Open AccessBusiness Relationships between Corporations and Distributors: A Study of Petroleum Business Law in Indonesia
Author(s) -
Budi Santoso
Publication year - 2021
Publication title -
international journal of criminology and sociology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.181
H-Index - 6
ISSN - 1929-4409
DOI - 10.6000/1929-4409.2021.10.84
Subject(s) - agency (philosophy) , business , principal–agent problem , indonesian , law , law and economics , industrial organization , finance , economics , sociology , social science , corporate governance , political science , linguistics , philosophy
The paper aims to analyze the business relationship in LPG (Liquefied Petroleum Gas) distribution and marketing in Indonesia as it has an important and strategic role for most Indonesian people. By using a juridical and empirical approach, the results showed that Pertamina is a state-owned company that assigns LPG duties to the end-user. To reaches the end-user needed by another intermediary, namely an agent. The legal relationship between Pertamina and the agent is stipulated in the agency contract. Form the theory side, it is necessary to research whether the agency contract is based on the basic principles of agency law or not. The incompatibility of an agency contract with the basic principles of agency law caused the contract not to have legal force. The contribution of this research is its examination of the legal validity of the agency contract of Pertamina with the agent and to provide a legal opinion from the agency theory side which should be the basis for making agency contracts.