An analysis of proportionality principles in profit-sharing investment agreement between BUMDes (Village-Owned Enterprises) Tirta Mandiri and Villagers as investor in Ponggok Village Polanharjo district Klaten regency

Abstract

The principle of proportionality requires a balance between the rights and obligations of the parties bound in an agreement or contract, where the nature of the contract is to realize the fairness of the exchange of rights and obligations so that the imbalance of results can be accepted as fair if the process of exchanging rights and obligations take place proportionally. In the profit-sharing investment agreement between BUMDes Tirta Mandiri and villagers as an investor in Ponggok Village, it is important to know how the mechanism of profit and loss sharing to make each party can receive it fairly so that it can be felt fair to maintain the continuity of the contract or agreement they made. Based on this case, the author would like to examine and analyze more in-depth concerning the principle of proportionality, whether it has worked well or animates in each article in the Investment Cooperation Agreement that applies the profit-sharing system. This study used a Normative Legal Research. The type of study when viewed from the perspective of its purpose was Legal Principles Research. Based on the result of study, it can be concluded that the principle of proportionality has tried to be done well in the profit-sharing investment cooperation agreement between BUMDes Tirta Mandiri and villagers as investor in Ponggok Village, Polanharjo District, Klaten Regency, especially in the phases or stages of contract formation, implementation of the contract and also in the event of a contract failure or a contract dispute, however, the principle of proportionality cannot work at all or is not carried out properly in the pre-contract phase or stage.