The ideal of justice as a theoretical reaction to loopholes on the regulation of the principle of freedom of contract in oil and gas construction contracts in Indonesia

Harjono, Dhaniswara K. (2021) The ideal of justice as a theoretical reaction to loopholes on the regulation of the principle of freedom of contract in oil and gas construction contracts in Indonesia. International Journal of Law, 7 (6). pp. 60-65. ISSN 2455 2194

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Abstract

This paper aims to find the ideal regulatory formula for freedom of fair contracting in Indonesia's oil and gas construction contracts. The phenomenon that appears from the dynamics of -the regulation of freedom of contract in oil and gas construction contracts shows that justice has not become a fixed point in contract negotiations, and if it is fair, it has not shown the balance between the two parties negotiating the contract. Empirical facts in several contract negotiations have become a lousy record in implementing oil and gas construction contract regulations. Using John Rawls's theory of justice and normative legal research methods are found: first, the ideal regulation of freedom of contract with justice must prioritise substantive justice by referring to the principles of balance and openness; second, in an ideal fair contract freedom arrangement, the intervention of political power needs to be eliminated so that the freedom to contract on oil and gas construction contracts does not create imbalances in the sense of justice based on egalitarian principles; Third, the regulation on freedom of equitable contracts in oil and gas construction contracts in Indonesia needs to embody the ethic of care which is the basis for non-legal aspects on the situated knowledge of oil and gas construction contract problems in Indonesia. The executor of the work will always experience imbalances and injustices, even though the contract exit mechanism, provisional sum, standardisation of maintenance, temporary stopping, and conformity between tender documents and contracts are ideal regulatory solutions. So that policies for accelerating the development of oil and gas infrastructure will be constrained and result in less than optimal fulfilment of people's needs for oil and gas. Keywords: Justice, freedom of contract, oil and gas construction, political law

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