Force Majeure During COVID-19 Outbreaks: Case of the Cancellation and Termination of Government Construction Contracts
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Published
May 31, 2023
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Abstract
Force majeure is a contractual clause commonly found in government construction work contracts, defining the circumstances that qualify as absolute or relative force majeure. This research aims to address two key questions: First, can the force majeure clause be invoked to justify the cancellation and termination of construction work contracts amidst the Covid-19 pandemic? Second, what is the method of accountability for risks associated with construction work contracts in light of the pandemic? Employing normative juridical research methods, this study concludes that the Covid-19 pandemic alone cannot serve as an automatic basis for contract cancellation or nullification under the force majeure clause. The service user, typically the government, may demand the successful completion of the project from the providers. However, the pandemic qualifies as a relative force majeure, shifting the liability for risk during contract implementation to the provider, subject to court decisions. Thus, legal events qualifying as force majeure during the Covid-19 outbreak will be determined by court decisions.
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How to Cite
Muskibah, M., Yetniwati, Y., Sasmiar, S., & Holish, A. M. (2023). Force Majeure During COVID-19 Outbreaks: Case of the Cancellation and Termination of Government Construction Contracts. Journal of Indonesian Legal Studies, 8(1), 129-158. https://doi.org/10.15294/jils.v8i1.68937
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Research Articles
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Kaya, Putu Bagus Tutuan Aris, “Kajian Force Majeure terkait Pemenuhan Prestasi Komersial Pasca Penetapan Covid-19 sebagai Bencana Nasional”. Kertha Semaya 8. No. 6 (2020): 891-901. https://doi.org/10.24843/KS.2022.v10.i12
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Suhardiman, Diana and Peter P. Mollinga. "Institutionalized Corruption in Indonesian Irrigation: An Analysis of the Upeti System." Development Policy Review 35, No. 1 (2017): 140-159. https://doi.org/10.1111/dpr.12276
Sutrawaty, Laras. “Force Majeure Sebagai Alasan Tidak Dilaksanakan Suatu Kontrak Ditinjau Dari Perspektif Hukum Perdata”. Thesis (Palu: Universitas Tadulako, 2016).
Syamsiah, Desi. “Penyelesaian Perjanjian Hutang Piutang sebagai akibat Force Majeure karena Pandemi Covid-19.” Legal Standing Jurnal Ilmu Hukum 4, No. 1 (2020): 306-313. http://dx.doi.org/10.24269/ls.v4i1.2783
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Alfadil, Mo hammad Omar,Mukhtar A. Kassem, Kherun Nita Ali, and Wael Alaghbari, “Construction Industry from Perspective of Force Majeure an Environmental Risk Compared to the COVID-19 Outbreak: A Systematic Literature Review”. Sustainability 14, No. 3, (2022): 1135. https://doi.org/10.3390/su14031135.
Alkadri, Riska, et al. "Health workers protection on incentive and compensation decision during the outbreak of Covid-19 in Indonesia." AIP Conference Proceedings 2573, 020009 (2022). https://doi.org/10.1063/5.0104122
Aminah, Aminah. “Pengaruh Pandemi Covid 19 pada Pelaksanaan Perjanjian.” Diponegoro Private Law Review 7, No. 1 (2020): 10-16.
Arini, Annisa Dian. “Pandemi Corona sebagai Alasan Force Majeure dalam Suatu Kontrak Bisnis.” Supremasi Hukum 9, No. 1 (2020): 42-56. https://doi.org/10.14421/sh.v9i1.2129
Badrulzaman, Mariam Darus. Kompilasi Hukum Perikatan, (Bandung: PT Citra Aditya Bakti, 2016).
Betham, Ashari Abd Asis, Nasrun Hipan, and Firmansyah Fality. “Analisis Yuridis Prosedur Pengadaan Barang/Jasa Pemerintah serta Perlindungan Hukum terhadap Pelaku Pengadaan Barang/Jasa”, Jurnal Yustiabel 3 No. 2, (2019): 191-212. https://doi.org/10.32529/yustisiabel.v3i2.398
Budiono, Herlien. Ajaran Umum Hukum Perjanjian dan Penerapannya di Bidang Kenotariatan. (Bandung: PT. Citra Aditya Bakti, 2019).
Dynesia, Tessa Septy. "The Effectiveness of Indonesian Government Assistance in Handling and Breaking Covid-19 Chains." The Indonesian Journal of International Clinical Legal Education 2, No. 3 (2020): 245-256. https://doi.org/10.15294/ijicle.v2i3.38417
Ezeldin, A. Samer, and Amr Abu Helw, ‘’Proposed Force Majeure Clause for Construction Contracts under Civil and- Common Law’’, Journal of Legal Affairs and Dispute Resolution in Engineering and Construction 10, No. 3 (2018). https://doi.org/10.1061/(ASCE)LA.1943-4170.0000255
Habeahan, Besty and Sena Rusiana Siallagan. “Tinjauan Hukum Keadaan Memaksa (Force Majeure) dalam Pelaksanaan Kontrak Bisnis pada Masa Pandemi Covid-19.” Nommensen Journal of Legal Opinion 2, No. 2 (2021): 168-180. https://doi.org/10.51622/njlo.v2i02.369
Hadjon, Philipus M. Perlindungan Hukum bagi Rakyat Indonesia. (Surabaya: PT. Bina Ilmu, 1987).
