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The Binding Force of Goods/Services Procurement Contracts from the Perspective of Article 1338 of the Indonesian Civil Code Andhika Ariayuda; Sarwono Hardjomuldjadi; Sami'an Sami'an; Dwi Edi Wibowo
Interdisciplinary Social Studies Vol. 5 No. 1 (2025): Regular Issue: October-December 2025
Publisher : International Journal Labs

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55324/iss.v5i1.988

Abstract

This article provides a comprehensive analysis of the binding force of procurement contracts within the framework of Article 1338 of the Indonesian Civil Code (KUH Perdata), which establishes that any legally executed agreement shall bind the parties with the force of law (pacta sunt servanda). Using a literature-based methodology, this study examines national regulations (the Indonesian Civil Code, public procurement legislation, Presidential Regulation No. 16/2018 and its amendments), legal doctrines of contract law and administrative law, as well as relevant judicial decisions. The findings show that procurement contracts possess a dual legal nature: they are private agreements governed by civil law while simultaneously being influenced by public law due to the state’s involvement and the use of public financial resources. As a result, their binding force is determined not only by compliance with the legal conditions for contract validity (Article 1320 of the Civil Code) but also by adherence to principles of transparency, accountability, efficiency, and regulatory conformity in public procurement. The study reveals that the application of Article 1338 to procurement contracts must consider: (1) the limits of freedom of contract, (2) standardized government procurement documents, (3) safeguards against abuse of power, and (4) dispute-resolution mechanisms such as objections, mediation, arbitration, or litigation. This article concludes that the binding nature of procurement contracts is not absolute; rather, it is contextual and conditioned by principles of good governance and public financial accountability. The study contributes to the development of procurement contract doctrine within the Indonesian legal system.
Legal Protection for Foreign Investors in Infrastructure Projects Supporting Mining Downstreaming in Indonesia: A Systematic Literature Review Sandi Saputra; Sami'an Sami'an; Sarwono Hardjomuljadi; Dwi Edi Wibowo
Journal of Social Research Vol. 5 No. 2 (2026): Journal of Social Research
Publisher : International Journal Labs

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55324/josr.v5i2.3024

Abstract

The article aims to identify legal issues and legal solutions that affect legal protection for foreign investment in infrastructure and downstream projects in Indonesia. The analysis uses a systematic literature review method. The focus of the analysis lies in four areas: (1) enforcement of arbitral awards (New York Convention 1958; Law 30/1999), (2) the position of arbitration (seat), lex arbitri, and the standard of "public order", (3) the division of contractual risks in GPBU/EPC/O&M (change-in-law, tax gross-up, step-in lender, termination/compensation, government guarantee, land acquisition), and (4) BIT/ISDS as an additional layer of protection. Although the results show a more pro-enforcement tendency, key problems remain: flexible interpretation of "public order", slow and formalistic exequatur, undisciplined seat selection, inconsistency in clauses in contract documents, inconsistencies in land procurement, and unclear reasons and regressions in government guarantees. This article provides several legal options. The first is a judicial guideline that aims to reduce "public order" and avoid reassessing the subject matter. The second is the standardization of exequatur, which includes standards such as SLAs, file templates, and e-filing. The third is the recognition of short-term relief, which includes an emergency arbitrator. The fourth is the hygienic arbitration clause model, which includes changes in the law, seat, lex arbitri, consolidation, and joinder. The package reduces the risk of greater actions, speeds up the opening of financial accounts, and enhances the legal protection of foreign investors.