Comparative Analysis of Penalty Clauses in Civil Contracts: Enhancing Legal Certainty and Substantive Justice in Indonesian Law

Abstract Penalty clauses in civil contracts serve as a preventive mechanism against breach of contract and as a legal protection tool for the aggrieved party. However, the Indonesian Civil Code (KUHPerdata) does not explicitly regulate such clauses, resulting in legal uncertainty and inconsisten...

Full description

Saved in:
Bibliographic Details
Main Authors: Lely Sulthoniah, Djumikasih, Yenny Eta Widyanti
Format: Article
Language:Arabic
Published: Yayasan Pendidikan Islam dan Multikultural 2025-06-01
Series:International Journal of Islamic Education, Research and Multiculturalism
Subjects:
Online Access:https://journal.yaspim.org/index.php/IJIERM/article/view/540
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1849329098548051968
author Lely Sulthoniah
Djumikasih
Yenny Eta Widyanti
author_facet Lely Sulthoniah
Djumikasih
Yenny Eta Widyanti
author_sort Lely Sulthoniah
collection DOAJ
description Abstract Penalty clauses in civil contracts serve as a preventive mechanism against breach of contract and as a legal protection tool for the aggrieved party. However, the Indonesian Civil Code (KUHPerdata) does not explicitly regulate such clauses, resulting in legal uncertainty and inconsistent judicial practices. This study aims to comparatively analyze the regulation and implementation of penalty clauses in Indonesia, the United Kingdom (via the concept of liquidated damages), and Germany (through Strafklauseln). Employing normative, conceptual, case study, and comparative approaches, the findings reveal that Indonesia’s legal framework remains weak and heavily reliant on judicial discretion, in contrast to the more structured and proportionate approaches found in the UK and Germany. The study recommends a reformulation of Indonesia’s legal framework governing penalty clauses to strengthen legal certainty and ensure substantive justice. The novelty of this research lies in its cross-system legal analysis and emphasis on the need for contractual justice reform in Indonesian civil law. Keywords: Penalty Clause, Breach of Contract, Justice, Contract Law, Legal Comparison
format Article
id doaj-art-67f3b2d302e847c784c1e4b9843bafe8
institution Kabale University
issn 2656-3630
2722-7049
language Arabic
publishDate 2025-06-01
publisher Yayasan Pendidikan Islam dan Multikultural
record_format Article
series International Journal of Islamic Education, Research and Multiculturalism
spelling doaj-art-67f3b2d302e847c784c1e4b9843bafe82025-08-20T03:47:21ZaraYayasan Pendidikan Islam dan MultikulturalInternational Journal of Islamic Education, Research and Multiculturalism2656-36302722-70492025-06-017210.47006/ijierm.v7i2.540Comparative Analysis of Penalty Clauses in Civil Contracts: Enhancing Legal Certainty and Substantive Justice in Indonesian LawLely Sulthoniah0Djumikasih1Yenny Eta Widyanti2Universitas BrawijayaUniversitas BrawijayaUniversitas Brawijaya Abstract Penalty clauses in civil contracts serve as a preventive mechanism against breach of contract and as a legal protection tool for the aggrieved party. However, the Indonesian Civil Code (KUHPerdata) does not explicitly regulate such clauses, resulting in legal uncertainty and inconsistent judicial practices. This study aims to comparatively analyze the regulation and implementation of penalty clauses in Indonesia, the United Kingdom (via the concept of liquidated damages), and Germany (through Strafklauseln). Employing normative, conceptual, case study, and comparative approaches, the findings reveal that Indonesia’s legal framework remains weak and heavily reliant on judicial discretion, in contrast to the more structured and proportionate approaches found in the UK and Germany. The study recommends a reformulation of Indonesia’s legal framework governing penalty clauses to strengthen legal certainty and ensure substantive justice. The novelty of this research lies in its cross-system legal analysis and emphasis on the need for contractual justice reform in Indonesian civil law. Keywords: Penalty Clause, Breach of Contract, Justice, Contract Law, Legal Comparison https://journal.yaspim.org/index.php/IJIERM/article/view/540Penalty ClauseBreach of ContractJusticeContract LawLegal Comparison
spellingShingle Lely Sulthoniah
Djumikasih
Yenny Eta Widyanti
Comparative Analysis of Penalty Clauses in Civil Contracts: Enhancing Legal Certainty and Substantive Justice in Indonesian Law
International Journal of Islamic Education, Research and Multiculturalism
Penalty Clause
Breach of Contract
Justice
Contract Law
Legal Comparison
title Comparative Analysis of Penalty Clauses in Civil Contracts: Enhancing Legal Certainty and Substantive Justice in Indonesian Law
title_full Comparative Analysis of Penalty Clauses in Civil Contracts: Enhancing Legal Certainty and Substantive Justice in Indonesian Law
title_fullStr Comparative Analysis of Penalty Clauses in Civil Contracts: Enhancing Legal Certainty and Substantive Justice in Indonesian Law
title_full_unstemmed Comparative Analysis of Penalty Clauses in Civil Contracts: Enhancing Legal Certainty and Substantive Justice in Indonesian Law
title_short Comparative Analysis of Penalty Clauses in Civil Contracts: Enhancing Legal Certainty and Substantive Justice in Indonesian Law
title_sort comparative analysis of penalty clauses in civil contracts enhancing legal certainty and substantive justice in indonesian law
topic Penalty Clause
Breach of Contract
Justice
Contract Law
Legal Comparison
url https://journal.yaspim.org/index.php/IJIERM/article/view/540
work_keys_str_mv AT lelysulthoniah comparativeanalysisofpenaltyclausesincivilcontractsenhancinglegalcertaintyandsubstantivejusticeinindonesianlaw
AT djumikasih comparativeanalysisofpenaltyclausesincivilcontractsenhancinglegalcertaintyandsubstantivejusticeinindonesianlaw
AT yennyetawidyanti comparativeanalysisofpenaltyclausesincivilcontractsenhancinglegalcertaintyandsubstantivejusticeinindonesianlaw