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Reconstruction of the Principle of Proportionality in Contract Law within the Palm Oil Plantation Sector

Journal of Law and Legal Reform · Vol. 7 No. 1 (2026) · hlm. 23–76

DOI
10.15294/jllr.v7i1.36219
ISSN
2715-0968, 2715-0941
Terbit
2026-01-26
Penerbit
Faculty of Law, Universitas Negeri Semarang, Indonesia
Bahasa
eng
Lisensi
creativecommons.org/licenses/by-nc-sa/4.0

Abstrak

This paper investigates the urgent need to reconstruct the principle of proportionality within contracts for palm oil partnerships, where structural power imbalances, information asymmetry, opaque financing arrangements, and unilateral sanction mechanisms systematically disadvantage plasma smallholders. The study aims to identify the fundamental factors that hinder the effective application of proportionality in oil palm partnership and to formulate an operational framework capable of ensuring contractual justice within highly asymmetric agribusiness relationships. Employing a normative juridical method complemented by conceptual, comparative, and socio-legal approaches, this research analyses Indonesian contract law, institutional practices, and international regulatory models drawn from Malaysia, Thailand, and India. The findings reveal that the proportionality principle in Indonesia remains largely abstract and lacks enforceable parameters, enabling exploitative contractual clauses such as undisclosed deductions, disproportionate risk distribution, and one-sided penalties to persist in nucleus plasma schemes. Comparative insights demonstrate that proportionality can be translated into practice through mandatory disclosure obligations, standardized minimum clauses, equitable risk-sharing mechanisms, contract registration, and accessible local dispute-resolution systems. The principal novelty of this study lies in proposing a three-pillar operational model of proportionality substantive, procedural, and sanction-based integrated with institutional governance reforms and community empowerment strategies. The paper concludes that reconstructing proportionality requires both normative refinement and structural intervention across negotiation processes, corporate procurement practices, evidentiary mechanisms, and state oversight. This integrated framework provides a concrete basis for embedding substantive justice within palm oil agreements and strengthening legal protection for structurally weaker parties.

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  • Universitas Jambi
  • Andalas University
  • Institut Islam Maarif Jambi
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Rekan penulisOrganisasiArtikel bersama
ZulfadliAfiliasi tidak diketahui1
Elita RahmiUniversitas Jambi1
Pahlefi PahlefiUniversitas Jambi1
Lili Naili HidayahUniversitas Jambi1
Windarto WindartoUniversitas Jambi1
M. Fakri PutraUniversitas Jambi1
Tengku Maizura HakimUniversitas Jambi1
Dini SuryaniUniversitas Jambi1
Umar HasanUniversitas Jambi1
Aprilia Pitri NRUniversitas Jambi1
Faizah BafadhalUniversitas Jambi1
Chaca Tiara Indah SartikaUniversitas Jambi1
Muhammad Amin QodriUniversitas Jambi1
Muhamad RidhoUniversitas Jambi1
Windarto WindartoUniversitas Jambi1
Muhammad Ali RidhoAndalas University1
Sulhi Muhamad Daud Abdul KadirUniversitas Jambi1
Muhammad Randhy MartadinataInstitut Islam Maarif Jambi1

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Sumber metadata: OAI-PMH (metadata jurnal) https://journal.unnes.ac.id/journals/jllr/oai, pertama di-harvest 6 Nov 2026, terakhir terlihat 8 Nov 2026.
Metadata asli (oai_dc) 
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	<dc:title xml:lang="en">Reconstruction of the Principle of Proportionality in Contract Law within the Palm Oil Plantation Sector</dc:title>
	<dc:creator xml:lang="en">Sayuti, Ageng Triganda</dc:creator>
	<dc:creator xml:lang="en">Nurdin, Zefrizal</dc:creator>
	<dc:creator xml:lang="en">Rembrandt, Rembrandt</dc:creator>
	<dc:creator xml:lang="en">Syofiarti, Syofiarti</dc:creator>
	<dc:subject xml:lang="en">Proportionality Principle</dc:subject>
	<dc:subject xml:lang="en">Contract Law</dc:subject>
	<dc:subject xml:lang="en">Palm Oil Partnership</dc:subject>
	<dc:subject xml:lang="en">Socio Legal Study</dc:subject>
	<dc:subject xml:lang="en">Contractual Justice</dc:subject>
	<dc:description xml:lang="en">This paper investigates the urgent need to reconstruct the principle of proportionality within contracts for palm oil partnerships, where structural power imbalances, information asymmetry, opaque financing arrangements, and unilateral sanction mechanisms systematically disadvantage plasma smallholders. The study aims to identify the fundamental factors that hinder the effective application of proportionality in oil palm partnership and to formulate an operational framework capable of ensuring contractual justice within highly asymmetric agribusiness relationships. Employing a normative juridical method complemented by conceptual, comparative, and socio-legal approaches, this research analyses Indonesian contract law, institutional practices, and international regulatory models drawn from Malaysia, Thailand, and India. The findings reveal that the proportionality principle in Indonesia remains largely abstract and lacks enforceable parameters, enabling exploitative contractual clauses such as undisclosed deductions, disproportionate risk distribution, and one-sided penalties to persist in nucleus plasma schemes. Comparative insights demonstrate that proportionality can be translated into practice through mandatory disclosure obligations, standardized minimum clauses, equitable risk-sharing mechanisms, contract registration, and accessible local dispute-resolution systems. The principal novelty of this study lies in proposing a three-pillar operational model of proportionality substantive, procedural, and sanction-based integrated with institutional governance reforms and community empowerment strategies. The paper concludes that reconstructing proportionality requires both normative refinement and structural intervention across negotiation processes, corporate procurement practices, evidentiary mechanisms, and state oversight. This integrated framework provides a concrete basis for embedding substantive justice within palm oil agreements and strengthening legal protection for structurally weaker parties.</dc:description>
	<dc:publisher xml:lang="en">Faculty of Law, Universitas Negeri Semarang, Indonesia</dc:publisher>
	<dc:date>2026-01-26</dc:date>
	<dc:type>info:eu-repo/semantics/article</dc:type>
	<dc:type>info:eu-repo/semantics/publishedVersion</dc:type>
	<dc:format>application/pdf</dc:format>
	<dc:identifier>https://journal.unnes.ac.id/journals/jllr/article/view/36219</dc:identifier>
	<dc:identifier>10.15294/jllr.v7i1.36219</dc:identifier>
	<dc:source xml:lang="en">Journal of Law and Legal Reform; Vol. 7 No. 1 (2026): January, 2026; 23-76</dc:source>
	<dc:source>2715-0968</dc:source>
	<dc:source>2715-0941</dc:source>
	<dc:source>10.15294/jllr.v7i1</dc:source>
	<dc:language>eng</dc:language>
	<dc:relation>https://journal.unnes.ac.id/journals/jllr/article/view/36219/8288</dc:relation>
	<dc:rights xml:lang="en">Copyright (c) 2026 Ageng Triganda Sayuti, Zefrizal Nurdin, Rembrandt Rembrandt, Syofiarti Syofiarti (Author)</dc:rights>
	<dc:rights xml:lang="en">https://creativecommons.org/licenses/by-nc-sa/4.0</dc:rights>
</oai_dc:dc>