Research Article
The Importance of Agency Law for Indonesia as a Fundamental for Fair Business Activity
@INPROCEEDINGS{10.4108/eai.29-6-2021.2312599, author={Budi Santoso}, title={The Importance of Agency Law for Indonesia as a Fundamental for Fair Business Activity}, proceedings={Proceedings of the 2nd International Conference on Law, Economic, Governance, ICOLEG 2021, 29-30 June 2021, Semarang, Indonesia}, publisher={EAI}, proceedings_a={ICOLEG}, year={2021}, month={10}, keywords={law agent principal indonesia}, doi={10.4108/eai.29-6-2021.2312599} }- Budi Santoso
Year: 2021
The Importance of Agency Law for Indonesia as a Fundamental for Fair Business Activity
ICOLEG
EAI
DOI: 10.4108/eai.29-6-2021.2312599
Abstract
This article aims to discuss the importance of agency law and assess whether or not Indonesia should have an agency law. The method used is normative juridical by prioritizing secondary data in the form of problematic agency regulations in Indonesia and comparing with agency regulations of others countries, especially the United States. Agents are an integral part of Indonesia’s business activities, whether small-scale businesses or large-scale businesses, especially foreign businesses, are entering Indonesia. Agency is a legal relationship between the power of authorizer (principal) and the authorized (agent) party and the potential for legal problems to arise. Indonesia currently does not have an agency law; this can result in the absence of legal certainty for resolving agency problems and no guarantee of a fair solution for the parties. This article considers the Indonesian government’s need to enact an agency law immediately.