Pure Economic Loss in Indonesia: Shall It Be Abandoned or Adopted?

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For almost 25 years, pure economic loss has become the biggest controversy in tort law, as there has not been
unified views whether the court shall granted or rejected pure economic loss claim. Pure economic loss
occurred when negligence causes third party merely financial or economic loss. This journal will provide
interesting cases in Indonesia that can be categorized as pure economic loss. Furthermore, this journal will
further explain some views against the conceptual and applicability of pure economic loss, generally such
rejection is based on: foreseeability principle, absolute versus relative rights, the floodgates, the floodgates in
conjecture and geography. On the contrary, those who agree to pure economic loss claim that pure economic
loss shall be limited by law or compensate within contract law regime. Subsequently, this journal will provide
law and economics approach and some legal scholar’s opinion over pure economic loss. In conclusion,
Indonesia law practitioners, especially legislatures and judges shall recognize the danger of pure economic
loss and determine at what extend pure economic loss is allowed under Indonesian law.
Original languageEnglish
Title of host publication3rd International Conference on Law and Governance (ICLAVE 2019)
Publication statusPublished - 27 Mar 2020


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