HOW JUDICIARY SUPPORTS CONTRACT LAW ENFORCEMENT: Indonesian Experience

Abstract

Contract law enforcement matters since it is one of the indications used by the World Bank to determine ease of doing business. The more effective the settlement of agreement dispute, the better the business environment in a country. The issues with Indonesian Courts are inefficiency, inconsistency, and poor use of technology to support litigation process. This article aims to evaluate why the Indonesian judiciary reformation is yet to be swift and efficient in process. It is normative research using secondary data from regulation documents, books, articles, and journals. The data are analyzed qualitatively by organizing them into categories before coding. Then, they are analyzed using narrative analysis. The research results indicate that the Indonesian judiciary has not wholeheartedly implemented the reforms, indicated by the optional use of e-court and small claim court, lack of mediation skills and facilities, and lack of technology used for litigation process in courtroom. This research contributes in providing accurate information on how the judiciary should improve its performances to function efficiently so it supports government’s program to create positive business climate in Indonesia, by requiring simple lawsuit, e-court use expansion, optimal use of technology, and improving the judge’s skills.