You use ChatGPT to draft a service agreement with a client in Jakarta. The contract looks clean. You sign. Three months later, a dispute erupts—your client claims you breached an indemnity clause you didn't fully understand, and you're on the hook for ₹50L in damages. You read the contract again. The indemnification language was so vague it meant almost nothing, but Indonesian courts interpreted it against you anyway. This is not hypothetical. Indonesian courts apply a principle called contra proferentem —ambiguity in a contract is interpreted against the party that drafted it. If an LLM drafts your contract and leaves gaps, you lose. Worse, most LLMs have never trained on Indonesian contract law, so they default to US or UK precedent. This article shows five specific clause patterns LLMs botch, with real redlines from Indonesian counsel and templates you can use safely. 1. Indemnification: LLMs Leave the Scope Impossibly Wide The ChatGPT default looks like this: Vendor shall indemnify and hold harmless Client from any and all claims, damages, and liabilities arising from Vendor's performance of Services. In Indonesian courts, "arising from" is a trap. It can mean: Caused by Vendor's negligence Related in any way to Services Triggered during the term of the contract Claims where Vendor's work is mentioned as a factor A Jakarta-based digital agency we spoke with drafted an indemnity clause this way. Six months later, their client was sued by a competitor for unfair competition (unrelated to the agency's work). The client's legal team cited the broad indemnity, and the agency settled for ₹25L to avoid court. What Indonesian counsel says: "Indemnification must be tied to actual fault, not mere causation. Use 'arising out of' only if you mean negligence or breach by Vendor. If you mean indirect damages, say it explicitly. Indonesian courts will not guess your intent." Safe template: Vendor shall indemnify Client against third-party claims to the extent such claims arise from Vendor's gross negligence, willful misconduct, or material breach of this Agreement. Vendor's obligation shall not apply to claims arising from Client's modification of Deliverables, Client's use of Deliverables in violation of law, or claims Client fails to notify Vendor of within 30 days of discovery. This ties indemnity to actual fault , not correlation. It also caps notice time—if Client waits three years to claim indemnity, Vendor is protected. Indonesian courts respect clear causation over vague liability. 2. Governing Law and Jurisdiction: LLMs Pick US Law for SE Asia Contracts ChatGPT's default: "This Agreement shall be governed by the laws of the State of New York and the courts of New York shall have exclusive jurisdiction." You are in Jakarta. Your client is in Jakarta. Your governing law is New York. Do you see the problem? When a dispute arises, you cannot enforce a New York judgment in Indonesia without a bilateral treaty (the US and Indonesia do not have a comprehensive enforcement treaty). You would need to file a separate suit in Indonesian court, effectively litigating twice. Costs multiply. Time stretches to 3–4 years. An Indonesian e-commerce startup hired a developer (Singapore-based) through an agency (Jakarta-based). The contract said "governed by Singapore law, jurisdiction in Singapore courts." When the developer failed to deliver, the startup had to sue in Singapore—₹15L in legal fees before the case even reached trial. They settled for a fraction of damages just to stop bleeding money. What Indonesian counsel says: "If you are working with Indonesian clients, use Indonesian law and Indonesian courts. Law No. 30 of 1999 requires disputes involving Indonesian parties to be heard in Indonesia unless both parties explicitly consent to arbitration. If you write New York law, Indonesian courts will ignore it and apply Indonesian law anyway." Safe template: This Agreement shall be governed by and construed in accordance with the laws of the Republic of Indonesia, without regard to conflicts of law principles. Any dispute arising from this Agreement shall be resolved through amicable settlement within 14 days of written notice. If settlement fails, the dispute shall be submitted to arbitration under the rules of the Indonesian National Arbitration Board (BANI), with one arbitrator sitting in Jakarta. Arbitration is cheaper and faster than court in Indonesia (6–12 months vs. 3–4 years). BANI arbitration awards are enforceable across ASEAN under the ASEAN Agreement on Dispute Settlement Mechanism, so your judgment carries weight regionally. 3. IP Ownership: LLMs Default to Work-for-Hire, Which Indonesian Law Rejects ChatGPT often generates: All intellectual property created by Vendor in the course of performing Services shall be owned by Client. In the US and UK, this is standard. In Indonesia, it is not. Indonesian copyright law (Law No. 28 of 2014) states that the creator of a work owns copyright unless there is an explic