Increasing Economic Performance Through the Rule of Law in Indonesia: Law and Economics Perspective
By: Fajar Sugianto
125940525Read Full Article here:
https://www.atlantis-press.com/proceedings/icleh-20/125940525
In the globalisation era, laws are forced and challenged to be able to adapt. Not only from economists, but lawyers also are hungry for the primacy of efficiency and start to duplicate the way most economists think, such as, in explicating efficiency and progressiveness of the rule of law. From law and economics perspectives, the rule of law shall provide clarification in order to improve its practices. The general theory is that law is best viewed as a social tool that promotes economic efficiency. With economic approach, efficiency is an ideal model that guides legal practice. In terms of the rule of law, law and economics considers how efficient rules produce the quality of law. This writing has answered three issues: first, how rationality affects people’s behaviour within legal situations. Second, how collective behaviour should have effect on legal rules. Third, understanding and planning strategic actions in the legal context.Since all economic activities regulated by the law, therefore, Indonesian laws need to promote economic efficiency in at least two ways: structure the law in order to remove impediments that encourages private bargaining; and structure the law to minimise the harm caused by failures in private bargaining.
Artikel ini merupakan bagian dari Proceedings of the International Conference on Law, Economics and Health (ICLEH 2020)