Force Majeure Parameter in Goods and Services Procurement Contract by The Government


Force Majeure, Services Procurement, Government


The 2019 Corona Virus Disease (Covid-19) pandemic has significantly contributed to global insecurity. The Decree of the President of the Republic of Indonesia about the Designation of Covid-19 as a National Disaster serves as the basis for enforcing force majeure clauses in business contracts, including contracts for the procurement of goods and services. Typically, a contract includes a force majeure provision. However, no corporate actors regulate the onset of certain diseases' pandemics, like the present Covid-19 pandemic. Therefore, it is required to conduct a thorough analysis of the characteristics of the government's failure to fulfill the contract for the acquisition of goods and services, which can be classed as a kind of force majeure. The force majeure parameters must satisfy the following conditions: (a) the government's failure to perform as a result of a circumstance that cannot be anticipated or that is beyond the parties' control, and (b) the occurrence of such a circumstance impedes or prevents the fulfillment of the obligation specified in the contract. Keywords: Covid-19 Pandemic, Procurement Contract, Force Majeure Parameter.