Implications of the COVID-19 Pandemic as an Overmacht in Credit Agreements

Abstract ―​

This study aims to discuss whether the Covid-19 pandemic can be classified as a force majeure event (Overmacht) in a credit agreement. This study uses a normative juridical method which is by conducting a literature study of legal materials obtained from the law, literature and other books related to this study. From the results of research that has been carried out, it is clear that the policies implemented during the Covid-19 pandemic have not gone well. This is indicated by the continued decline in the community's economy so the prestasi/ duties in the agreements are not fulfilled. Many parties are involved in the agreement, one of them is the debtor in the credit agreement, who has failed to pay by using the excuse of a force majeure event (Overmacht) to avoid responsibility for compensation. This Covid-19 pandemic can indeed be classified as a force majeure event (Overmacht) as long as the debtor can prove the reasons he stated to the creditor through several things, namely 1) An unexpected event occurred, 2) Events that occurred beyond his control/fault, and 3) some events that prevent the debtor from fulfilling his duties.