Obstacles to Contract Enforcement in Indonesia

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The Australia-Indonesia Comprehensive Economic Partnership (IA-CEPA) came into force in 2020 but foreign investment in Indonesia has consistently failed to meet targets, largely due to concerns about the lack of reliable and just judicial contract enforcement. This project aims to investigate why predictable and fair contract enforcement in Indonesia is so inaccessible, particularly for foreign investors, and, through doctrinal and empirical research, explain the causes of this situation. In partnership with Indonesian courts and lawyers, it also aims to support the development of legal and policy reform proposals that can help resolve Indonesia’s commercial contract enforcement problems and encourage Australian investment there.