Development of Indonesian Business Contract Law in The Globalization Era

In business activities in Indonesia, contracts are the basic framework that is used as a framework for relationships for economic actors. The principle of contract law is regulated in the Civil Code. Contracts can give rise to rights and obligations for the parties making the contract. Thus contracts play an important role in doing business in Indonesia. Contract law has existed since the days of Egyptian and Mesopotamian society around 3-4 centuries before Christ and has always experienced developments until now. The development of contract law in countries that adhere to the Common Law system is based on the doctrine of Promissory Estoppel and consideration, where there is an agreement followed by certain legal actions to fulfill the agreement already able to claim compensation, and there is a reciprocal relationship. This development also occurred in the Netherlands where an agreement that was not final but already had legal actions to fulfill the agreement could also claim compensation based on the principle of good faith. The development of contract law in Indonesia is still based on fulfilling the requirements for the validity of the agreement stipulated in article 1320 of the Civil Code, so that it can be called classic contract law. Legal actions that have not been based on Article 1320 of the Civil Code do not yet have legal consequences, so that losses arising from pre-contracts do not receive compensation. Assessment of current contract law, it is necessary to pay close attention to other developments through the development of contract law in other countries or through statutory regulations, which where the aggrieved party at the time of the agreement can claim compensation.