Pure Economic Loss in Indonesia: Shall It Be Abandoned or Adopted?

DOI

10.2991/aebmr.k.200321.003How to use a DOI?

Keywords

pure economic loss, negligence, compensation, perbuatan melawan hukum

Abstract

For almost 25 years, pure economic loss has become the biggest controversy in tort law, as there has not been unified views whether the court shall granted or rejected pure economic loss claim. Pure economic loss occurred when negligence causes third party merely financial or economic loss. This journal will provide interesting cases in Indonesia that can be categorized as pure economic loss. Furthermore, this journal will further explain some views against the conceptual and applicability of pure economic loss, generally such rejection is based on: foreseeability principle, absolute versus relative rights, the floodgates, the floodgates in conjecture and geography. On the contrary, those who agree to pure economic loss claim that pure economic loss shall be limited by law or compensate within contract law regime. Subsequently, this journal will provide law and economics approach and some legal scholar’s opinion over pure economic loss. In conclusion, Indonesia law practitioners, especially legislatures and judges shall recognize the danger of pure economic loss and determine at what extend pure economic loss is allowed under Indonesian law.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Abdul Salam
AU  - Dennis Evan
PY  - 2020
DA  - 2020/03/27
TI  - Pure Economic Loss in Indonesia: Shall It Be Abandoned or Adopted?
BT  - Proceedings of the 3rd International Conference on Law and Governance (ICLAVE 2019)
PB  - Atlantis Press
SP  - 17
EP  - 22
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200321.003
DO  - 10.2991/aebmr.k.200321.003
ID  - Salam2020
ER  -