Studies from Faculty of Law in the Area of Social Science Described (Juridical Study of Indemnity Letter Position in Resolving the Risk of Loss on the Surety Bond Agreement)

NewsRx Policy and Law Daily

2020 JUL 16 (NewsRx) -- By a News Reporter-Staff News Editor at NewsRx Policy and Law Daily -- Investigators publish new report on social science. According to news originating from the Faculty of Law by NewsRx correspondents, research stated, “Surety Bond is a letter of guarantee issued by the insurance company and the guarantee company, in accordance with regulation of the President of the Republic of Indonesia number 16 of 2018 concerning the procurement of goods/services government. The alliance in the surety bond is the bearing on which the surety will pay the value of the loss to the obligee when there has been a loss and for that there has been claims.”

The news reporters obtained a quote from the research from Faculty of Law: “On the other hand, the principal with the indemnity letter will pay back to the surety a certain amount of loss that has been paid. Although Law No. 40 of 2014 on insurance and Law No. 1 of 2016 on guarantee to be the basis of surety bond law as a guarantee of procurement of goods/services, but in the two laws are not stipulated further on the implementation of Surety bond and settlement of claims in the surety bond itself. This research aims, first, to analyze the position of indemnity letter in overcoming the risk of loss on the surety and analyzing the role of notary in the creation of indemnity letter agreements. The method used is a normative legal research method using legislation approaches, conceptual approaches and analytical approaches.”

According to the news editors, the research concluded: “The result of this research is, the position of indemnity letter to overcome the risk of loss on the surety has an important role that is as a guarantee for the surety to get the compensation payment from principal together with Indemnitor. Secondly, the role of notary in the making of indemnity letter as an authentic deed with the aim that indemnity letter that has an important meaning for surety to get certainty of indemnity from principal, has binding legal force and provides legal protection for the parties to ensure the implementation of surety bond agreement in particular can protect the risks that may be experienced by the surety.”

For more information on this research see: Juridical Study of Indemnity Letter Position in Resolving the Risk of Loss on the Surety Bond Agreement. International Journal of Multicultural and Multireligious Understanding, 2020,7(5):404-412. (International Journal of Multicultural and Multireligious Understanding - http://ijmmu.com). The publisher for International Journal of Multicultural and Multireligious Understanding is International journal of multicultural and multireligious understanding.

A free version of this journal article is available at https://doi.org/10.18415/ijmmu.v7i5.1692.

Our news journalists report that more information may be obtained by contacting Ni Nyoman Novia Komala Dewi, Graduate Program Student in Notary, Faculty of Law, Mataram University. Additional authors for this research include Hirsanuddin Hirsanuddin, Muhaimin Muhaimin.