The Principle of Freedom of Contract in Natural Resource Management Contracts: Key Points and Impacts

This study explores and utilizes the principle of freedom of contract in natural resource management contracts. By elaborating on the basic principles, key points, and their impact, this study is intended to provide insight into the importance of interpreting the principle of freedom of contract in the formation and execution of contracts in the field of natural resource management. A conceptual, statutory, and case approach is used in this research. This study was conducted by inventorizing, systematizing, and interpreting the relevant norms. This research argues that agreements made by the government with the private sector with the object of natural resources influence the application of the principle of freedom of contract. The theories used are agreement theory, authority theory, and responsibility theory. The results show that in the civil context, agreements are very private. Still, for natural resource objects, the principle of freedom of contract cannot be implemented freely in the contract, even though the agreement is made notarially. The practice of this principle is expected to be interpreted alongside the principle of good faith related to the object of the management agreement, which applies locally as part of the implementation of regional autonomy, nationally or internationally.