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Lien Rights: The Invisible Pillar Urgently Needed in Indonesia’s Construction Security System Regulation Adiwinata, Gianina Elizabeth; Simamora, Yohanes Sogar; Kurniawan, Faizal; Aristyawan, Patricia Anais; Nugraha, Xavier
Journal of Judicial Review Vol. 27 No. 2 (2025): December 2025
Publisher : Universitas Internasional Batam

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.37253/jjr.v27i2.11939

Abstract

Indonesia’s construction sector faces acute payment risk, particularly for subcontractors and suppliers positioned downstream in multi-tier contractual chains. Unlike many common law jurisdictions that mitigate this risk through statutory construction lien rights, non-possessory security interests that attach to the improved aset, Indonesia lacks an equivalent construction-specific proprietary protection, leaving payment security largely dependent on contract remedies and general security devices. This article examines (i) how construction lien regimes function as project-specific security mechanisms in selected common law jurisdictions and (ii) the normative and functional gap created by their absence in Indonesia, along with feasible accommodation pathways. Employing doctrinal (normative) legal research using statutory, conceptual, and comparative approaches, the study analyzes representative lien frameworks in North Dakota, Texas, and Ontario. The analysis finds that, despite jurisdictional variations, lien regimes share a regulatory core: lien rights arise upon performance, are made transparent through notice/registration systems, operate under calibrated priority rules, and are enforceable against the project asset through structured procedures. By contrast, Indonesia’s principal security instruments, Mortgage Rights (Hak Tanggungan) and Fiduciary Security (Jaminan Fidusia), are structurally ill-suited to secure progressively embedded construction value and to protect parties lacking privity with owners. The article concludes that strengthening Indonesia’s construction security framework requires a construction-specific proprietary mechanism, preferably statutory recognition of construction lien rights with carefully designed registration, time limits, and priority rules to balance contributor protection with owner and financier certainty.
Co-Authors Abdullah, Nurhidayah Adinda Prisca Anugerah Puteri Adiwinata, Gianina Elizabeth Agung Triayudi Agus Sekarmadji Agus Yudha Hernoko Aldiansyah, Komari Ali Maksum Aliansa, Wahyu Amanah Agustin Ardhana Christian Noventri Arif Wahyu Hidayat Aristyawan, Patricia Anais Ave Maria Frisa Katherina Ayik Parameswary Bagus Oktafian Abrianto Bart Jansen Christian Yulianto Rusli Cleoputri Yusainy Dany Miftahul Ula Darryl Evan Brouwer Debi Setiawati, Debi Dyah Devina Maya Ganindra Erni Agustin Fatmawati Fatmawati Ghansham Anand Hilda Yunita Sabrie Huzni Murad, Muhammad Syariqul Ilhami Ginang Pratidina Jusoff, Kamaruzaman Koko Srimulyo Komari Aldiansyah M. Hadi Subhan Maghfirah Aliefia Maradona Maradona Maradona, Maradona Maulani, Atiqoh Farhah Maulida, Vetty Silvana Moch. Marsa Taufiqurrohman Mohamad Nur Kholiq Mohd Ismail, Maria Mohd Sharil Nizam bin Md Radzi Muhammad Amirul Alfan Muhammad Anas Newa, Erni Rambu Nugraha, Xavier Ode Mohamad Man Arfa Ladamay Patricia Inge Felany Peter Mahmud Marzuki Pitriani, Winda Prastuti Sulistyorini Prastuti Sulistyorini Prawitra Thalib Qona’aha Noor Maajid Radian Salman Ramadhanti, Syifa Ramesh Nair Rizky Amalia Rizky Amalia Romadhona, Mochamad Kevin Salah, Mohammed Sapta Aprilianto Shintarini Kristine Setyobudi Simamora, Yohanes Sogar Siti Hafsyah Idris Sri Hajati Sri Hajati Suryantoro, Satriyo Dwi Syifa Ramadhanti Thabib, Prawitra Tobing, Sari Mellina Vincentius Gegap Widyantoro Wewi, Krisna Rambu Kaita Wisudanto Wisudanto Yula Anggriani Yulianto Rusli, Christian Yuniarti Yuniarti Zaky, Pradana Zuhairah Ariff Binti Abd Ghadas