Intercalating Law as a Tool to Promote Economic Efficiency in Indonesia

Mar 21, 2021 Regulatory Governance

By: Fajar Sugianto, Tomy Michael Saragih

134-235-2-PB

Read Full Article here:

https://arenahukum.ub.ac.id/index.php/arena/article/view/134

Indonesia as a Rechtsstaat like any other developing countries, its society is based on patterns and economic classes, overall obedience to the law is not easy. In heterogeneous society formed of groups based on religion, race, language, and wealth, it is one of the most difficult unifying factors in terms of compliance with the law. Conflict of interest tend to make any law may be resisted. As a consequence being a Rechtsstaat, the greatest difficulty is to produce efficient legal outcomes and consistency of legal practice. At this point, the law and economics offers economic efficiency as a framework to model effective legal outcome and common purposes to widely unify disparate areas of legal activities. The primacy of efficiency helps to harmonise the practice of law with social practices. When such law exists, it does function as a social tool aiming at the promotion of economic efficiency that goes well with other social practices. Efficiency in law simplifies how law works in different society, especially in heterogeneous communities. This approach does not reduce law to economics (or vice versa, for that matter), it claims simply that law and economics have a lot to learn from one another.

Artikel ini diterbitkan dalam Jurnal Arena Hukum, Vol. 6, No. 2, 2013.

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