INDONESIA Law and Practice Contributed by: Nico Angelo Putra Mooduto, Mahareksha Singh Dillon, Talitha Amanda Ekadhani and Bagas Ananta, SSEK Law Firm
tual contexts, where it may involve returning the litigant to their previous position or condi- tion before the harm occurred. Indonesian courts generally focus on fair and equitable compensation for losses suffered, with a preference for remedies that restore the successful litigant’s position rather than impose punitive measures. 9.2 Rules Regarding Damages Under Indonesian law, there are two primary grounds for filing a claim: • claims based on default or breach of an agreement; and • claims based on unlawful acts or torts. Unlike common law jurisdictions, punitive dam- ages are not recognised, as damages awarded are purely compensatory for the material or immaterial damages. Regarding breaches of contract, Article 1246 of the Indonesian Civil Code specifies that a party may seek compensation for: • costs that have already been incurred by the affected party (expenses); • damage or loss of property caused by the negligence of the other party (losses); and • profits that were anticipated but not realised due to the breach (interest). If not regulated under the contract, Article 1250 of the Indonesian Civil Code provides the per- centage of interest on monetary judgments at 6% per annum, calculated from the date of it first requested before the court. Liquidated damages are enforceable under Arti- cle 1249 of the Indonesian Civil Code. For these
types of damages, the non-defaulting party must not receive damages that are higher or lower than the amount agreed in the contract. Damages that may be awarded are those that were foreseeable at the time the agreement was concluded and are a direct result of the breach, under Articles 1247 and 1248 of the Indonesian Civil Code. For unlawful acts, the panel of judges is required to ascertain the existence of a causal connection between the defendant’s actions and the harm or damages claimed by the plaintiff. Addition- ally, Article 1371(2) of the Indonesian Civil Code suggests that compensation for unlawful acts should be assessed based on the position and capacity of both parties involved, as well as the factual circumstances of the case. 9.3 Pre-judgment and Post-judgment Interest Article 1250 of the Indonesian Civil Code man- dates the accrual of post-judgment interest at a rate of 6% per annum, calculated from the date it is requested in court until the obligation is fulfilled. While the Article specifies that default interest must only be paid from the time it is for- mally requested in court, jurisprudence in Indo- nesia offers a noteworthy exception. Specifically, Supreme Court Decision No 367 K/Sip/1972, states that compensation for losses and interest may commence from the date the loss occurred. 9.4 Enforcement Mechanisms of a Domestic Judgment Once a domestic judgment becomes final and binding, if the losing party does not voluntar- ily comply, the successful party may submit an enforcement application to the district court in the jurisdiction of the losing party’s residence.
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