IMPLICATIONS OF THE COVID-19 PANDEMIC ON BUSINESS CONTRACTS IMPLEMENTATION

Abstract

The spread of Covid-19 has significantly hindered many debtors from fulfilling their contractual obligations. This research addresses issues related to force majeure under Indonesian civil law, specifically whether the Covid-19 pandemic qualifies as force majeure and its legal implications for business contracts. This study employs normative and descriptive legal research methods. The findings indicate that the characteristics of force majeure are not explicitly defined in the Indonesian Civil Code, but generally refer to unforeseen events or natural occurrences. Proving that an event constitutes force majeure is challenging and requires meeting specific criteria. The study highlights that invoking force majeure due to the Covid-19 pandemic imposes a substantial burden on debtors and is subject to strict limitations. Additionally, it examines the impact of the pandemic and related government policies, emphasizing the need for a thorough review of force majeure principles and the importance of the debtor’s good faith in fulfilling contractual obligations despite such hindrances.

Keywords

• contract
• covid-19 pandemic
• force majeure