Bambang Arwanto
Universitas Narotama, Indonesia

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When Contractual Breach Becomes Corruption: Legal Boundaries of Criminal Liability in Lump-Sum Public Procurement Ony Frengky Rumihin; Bambang Arwanto
Baileo: Jurnal Sosial Humaniora Vol 4 No 1: September 2026
Publisher : Universitas Pattimura

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.30598/baileofisipvol4iss1pp201-221

Abstract

This study examines the legal boundaries between contractual breach and criminal corruption in lump-sum public procurement. It addresses the tendency to transform deviations in contract performance, particularly alleged volume deficiencies, into findings of state financial loss and subsequently into grounds for criminal liability. Using a qualitative socio-legal approach with a doctrinal core, the study combines statutory, conceptual, and case-based analysis with an examination of institutional interpretations embedded in procurement audits and judicial reasoning. The findings demonstrate that contractual deviation, administrative irregularity, state financial loss, and criminal conduct constitute distinct categories of legal responsibility that should not be treated as automatically interchangeable. In lump-sum procurement, the application of volume-based assessment may generate legal misclassification when audit logic overrides the contractual structure and the legal characteristics of performance-based payment. The study proposes a Contract-to-Crime Boundary Framework that establishes sequential thresholds for distinguishing contractual, administrative, civil, and criminal liability. This framework constitutes the study's principal novelty by conceptualizing criminalization as an institutional process rather than an automatic consequence of procurement irregularities. The study recommends that socio-legal scholarship further examine how interactions among contractual practices, audit institutions, and criminal justice actors construct the legal meaning of corruption and shape the boundaries of criminal liability.
Law at the Boundary: Administrative Governance, Contractual Relations, and Criminalization in Public Construction Procurement Risma Marleno; Bambang Arwanto
Baileo: Jurnal Sosial Humaniora Vol 4 No 1: September 2026
Publisher : Universitas Pattimura

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.30598/baileofisipvol4iss1pp222-251

Abstract

Public construction procurement operates at the intersection of administrative governance, contractual relations, and criminal law, creating a persistent legal boundary problem when project irregularities are potentially criminalized as corruption. This study examines how judicial reasoning distinguishes administrative and contractual violations from conduct warranting criminal liability, focusing on the legal consequences of this boundary for accountability and legal certainty. Employing normative legal research with a socio-legal orientation, the study uses statutory, conceptual, case, and comparative approaches. Legal materials are analyzed through doctrinal thematic analysis focusing on administrative governance, contractual relations, criminal elements, causation, and judicial reasoning. The findings demonstrate that project delays, incomplete construction, procedural irregularities, and state financial losses do not, in themselves, establish criminal liability. Such failures may initially fall within administrative or contractual accountability, including sanctions, contract termination, delay penalties, performance guarantees, and blacklisting. Criminal liability requires proof of the statutory elements of corruption and a demonstrable causal connection between the defendant’s conduct and actual state financial loss. The study develops a boundary-based framework of graduated legal accountability, distinguishing administrative sanctions, contractual remedies, and criminal prosecution according to the legal character of the violation. This framework contributes to socio-legal scholarship by explaining how institutional interactions among government, market actors, contractual governance, and criminal justice shape the boundaries of criminalization.