CAN COVID-19 BE CONSTRUED AS A FORCE MAJEURE IN THE AGREEMENT?

Abstract

The COVID-19 not only affects human health but also spreads to business sectors in Indonesia. The government has issued several regulations in response to COVID-19, for instance, companies are required to operate at a minimum operation level. Furthermore, due to COVID-19 and government requirements, numerous performances in agreement are either delayed or cancelled. Given the above, the issue of COVID-19 as a force majeure is also increasingly discussed. However, before declaring COVID-19 as a force majeure, the parties should consider the governing law of the agreement, the conditions, and the clause of force majeure in the agreement. Recently, the Bengkulu District Court also made a decision on the Case No. 3/Pdt.G.S./2020 in which the defendant argued that its performance could not be held due to COVID-19. Hence, this study will discuss the concept of force majeure under Indonesian law and whether COVID-19 fulfil this concept.