN BLOCKCHAIN-BASED SMART CONTRACTS: A COMPARATIVE STUDY OF INDONESIAN LAW AND ISLAMIC BUSINESS LAW

Abstract

This article examines the legal certainty of blockchain-based smart contracts within Indonesia’s dual framework of positive law and Islamic business law. It asks how Indonesian contract and electronic-transaction rules accommodate automated agreements, how automation reshapes gharar, and what governance safeguards are needed. The study employs normative-comparative legal research, using legislation, regulatory instruments, Sharia standards, and scholarship selected for relevance and authority. Materials were analysed through doctrinal interpretation, cross-jurisdictional comparison, and thematic mapping of uncertainty. The findings indicate that Indonesian law may recognize smart contracts through contract and electronic-transaction rules, but the framework remains fragmented. Automation can reduce opportunistic non-performance while relocating uncertainty to code opacity, oracle reliability, tokenized asset rights, and irreversible execution. The article conceptualizes “algorithmic gharar” as an analytical lens, not a fiqh category, and proposes a Sharia-Compliant Smart Contract Governance model combining readable legal terms, code and Sharia audits, accountable data governance, limited reversibility, and coordinated oversight