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Contract Law
The ability to make and enforce contracts under a clear, consistent legal framework is crucial for economic growth. When businesses and individuals feel certain that agreements will be promptly and efficiently enforced, risk diminishes, the cost of doing business is reduced, and long-term planning becomes possible. Indonesia’s contract law is comparable to the contract law established in other major commercial countries. It allows businesses to enter into agreements freely and seek justice from a court or other tribunal when necessary. However, contract enforcement in Indonesia can be so uncertain, unpredictable, and costly that the adequacy of the law itself has become meaningless. The poorly developed Indonesian court system is the cause of these enforcement problems.
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