PROPORTIONALITY OF JOINT OPERATIONAL COOPERATION AGREEMENT FOR THIRD PARTIES AND IUP HOLDERS IN MINING LAW IN INDONESIA

• Published in: Journal of legal, ethical and regulatory issues Vol. 24; pp. 1 - 10
• Main Authors: Yunus, Ahyuni, Ikbal, Muhamad, Nawi, Syahruddin, Rahman, Sufirman
• Format: Journal Article
• Language: English
• Published: London Allied Business Academies 01-01-2021
• Subjects: Agreements; Coal mining; Cooperation; Court decisions; Equal rights; Law; Minerals; Mining industry; Morality; Natural resources; Principles; Royalties; Indonesia
• ISSN: 1544-0036; 1544-0044

The proportionality measure of the exchange of rights and obligations in a joint operational Operational Cooperation is based on the values of equality (equitability), freedom, proportional distribution. Of course, it cannot be separated from the principles of accuracy (zorgvuldigheid), feasibility (redelijkheid; reasonableness), and appropriateness (bilijkheid; equity). The search for the meaning of proportionality is an uneasy process. It often overlaps in understanding the principle of balance. The focus of credit and proportionality direction cannot be separated from its existence in contract law. Proportionality is the embodiment of the doctrine of "contracted justice," which corrects the domination of the principle of freedom of contract, which creates injustice. Proportionality of Joint Operational Cooperation Agreements for Third Parties and IUP Holders In mining law in Indonesia, adhering to the principle of proportionality is not the principle offreedom of contract, which creates injustice especially third parties in the mining cooperation agreement. Therefore, joint operational makers can discard the attitude of showing that freedom of contract is the main principle in forming joint operations. Still, proportionality is the essential principle in building a cooperative operational Cooperation Agreement in the mining sector by making the principle of morality the basis for preparing an Operational Cooperation Agreement (joint operating). In realizing an excellent combined operation, proportional balance becomes an essential pillar in its formulation. Therefore, the importance of a balanced joint operational arrangement for the parties in the future and no longer making the principle of freedom of contract as an absolute that can be binding like law but can make the principle of proportionality the basis of morality formation of joint operations.