Freedom of contract is embedded to each individual involved in a contract making. When it is related to a contract between government and its partner, the contract should bring equity and justice to both parties, and no one should be harmed or disadvantaged. This is categorised as normative juridical research with statute and conceptual approaches. The primary legal data obtained involved Article 1338 Paragraph (1) of Civil Code concerning the principles of freedom of contract. The conceptual approach, however, is closely related to defining the concept of freedom of contract. The freedom of contract is defined as the contract that still refers to the scope in which it is not against the law, public order, morality, and appropriateness. The freedom of contract itself is intended to bring welfare for society