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ABSTRACT:

The background of the research is rooted in the pivotal role of Smart Transaction Systems in the digital transformation of Small and Medium-sized Enterprises (SMEs) within the batik industry in Semarang, Indonesia, amid the burgeoning Smart Economy era. The study aims to comprehensively explore the impact of national regulations, particularly the Information and Electronic Transactions Law (UU ITE), on the utilization of Smart Transaction Systems in electronic commerce by batik SMEs during the Digital Literacy Smart Economy era. To achieve its objectives, the research employs an analytical and evaluative approach, scrutinizing the legal framework, including UU ITE and related regulations, while also conducting an in-depth analysis of the implications and benefits for SMEs and consumers. The study’s findings and conclusions highlight the impact of UU ITE on the efficiency of transactions ensuring security and legal protection for both batik SMEs and consumers. The research emphasizes the need for regulations governing Smart Transaction Systems to build trust, enhance security and promote growth for SMEs. The study is unique due to its examination of how UU ITE and Smart Transaction Technologies work providing insights into the legal and technological complexities in today’s rapidly evolving digital landscape. The implications of the research, to improving frameworks that support SMEs digital initiatives fostering development and ensuring consumer safety in the era of the Smart Economy.

KEYWORDS:

ITE Law, Smart Transaction System, Smart Economy

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