CAN COVID-19 BE CONSTRUED AS A FORCE MAJEURE IN THE AGREEMENT?

  • Deborah Serepinauli Faculty of Law, Universitas Indonesia
  • Dennis Evan Faculty of Law, Universitas Indonesia
Keywords: COVID-19, force majeure, agreement

Abstract

The COVID-19 not only affects human health but also spreads to business sectors in Indonesia. The government has issued several regulations in response to COVID-19, for instance, companies are required to operate at a minimum operation level. Furthermore, due to COVID-19 and government requirements, numerous performances in agreement are either delayed or cancelled. Given the above, the issue of COVID-19 as a force majeure is also increasingly discussed. However, before declaring COVID-19 as a force majeure, the parties should consider the governing law of the agreement, the conditions, and the clause of force majeure in the agreement. Recently, the Bengkulu District Court also made a decision on the Case No. 3/Pdt.G.S./2020 in which the defendant argued that its performance could not be held due to COVID-19. Hence, this study will discuss the concept of force majeure under Indonesian law and whether COVID-19 fulfil this concept.

Author Biographies

Deborah Serepinauli, Faculty of Law, Universitas Indonesia

Deborah Serepinauli Harahap, S.H. born in Jakarta. Deborah obtained her bachelor’s degree in 2019 from the Faculty of Law, Universitas Indonesia. Currently, she is working as a general affair staff at a medical clinic in Jakarta. During her educational journey, Deborah has received awards in competitions, such as 2nd winner of ALSA Call for Paper in 2018 and 2nd Winner of ALSA Indonesia Legal Review Competition - HKHPM Award in 2019. Deborah can be reached via the following e-mail: debbie.harahap@gmail.com.

Dennis Evan, Faculty of Law, Universitas Indonesia

Dennis Evan S.H., born in Jakarta. Dennis obtained his bachelor’s degree in 2019 from the Faculty of Law, Universitas Indonesia. He is currently employed by a prominent law firm in Jakarta and focused on litigation practice group at his law firm. While studying at the university, Dennis has received awards in competitions, such as 3rd Winner of Internal Moot Court Competition in 2016 and 2nd winner of ALSA Call for Paper in 2018. Furthermore, Dennis is also the co-writer of an article entitled "Pure Economic Loss in Indonesia: Shall It Be Abandoned or Adopted?" which has been published by Atlantis Press. Dennis can be reached via the following email: dennisevanur@gmail.com.

Published
2020-12-22