COVID-19 And Indonesia: Force Majeure And Other Considerations

The COVID-19 global pandemic has caused significant disruptions to businesses globally. The rapid rate of transmission, the unchecked growth in the number of cases and the lack of a vaccine has forced governments around the world to implement policies that have disrupted business operations globally.

In Jakarta, Governor Anies Baswedan declared a two-week state of emergency, beginning March 20, later extended by two weeks, in an attempt to contain the virus. The Jakarta administration has urged all businesses and organizations to close their offices or at the very least reduce the number of employees working in the office.

These actions will likely, if they have not already, cause contracts, agreements and transactions to be delayed or cancelled. Whether due to travel and import restrictions, supply and demand issues, and/or a lack of human resources, more and more businesses are finding it difficult to continue to operate and meet their contractual obligations.