IMPLEMENTATION OF THE PRINCIPLE OF GOOD FAITH IN THE IMPLEMENTATION OF RENTAL AGREEMENTS IN INDONESIA

Abstract

This study examines the implementation of the principle of good faith in the implementation of lease agreements in Indonesia, both in legal practice and its influence on the legal protection of the parties. Normatively, the principle of good faith is regulated in Article 1338 paragraph (3) of the Civil Code, which requires every agreement to be implemented with honesty, justice, and propriety. However, in reality, the implementation of this principle in lease agreements still faces many obstacles, ranging from the use of standard clauses, imbalance in bargaining position, to the weak understanding of the parties regarding the principle.

This study uses a normative legal research method with a statutory, conceptual, and jurisprudential approach. Legal materials are analyzed qualitatively to examine the extent to which the principle of good faith is implemented in leasing practices, both in the housing sector, commercial property, vehicles, and heavy equipment. The results of the study indicate that violations of the principle of good faith often occur, both by owners and tenants, which have an impact on the emergence of legal disputes.

In addition, this study found that the role of judges in enforcing the principle of good faith is still inconsistent, although a number of Supreme Court decisions have emphasized the importance of this principle as a controller of the content and implementation of contracts. Therefore, it is necessary to update the law, strengthen the capacity of judges, and increase the role of notaries and advocates in preparing balanced agreements. It is hoped that the implementation of the principle of good faith more optimally will improve justice, legal certainty, and protection of the rights of the parties in lease agreements in Indonesia.