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All Journal JURNAL MAGISTER HUKUM UDAYANA UIR LAW REVIEW Humani (Hukum dan Masyarakat Madani) EQIEN - JURNAL EKONOMI DAN BISNIS PALAR (Pakuan Law review) JURNAL USM LAW REVIEW Indonesian Journal of International Law Journal of Artificial Intelligence and Digital Business Jurnal Hukum dan Pembangunan Jurnal Cendekia Ilmiah
Velentina, Rouli Anita
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Humanities Computer Science & IT Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Electrical & Electronics Engineering Engineering Law, Crime, Criminology & Criminal Justice Social Sciences

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Party Autonomy, Separability, and Justice in Letter of Credit Dispute Supriyadi, Mohammad Wangsit; Velentina, Rouli Anita; Kumar, Sanjeev; Chhachhar, Varun
UIR Law Review Vol. 10 No. 1 (2026): UIR Law Review
Publisher : UIR Press

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.25299/uirlrev.2026.vol10(1).29415

Abstract

International commercial disputes frequently involve multiple interconnected yet legally independent agreements, including engineering, procurement, and construction (EPC) contracts, letters of credit (L/Cs), and bank account agreements. Although the principle of party autonomy permits contracting parties to select their preferred dispute resolution forum, conflicting jurisdiction clauses across related agreements create fragmented jurisdiction and legal uncertainty. This study examines the legal problem of determining the competent forum when forum selection clauses in interconnected contracts are inconsistent. Using a normative juridical method and a case study of Central Jakarta District Court Decision No. 362/Pdt.G/2017/PN Jkt.Pst., affirmed on appeal, cassation, and judicial review, the research analyzes judicial reasoning in resolving competing jurisdictional claims. The findings reveal that the court asserted jurisdiction by treating the L/C as an integral component of the EPC payment mechanism, thereby subordinating disputes arising from the L/C and related banking arrangements to the forum selection clause in the EPC contract. This reasoning overlooks the principles of party autonomy and the autonomy (separability) of letters of credit, potentially undermining legal certainty in international commercial transactions. The study contributes to private international law scholarship by proposing a more coherent framework for resolving fragmented jurisdiction through greater recognition of the separability principle and the independent legal character of banking instruments.
Co-Authors Achmad, Mustafid Milanto Akbar, Vedita Anfasya, Raka Haikal Arfah, Azizah Chhachhar, Varun Fairuza, Halwa Fairuzia, Halwa Fattah, Akhmad Kautsar Fitriani, Maulida Hayaty, Lydya Jalal, Nur Jani Kumar, Sanjeev Manthovani, Kelly Nafis, Abdul Haris Nainggolan, Nathasya Nauli Nanda, Reza Ria Nasution, Disriani Latifah Soroinda Priatna, Azzahra Vinka Prihantono, Pradipta Rahardi, Andriyan Retnaningsih, Sonyendah Rizky, Faiz Muhammad Sonyendah Retnaningsih, Sonyendah Supriyadi, Mohammad Wangsit Tasman, Annisha Rahmadhila Adha