The Civil Code, Civil Liability, and Contract Law

This chapter is about civil law in Indonesia, which is archaic and unsuited to contemporary needs. It begins by discussing the problematic influence of Dutch colonial law in this area—in particular, the Civil Code and Commercial Code, both 19th century Dutch-language texts—before explaining the operation of Article 1365 of the Civil Code, the main source of civil liability (tort) in Indonesia. After covering vicarious liability and agency, the chapter provides a summary of contract law, including the elements of a valid contact, performance, termination, and material and immaterial damages. It also deals with formal requirements, including notarisation and rules that require some contracts to be in Indonesian. It concludes with an account of consumer, e-commerce and construction contracts, to which particular rules apply.