Hansen, Seng. "Does the COVID-19 Outbreak Constitute a Force Majeure Event? A Pandemic Impact on Construction Contracts." Journal of the Civil Engineering Forum 6, No. 2 (2020): 201-214. https://doi.org/10.22146/jcef.54997
Harris, Rahadyan Fajar, and Natalia Carolina Simanjuntak. "Implementation of The Siracusa Principles as Foundations for Reformulation of Social Restriction Policies in Public Health Emergencies." Unnes Law Journal 8, No. 1 (2022): 39-64. https://doi.org/10.15294/ulj.v7i1.54504
Hernoko, Agus Yudha. Hukum Perjanjian Asas Proporsionalitas dalam Kontrak Komersial. (Jakarta: Kencana Prenada Group, 2021).
Isradjuningtias, Agri Chairunisa. "Force Majeure (Overmacht) dalam Hukum Kontrak (Perjanjian) Indonesia." Veritas et Justitia 1, No. 1 (2015): 146-158. https://doi.org/10.25123/vej.v1i1.1420.
Januar, Inri. “Pelaksanaan Prestasi Dalam Keadaan Memaksa yang Terjadi pada Masa Pandemik”, Jurnal Hukum To-Ra 6, No. 2 (2020): 185-195, https://doi.org/10.33541/JtVol5Iss2pp102
Januarita, Ratna, and Yeti Sumiyati. "Legal Risk Management: Can The COVID-19 Pandemic be Included as a Force Majeure Clause in a Contract?." International Journal of Law and Management 63, No. 2 (2021): 219-238. https://doi.org/10.1108/IJLMA-05-2020-0140
Japar, Sugiarto Raharjo. “Prinsip-Prinsip Kontrak Konstruksi Indonesia”, Mimbar Yustitia 2, No. 2, (2018): 192, https://doi.org/10.52166/mimbar.v2i2.1410.
Jennejohn, Matthew, Julian Nyarko, and Eric L. Talley, “COVID-19 As a Force Majeure in Corporate Transactions.” SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3577701.
Kabiru, Jibrin Mohammed and Bashir Husain Yahaya, “Can Covid-19 Considered as Force Majeure Event in the Nigeria Construction Industry?”, International Journal of Scientific Engineering and Science 4, No. 6, (2020): 34-39.
Kang, Cindy, et al. "The Applicability of Force Majeure Clause During the Covid-19 Pandemic in Indonesia and France." Jurnal Komunikasi Hukum (JKH) 7, No. 2 (2021): 907-923.
Kaya, Putu Bagus Tutuan Aris, “Kajian Force Majeure terkait Pemenuhan Prestasi Komersial Pasca Penetapan Covid-19 sebagai Bencana Nasional”. Kertha Semaya 8. No. 6 (2020): 891-901. https://doi.org/10.24843/KS.2022.v10.i12
Kenny, Charles. "Transport Construction, Corruption and Developing Countries." Transport Reviews 29, No. 1 (2009): 21-41. https://doi.org/10.1080/01441640802075760
Kunarso, A. Djoko Sumaryanto, ‘’Eksistensi Perjanjian Ditengah Pandemi Covid-19’’, Batutulis Civil Law Review 1, No. 1 (2021): 33-46, https://doi.org/10.47268/ballrev.v1i1.423
Manurung, Edison Hatoguan, Sri Gambir Melati, and Dimas Pramodya Dwipayana. "Omnibus Law on Job Creation in the Construction Sector of Indonesia." International Journal of Multidisciplinary Research and Literature 1, No. 4 (2022): 408-413. https://doi.org/10.53067/ijomral.v1i4.46
McEvoy, Emma, and Delia Ferri. "The Role of the Joint Procurement Agreement During the COVID-19 Pandemic: Assessing Its Usefulness and Discussing Its Potential to Support a European Health Union." European Journal of Risk Regulation 11, No. 4 (2020): 851-863. http://dx.doi.org/10.1017/err.2020.91
Milendra, Joel Timothy. “Analisa Klausula Force Majeure pada Perjanjian Pemborongan Pekerjaan antara PT. Sinergi Mega Karya dengan PT. Nansari Indonesia dalam Situasi Pandemi Covid-19.” DIH: Jurnal Ilmu Hukum 17, No. 1 (2021): 1-11. https://doi.org/10.30996/dih.v17i1.4615
Muhammad, Abdul Kadir. Hukum Perikatan. (Bandung: Alumni, 2018).
