THE APPLICATION OF THE PRINCIPLE OF FREEDOM TO CONTRACT IN THE PROCESS OF LEASING COMMERCIAL PREMISES (SHOP-HOUSES)

Azhar Basir, Mohamad Aldy Firdaus, Dicky Aditya, Eko Vitiyandono

Abstract


Ruko (shop houses) has become a popular business choice for entrepreneurs in Indonesia, but not all have the financial ability to purchase them, so they opt to lease instead. In the ruko leasing process, the principle of freedom of contract plays a crucial role as the legal basis for the parties to enter into a lease agreement, although its implementation faces challenges such as imbalanced bargaining positions and the potential for abuse of this principle. The purpose of this research is to analyze the application of the principle of freedom of contract in the commercial house (ruko) leasing process in Indonesia as well as the obstacles faced in its implementation. This research employs a normative legal research method with a statutory and conceptual approach to examine the application of the principle of freedom of contract in the ruko leasing process from the perspective of positive law in Indonesia. The legal sources consist of primary and secondary legal materials collected through library research and document studies, then analyzed using qualitative analysis techniques and presented in an analytical descriptive manner. The research findings reveal that the application of the principle of freedom of contract in the commercial house (ruko) leasing process in Indonesia is governed by the Indonesian Civil Code (KUHPerdata) and Law No. 20 of 2011 on Flats. Both parties, whether the ruko owner (lessor) or the lessee, have the freedom to determine the terms and conditions in the lease agreement, such as the lease term, rent amount, payment method, responsibilities of each party, and other mutually agreed upon provisions. However, the freedom to make such a ruko lease agreement is not absolute and must comply with the prevailing laws and regulations. Some of the main obstacles in implementing the principle of freedom of contract in the commercial house (ruko) leasing process in Indonesia are the imbalance of bargaining power between ruko owners and tenants, lack of legal understanding and awareness from the parties, potential for abuse of the principle of freedom of contract, difficulty in dispute resolution mechanisms, legal uncertainty and ambiguity in existing regulations, and lack of supervision and law enforcement over the ruko leasing process.


Keywords


Principle of Freedom of Contract, Shophouse Rentals, Imbalance of Bargaining Position, Abuse of Principle, Obstacles to Implementation.

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DOI: https://doi.org/10.24815/sklj.v8i1.38690

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