Overview

Within the span of just a few short months, Corona Virus Disease 2019 (“COVID-19”) has drastically changed people’s way of life and how businesses operate across the world. These changes have gone on to have a huge effect on the global economy,[1] including in Indonesia.[2]

Under these conditions, the risk of non-performing contractual obligations has hugely increased and obligors are forced to search for relief or defense in relation to any liabilities which may arise as a result of said non-performance. Arguably, the most popular defense commonly employed is that of force majeure, which is also known as overmacht (keadaan memaksa) in Indonesian law.