Business Law Perspective on Economic Recession in Indonesia

Abstract

Currently, Indonesia is wary of rising interest rates that have the potential to cause financial market turmoil. The Minister of Finance projects that the world economy will experience an economic recession in 2023. The increase in interest rates by the central banks of countries in the world has the potential to cause a global recession. An economic recession can trigger a decline in corporate profits, increased unemployment, and even economic bankruptcy. This resulted in reduced employment opportunities and many employees were laid off. Without human activity and mobility, the wheels of the economy are stuck. Methods This study uses a normative, sociological and phenomenological legal approach that focuses on the role of law in the economic recession in Indonesia. The results of the study indicate that in the perspective of business law as an effort to stop the worrying economic recession, economic actors must be aware and understand that the main goals of business entities are basically not only profitability and growth, but also image and business ethics. To resolve disputes, it is expected to use 2 (two) approaches, namely the litigation paradigm and the non-litigation paradigm.