ESTABLISHING JURISDICTION OF INDONESIAN COURTS IN TRANSNATIONAL CONTRACT CASE: A RESPOND TO GLOBAL ECONOMIC CHANGES
Herliana and Sujayadi

Faculty of Law
Gadjah Mada University

Abstract

The lack of certainty often exists in international contract because there are more than one jurisdictions involves. Contract enforcement is crucial to sustain economic growth. Efficient law enforcement will not be achieved without a well-functioning judiciary that resolves contract disputes in a speedy manner, predictable and accessible to the parties. To further develop the economy, Indonesian courts need to support contract law enforcement by having a clear parameter on how to establish jurisdiction over contract involving foreign elements. This would enhance the efficiency of the judiciary, which will result in improving business climate in the country.
This paper provides an analysis on how the court can establish its jurisdiction over transnational contract. It will look into the practice of the United States and the United Kingdom experiences. This is a juridical normative analysis that will use cases as the basis of the study. This paper argues that establishing jurisdiction over transnational contract is the starting point for legal protection for parties toward contract breach. Judges need to maintain consistency in determining courts^ jurisdiction towards international contract. When judges consistently apply the parameters, the problem of lack of certainty can be overcome accordingly.

Keywords: Transnational Contract, Court Jurisdiction, Judges

Topic: Law on Business, Business Competition, and Prohibition of Monopoly