The Principle of Good Faith in Indonesian Law

Oct 13, 2025 by vinooalluri.com 30 views

The Principle of Good Faith in the Prohibited Agreement: A Study of Decision Number 01/PDT.KPPU/2013/PN/JKT.UT

Introduction

In the realm of Indonesian law, agreements are governed by the Civil Code, which outlines the four main conditions for a valid agreement: the existence of agreements, the skills of the parties, certain matters, and the permitted causes. Article 1337 of the Civil Code emphasizes that a cause is considered forbidden if prohibited by law or contrary to decency and public order. This means that agreements that violate applicable provisions, especially those regulated in Law No. 5 of 1999 concerning Prohibition of Monopoly Practices and Unfair Business Competition, can be considered invalid. This thesis aims to discuss the prohibited agreement in Indonesia, the role of the Business Competition Supervisory Commission (KPPU) in determining the agreement, as well as the application of the principle of good faith in the context of the decision number 01/PDT.KPPU/2013/PN/JKT.UT.

The Principle of Good Faith in Indonesian Law

The principle of good faith is an essential concept in Indonesian law, which reflects honesty, transparency, and good intentions in carrying out an agreement. In many cases, especially in the context of business, good faith can be a determining factor in whether or not an agreement is valid. The application of this principle in Indonesia needs to be regulated more clearly in order to provide legal certainty. This is also seen in practice in other countries, such as Japan and European countries, which provide an exception to prohibited agreements if supported by strong good faith and often require government approval.

The Role of KPPU in Determining Prohibited Agreements

The Business Competition Supervisory Commission (KPPU) plays a crucial role in determining prohibited agreements in Indonesia. KPPU Decision Number 02/KPPU-I/2013 shows that the KPPU applies an illegal approach, where the type of agreement is automatically considered illegal. However, in the decision number 01/PDT.KPPU/2013/PN/JKT.UT, the judge canceled the KPPU's decision related to PT Pelindo, which was considered to be a prohibited agreement. This cancellation was carried out because PT Pelindo showed good faith, which was proven to have a positive impact on the community and the country. This decision reflects efforts to uphold the principle of justice in law.

The Weaknesses of the Illegal Approach Adopted by KPPU

The illegal approach adopted by KPPU has a number of weaknesses, especially in the context of the application of fair and wise law. Without considering the good context and faith of the parties, agreements that might provide benefits for the community can be automatically considered illegal, which can potentially be detrimental. This approach can lead to a lack of legal certainty and can create a negative impact on businesses and the community.

The Importance of Regulating Good Faith in Prohibited Agreements

It is essential for the legal system in Indonesia to be more clear in explaining the meaning and application of good faith in prohibited agreements. This can be achieved by regulating the principle of good faith in a more detailed and specific manner, taking into account the context and faith of the parties involved. By doing so, we can create a more fair and balanced legal environment, which not only complies with existing rules, but also respects the values of justice and the interests of the community.

Conclusion

In conclusion, the principle of good faith is an essential concept in Indonesian law, which reflects honesty, transparency, and good intentions in carrying out an agreement. The application of this principle in Indonesia needs to be regulated more clearly in order to provide legal certainty. The illegal approach adopted by KPPU has a number of weaknesses, especially in the context of the application of fair and wise law. Therefore, it is essential for the legal system in Indonesia to be more clear in explaining the meaning and application of good faith in prohibited agreements.

Recommendations

Based on the findings of this study, the following recommendations are made:

The legal system in Indonesia should be more clear in explaining the meaning and application of good faith in prohibited agreements.
The principle of good faith should be regulated in a more detailed and specific manner, taking into account the context and faith of the parties involved.
The KPPU should consider the good context and faith of the parties in determining prohibited agreements.
The government should provide more support and guidance to businesses and the community in understanding and applying the principle of good faith in prohibited agreements.

Limitations of the Study

This study has several limitations, including:

The study only focuses on the principle of good faith in prohibited agreements in Indonesia.
The study only examines the decision number 01/PDT.KPPU/2013/PN/JKT.UT and KPPU Decision Number 02/KPPU-I/2013.
The study does not provide a comprehensive analysis of the principle of good faith in other countries.

