When Breach Becomes Fraud: The Boundary Between Civil and Criminal Liability in Indonesia’s Digital Marketplace

Abstract

A failed online transaction may constitute a contractual breach, a civil wrong, or a criminal offence, but these classifications are not interchangeable. This article examines how Indonesian law should distinguish ordinary non-performance from intentional deception and coordinate remedies when both private and public legal interests are affected. Using doctrinal legal research, it analyses the Indonesian Civil Code, the Consumer Protection Law, the 2023 Criminal Code, the Electronic Information and Transactions framework as amended in 2024, and the criminal-law and procedural reforms effective in January 2026. The article argues that non-performance alone cannot establish fraud: the criminal characterization requires evidence of the statutory method of deception, unlawful intent, and the induced transfer or other conduct identified in the offence. Civil liability, by contrast, may arise from a violated obligation, an unlawful act causing loss, or defective consent without automatically proving a crime. Three hypothetical transaction patterns illustrate a practical classification test. The proposed approach preserves the principle of legality, protects defendants from the criminalization of commercial disputes, and allows victims to seek compensation and criminal accountability when each pathway is independently justified.