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Rembrandt, Rembrandt
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Reconstruction of the Principle of Proportionality in Contract Law within the Palm Oil Plantation Sector Sayuti, Ageng Triganda; Nurdin, Zefrizal; Rembrandt, Rembrandt; Syofiarti, Syofiarti
Journal of Law and Legal Reform Vol. 7 No. 1 (2026): January, 2026
Publisher : Faculty of Law, Universitas Negeri Semarang

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.15294/jllr.v7i1.36219

Abstract

This paper investigates the urgent need to reconstruct the principle of proportionality within contracts for palm oil partnerships, where structural power imbalances, information asymmetry, opaque financing arrangements, and unilateral sanction mechanisms systematically disadvantage plasma smallholders. The study aims to identify the fundamental factors that hinder the effective application of proportionality in oil palm partnership and to formulate an operational framework capable of ensuring contractual justice within highly asymmetric agribusiness relationships. Employing a normative juridical method complemented by conceptual, comparative, and socio-legal approaches, this research analyses Indonesian contract law, institutional practices, and international regulatory models drawn from Malaysia, Thailand, and India. The findings reveal that the proportionality principle in Indonesia remains largely abstract and lacks enforceable parameters, enabling exploitative contractual clauses such as undisclosed deductions, disproportionate risk distribution, and one-sided penalties to persist in nucleus plasma schemes. Comparative insights demonstrate that proportionality can be translated into practice through mandatory disclosure obligations, standardized minimum clauses, equitable risk-sharing mechanisms, contract registration, and accessible local dispute-resolution systems. The principal novelty of this study lies in proposing a three-pillar operational model of proportionality substantive, procedural, and sanction-based integrated with institutional governance reforms and community empowerment strategies. The paper concludes that reconstructing proportionality requires both normative refinement and structural intervention across negotiation processes, corporate procurement practices, evidentiary mechanisms, and state oversight. This integrated framework provides a concrete basis for embedding substantive justice within palm oil agreements and strengthening legal protection for structurally weaker parties.
Co-Authors Abdi Iswahyudi Yasril Ahmad Juanda Ahmad Julian, Yoga Aldri Frinaldi Alwi Nofriandi Amini, Aisyah Aprilliani, Cici Arbi, Yaumal Arif Rahman Hakim Arif, Rahman Arlius, Apriwandi Audia, Washilla Batubara, Fanny Yuliana Busyra Azheri Dasman Lanin Donny Fernandez Elda, Edita Elwi Danil Fahrur Rozi Fardila, Midratul Fazira, Yefnika Febrina, Cory Febrina, Suci Fenty Kurnia Oktorina Firman Hidayat Frinaldri, Aldri Genesa Hatika, Rindi Harmedi Yulian Saputra Haryandu, Randu hendrita, juli Herlambang, Fahreza Hidayah, Syaiful Imran, Siti Lauriyanti Indang Dewata Insani, Munadia Irvanda, Rico Islami, Syaifuddin Istigfarini, Hafida Iswahyudi, Abdi Jefri Kurniawan, Jefri Jelibseda, Jelibseda Kartika, Imelda Rahmayunia Khairani, Rahayu Tia Kiki Amelia, Kiki Luchia Saldi, Sindi M. Hasbi M. Ridha Madani, Ahmad Meladina Meladina Meuraksa, Irawati Mhd Ridha Muhayatul, Muhayatul Nawir, Iin Hidayah Ningsih, Dwi Elvia Nugraha, Yodi Nurlaeli, Rina Oktari, Fadhilla Pardede, Sudarto Perdani, Agung Sandi Putra, Yozarwardi Usama Rahayu, Youngky Gerre Razi, Fatrul Rezkik, Fitrianola Rina Mariyana Rindi Genesa Hatika Romiyadi Romiyadi Salsabila, Ilham Saputra, Harmedi Yulian Sari, Indri Gus Permata Sati’at, Nur Anisa Sayuti, Ageng Triganda Siregar, Dewi Rahmadani Siti Aisyah Sofiani, Suci Sofyan, Syofirman Sukanda Husin Susilastri, Susilastri Syafarman, Syafarman Syafri, Rifki Randa Syam, Misnar Syofiarti Taufiqurrahman Taufiqurrahman Umar, Genius Umar, Iswandi Wahyunus, Martin Washilla Audia Wetria Fauzi Wulandary, Siti Zulaika Yasniwati, Yasniwati Yati, Lisa Medika Yofirsta, Rova Yuliana Batubara, Fanny Yulkifli Yulkifli Yunia Sari, Mesi Zefrizal Nurdin, Zefrizal Zuldani, Irwan