Future Research Directions

Future research directions include:

Conducting a comprehensive analysis of the principle of good faith in other countries.
Examining the application of the principle of good faith in other areas of law, such as contract law and tort law.
Investigating the impact of the principle of good faith on businesses and the community.

References

Civil Code of Indonesia.
Law No. 5 of 1999 concerning Prohibition of Monopoly Practices and Unfair Business Competition.
KPPU Decision Number 02/KPPU-I/2013.
KPPU Decision Number 01/PDT.KPPU/2013/PN/JKT.UT.
PT Pelindo v. KPPU (2013).

Appendix

The appendix includes the following:

A list of abbreviations used in the study.
A list of references cited in the study.
A copy of the decision number 01/PDT.KPPU/2013/PN/JKT.UT and KPPU Decision Number 02/KPPU-I/2013.
Frequently Asked Questions (FAQs) about the Principle of Good Faith in Prohibited Agreements

Q: What is the principle of good faith in prohibited agreements?

A: The principle of good faith is an essential concept in Indonesian law, which reflects honesty, transparency, and good intentions in carrying out an agreement. In many cases, especially in the context of business, good faith can be a determining factor in whether or not an agreement is valid.

Q: Why is the principle of good faith important in prohibited agreements?

A: The principle of good faith is important in prohibited agreements because it helps to ensure that agreements are carried out in a fair and transparent manner. Without good faith, agreements can be carried out in a way that is detrimental to one or both parties, which can lead to legal disputes and financial losses.

Q: What is the difference between a prohibited agreement and a good faith agreement?

A: A prohibited agreement is an agreement that is prohibited by law or contrary to decency and public order. A good faith agreement, on the other hand, is an agreement that is carried out in a fair and transparent manner, with honesty and good intentions.

Q: How does the KPPU determine whether an agreement is prohibited or not?

A: The KPPU determines whether an agreement is prohibited or not by considering the type of agreement and the context in which it is carried out. If the agreement is considered to be prohibited, the KPPU may cancel the agreement or impose penalties on the parties involved.

Q: What is the significance of the decision number 01/PDT.KPPU/2013/PN/JKT.UT?

A: The decision number 01/PDT.KPPU/2013/PN/JKT.UT is significant because it reflects the efforts of the court to uphold the principle of justice in law. In this case, the court canceled the KPPU's decision related to PT Pelindo, which was considered to be a prohibited agreement, because PT Pelindo showed good faith.

Q: What are the implications of the principle of good faith in prohibited agreements?

A: The implications of the principle of good faith in prohibited agreements are significant. If the principle of good faith is not applied, agreements can be carried out in a way that is detrimental to one or both parties, which can lead to legal disputes and financial losses. On the other hand, if the principle of good faith is applied, agreements can be carried out in a fair and transparent manner, with honesty and good intentions.

Q: How can businesses and individuals apply the principle of good faith in prohibited agreements?

A: Businesses and individuals can apply the principle of good faith in prohibited agreements by being transparent and honest in their dealings, and by carrying out agreements in a fair and reasonable manner. They should also be aware of the laws and regulations that govern prohibited agreements and take steps to comply with them.

Q: What are the benefits of applying the principle of good faith in prohibited agreements?

A: The benefits of applying the principle of good faith in prohibited agreements include:

Reduced legal disputes and financial losses
Improved relationships between businesses and individuals
Increased trust and confidence in the business community
Better compliance with laws and regulations

Q: What are the challenges of applying the principle of good faith in prohibited agreements?

A: The challenges of applying the principle of good faith in prohibited agreements include:

Difficulty in determining what constitutes good faith
Limited understanding of the principle of good faith among businesses and individuals
Limited resources and expertise to apply the principle of good faith
Limited support and guidance from the government and regulatory bodies.

Q: What is the future of the principle of good faith in prohibited agreements?

A: The future of the principle of good faith in prohibited agreements is promising. As the business community becomes more aware of the importance of good faith, we can expect to see more businesses and individuals applying the principle of good faith in their dealings. The government and regulatory bodies can also play a more active role in promoting and supporting the application of the principle of good faith.