Abstract
 
This study examined the new laws related to online business in 
Indonesia and the extent of freedom given to foreign investors. It also
discusses whether new regulations would be able to check illegal trade 
practices. Using a survey methodology the study identified a few issues 
related to e-commerce transaction in Indonesia. Findings reveal that the
Indonesian online business is growing but at the cost of compromises
with legal mechanisms. In conclusion, the current study has assessed
the need and importance of a legal mechanism to exist within the
domestic Indonesian law to prevent unethical practices in ecommerce
transactions.