Employers to Negotiate Contracts on Force Majeure Excuse

By Editorial Team 24/04/2020
Summary

The Indonesian Employers' Association (Apindo) reviewed opportunities for entrepreneurs to change their business contracts after the government imposed disaster status, health emergencies, and force majeure due to the Covid-19 pandemic. Apindo Public Policy Chairman Sutrisno Iwantono said the disaster status allows employers to renegotiate contracts as the pandemic hampered business activities.

However, the disaster, contained in Presidential Decree No. 12/2020, cannot revoke the entire contents of the contract. Negotiations also depend heavily on the agreement of the parties in the contract. Sutrisno gave an example that the government encourages bank customers and financial institutions to negotiate the payment instalment for interests. "The results will be seen more on a case-by-case basis," he told Katadata.co.id on Wednesday, April 15.

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