Legal Analysis of Default Indemnity Due to "Force Majeure" on Banking Credit Providers in the Covid-19 Pandemic

This study examines default due to the covid-19 pandemic, which is a force major that can cancel a banking credit agreement and to analyze the conditions for a force major to cancel a banking credit agreement made by the parties. The study was conducted using the case approach used in this paper, aiming to examine and analyze the application of norms or rules carried out in legal practice, especially cases related to working capital credit agreements that experienced bad credit due to force majoure circumstances. The results show that the cancellation of the agreement on banking credit due to the Pandemic -19 is a relative "force majaure" which means that this relative "force majaure" the debtor is considered capable of returning to its original state or in other words the debtor is considered to still have the ability to fulfill the contents agreement when the Pandemic-19 situation has ended. As for the condition that a force majeure can cancel the banking credit agreement made by the Parties, that is, if the parties in the agreement clause specify using any event that is included as "force majaure" if the Pandemic-19 is stated in the agreement as "force majaure" then one of the parties can postpone or cancel the agreement.