Olivia, Susan, John Gibson, and Rusan Nasrudin. "Indonesia in the Time of Covid-19." Bulletin of Indonesian Economic Studies 56, No. 2 (2020): 143-174. http://dx.doi.org/10.1080/00074918.2020.1798581
Pangaribuan, Togi. “Permasalahan Penerapan Klausula Pembatasan Pertanggungjawaban dalam Perjanjian terkait Hak Menuntut Ganti Kerugian akibat Wanprestasi”. Jurnal Hukum & Pembangunan 49, No. 2 (2019): 443-454. http://dx.doi.org/10.21143/jhp.vol49.no2.2012
Pertiwi, Kanti and Susan Ainsworth. "“Democracy is the Cure?”: Evolving Constructions of Corruption in Indonesia 1994–2014." Journal of Business Ethics 173, No. 3 (2021): 507-523. https://link.springer.com/article/10.1007/s10551-020-04560-y
Raharjo, Satjipto. Ilmu Hukum. (Bandung: PT. Citra Aditia Bakti, 2014).
Risma, Andi and Zainuddin, ‘’Tafsir Pandemi Covid-19 sebagai Alasan Force Majeure yang Mengakibatkan Pembatalan Perjanjian’’, Wawasan Yuridika 5 No. 1 (2021): 1001-112. http://dx.doi.org/10.25072/jwy.v5i1.420
Rodiyah, Rodiyah, et al. "Child Food Security Policy: The Problems and Challenges in the Globalization Era During Covid-19 Outbreak." AIP Conference Proceedings 2573, 030021 (2022). https://doi.org/10.1063/5.0104136
Ruparathna, Rajeev, and Kasun Hewage. "Review of Contemporary Construction Procurement Practices." Journal of Management in Engineering 31, No. 3 (2015): 04014038. http://dx.doi.org/10.1061/(ASCE)ME.1943-5479.0000279
Saputri, Elsa Mellinda. “Determination of Emergency Conditions: How Government Fulfill the Workers Rights during Large-scale Social Restrictions?." The Indonesian Journal of International Clinical Legal Education 2, No. 3 (2020): 287-300. https://doi.org/10.15294/ijicle.v2i3.38374
Setiawan, R. Pokok-Pokok Hukum Perikatan. (Bandung: Bina Cipta, 2022).
Stiles, Shelly, David Golightly, and Brendan Riyan, ‘’Impact of Covid-19 on Health and Safety in Construction Sector’’, Human Factors and Ergonomics in Manufacturing & Service Industries 31, No. 4 (2021): 425–37. https://doi.org/10.1002/hfm.20882.
Suadi, Amran. Penyelesaian Sengketa Ekonomi Syariah: Penemuan Kaedah Hukum. (Jakarta: Prenada Media Grup, 2018).
Subekti, R. Pokok-Pokok Hukum Perdata. (Jakarta: Intermasa, 2003).
Sufiarina, Sufiarina and Sri Wahyuni, “Force Majeure dan Notoir Feiten Atas Kebijakan PSBB Covid-19”, Jurnal Hukum Sasana 6, No. 1 (2020): 1-15. https://doi.org/10.31599/sasana.v6i1.209
Sugiastuti, Natasya Yunita. "Force Majeure as a Justification for Failure to Fulfill Contractual Obligations Due to the Covid-19 Pandemic: Suspending or Terminating Contract?." KnE Social Sciences (2022): 202-218. https://doi.org/10.18502/kss.v7i15.12091
Suhardiman, Diana and Peter P. Mollinga. "Institutionalized Corruption in Indonesian Irrigation: An Analysis of the Upeti System." Development Policy Review 35, No. 1 (2017): 140-159. https://doi.org/10.1111/dpr.12276
Sutrawaty, Laras. “Force Majeure Sebagai Alasan Tidak Dilaksanakan Suatu Kontrak Ditinjau Dari Perspektif Hukum Perdata”. Thesis (Palu: Universitas Tadulako, 2016).
Syamsiah, Desi. “Penyelesaian Perjanjian Hutang Piutang sebagai akibat Force Majeure karena Pandemi Covid-19.” Legal Standing Jurnal Ilmu Hukum 4, No. 1 (2020): 306-313. http://dx.doi.org/10.24269/ls.v4i1.2783
Thamrin, Husni. “Landasan Yuridis Gugatan Pembatalan Perjanjian Build Operate Transfer”, Jurnal Ilmu Hukum: The Juris 2, No. 1 (2018): 21-34. https://doi.org/10.56301/juris.v2i1.34
Wibowo, Richo Andi. “Preventing Maladministration in Indonesian Public Procurement: A Good Public Procurement Law Approach and Comparison with the Netherlands and the United Kingdom”. PhD Thesis (Utrecht: Utrecht University, 2017).
Yustiarini, Dewi, et al. "Transparency in The Implementation of Construction Services Based on The Perception of The Public Information Disclosure Act in Indonesia." First International Conference on Administration Science (ICAS 2019). Atlantis Press, 2019. https://doi.org/10.2991/icas-19.2019.65