Title:
Legal Protection of International Business Transactions in the Era of Free Trade

Authors:
Prof. Dr. Iskandar, Muhammad Naufal, S.Ak., Indonesia

Abstract:

The era of free trade has significantly accelerated the cross-border flow of goods, services, capital, and technology. This dynamic simultaneously intensifies legal risks arising from differences in legal systems, asymmetries in bargaining power, and the limited institutional capacity of developing countries. This article analyzes the forms, mechanisms, and effectiveness of legal protection in international business transactions through a normative–empirical and comparative approach between Indonesia and global practices. The study employs a normative juridical method using statutory, conceptual, and comparative approaches, enriched by empirical data drawn from reports of international trade institutions and cross-border dispute resolution practices. The findings reveal that effective legal protection rests on the harmonization of contractual norms, the adoption of global legal instruments (CISG, UNIDROIT, UNCITRAL), prudent contract design, and credible international arbitration mechanisms. Indonesia continues to face challenges in legal harmonization, low levels of legal literacy among business actors, and a legal system reputation that has yet to become internationally competitive. This article recommends the adoption of global legal instruments, the strengthening of national judicial and arbitral institutions, and the empowerment of business actors as protective strategies within the free trade regime.

DOI: https://doi.org/10.51505/IJEBMR.2026.1022