Abstract
General Background: Fish trading activities at the Sidoarjo Fish Auction Site (TPI Sidoarjo) commonly rely on oral agreements and mutual trust between borg and pengkulak. Specific Background: These transactions are frequently conducted without payment guarantees, particularly when trusted pengkulak receive payment terms that allow settlement after the fish has been sold. Knowledge Gap: Existing studies have discussed breach of contract, creditor protection, oral agreements, and fish trading practices, but limited attention has been given to the specific characteristics and legal risks of uncollateralized fish transactions at TPI Sidoarjo. Aims: This study examines breach of contract risks in fish trading without payment guarantees and analyzes the role of TPI supervisors in assisting dispute resolution. Results: Using an empirical socio-legal approach supported by statutory and conceptual approaches, the study draws on semi-structured interviews with 21 informants consisting of 10 borgs, 10 pengkulak, and 1 TPI supervisor. The findings show that oral agreements remain legally valid when the requirements of Article 1320 of the Indonesian Civil Code are fulfilled. The most common form of default is delayed payment, while total payment failure occurs less frequently. Delayed payment disrupts borgs' working capital, delays payments to fishermen, increases collection costs, and creates the possibility of accumulated or uncollectible receivables. TPI supervisors primarily facilitate deliberation without authority to impose legal sanctions. Novelty: The study connects empirical trading practices at TPI Sidoarjo with Indonesian contract law and the practical role of TPI supervision in dispute resolution. Implications: The findings highlight the need for more orderly transaction records, controlled payment terms, and continued good-faith fulfillment of contractual obligations.
Key Findings Highlights
Oral Transactions Remain Legally Valid Under Article 1320.
Delayed Payment Is the Dominant Form of Default.
TPI Supervisors Facilitate Deliberation Without Sanctioning Authority.
Keywords : Breach Of Contract, Fish Trading, Payment Guarantees, Contract Law, TPI Sidoarjo