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Journal : Interdisciplinary Social Studies

Legal Protection for Contractors Against Unilateral Termination by the Employer under Construction Contracts Moh. Choiru Syahil; Samian Samian; Sarwono Hardjomuljadi
Interdisciplinary Social Studies Vol. 5 No. 1 (2025): Regular Issue: October-December 2025
Publisher : International Journal Labs

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55324/iss.v5i1.973

Abstract

This study examines legal protection for service providers against unilateral contract termination by service users in the construction sector in Indonesia. This problem arises from the imbalance in the legal and economic positions between the parties, as well as weak legal regulations that provide room for broad interpretation for service users. This study uses a normative juridical method with a statutory, conceptual, case, and comparative legal approach. The analysis was conducted on the Civil Code (KUHPerdata), Law Number 2 of 2017 concerning Construction Services, and Presidential Regulation Number 16 of 2018, then compared with the legal systems of the European Union, China, and South Korea. The results of the study indicate that legal protection in Indonesia is still administrative and formalistic, not guaranteeing proportional contractual justice for service providers. Therefore, this study recommends a balanced contractual protection model, which emphasizes compensation obligations, the principle of good faith, and the establishment of an independent contract mediation institution as a solution towards a fair, transparent, and sustainable contractual legal system.
Comparative Analysis of the FIDIC Red Book Contract 2017 (Reprinted 2022) and the Indonesian National Construction Contract Wahyu Moerhadi Nugroho; Sami’an Sami’an; Sarwono Hardjomuljadi
Interdisciplinary Social Studies Vol. 5 No. 1 (2025): Regular Issue: October-December 2025
Publisher : International Journal Labs

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55324/iss.v5i1.974

Abstract

The landscape of construction projects in Indonesia is becoming increasingly complex with the growing involvement of international funding and foreign contractors. The FIDIC Red Book 2017 has become the dominant global standard, while Indonesia operates under its own national construction law framework. This study aims to comparatively analyze the principles, mechanisms, and risk allocation in the FIDIC Red Book 2017 (Reprinted 2022) and the Indonesian national construction contract framework as reflected in the Construction Services Law and its derivative regulations. Using a normative literature study with a comparative law approach, the research identifies fundamental philosophical differences in risk management. FIDIC emphasizes fairness, balanced risk allocation, and structured procedural mechanisms (FIDIC, 2022; Soekotjo, 2019), whereas Indonesia’s national regulations tend to favor the Employer (government) with limited contractual flexibility (LKPP, 2021). The key findings lie in differences related to claim mechanisms, the role of the Engineer, and dispute resolution processes. This study contributes by providing a systematic comparative mapping useful for stakeholders—especially in hybrid international–national projects—and offers recommendations for harmonizing and improving contractual frameworks in Indonesian construction practice.
Retention in Construction Contracts: Legal Analysis and Implementation Practices in Indonesia Dina Silviana; Sarwono Hardjomuljadi; Sami’an Sami’an; Anik Kunantiyorini
Interdisciplinary Social Studies Vol. 5 No. 1 (2025): Regular Issue: October-December 2025
Publisher : International Journal Labs

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55324/iss.v5i1.984

Abstract

Retention is a mechanism for withholding part of payments in construction contracts that is used to ensure the fulfillment of work maintenance obligations. In practice, retention often raises disputes, especially regarding late payments, detention without legitimate reasons, or unclear terms for release of retention. This study analyzes the legal position of retention, the legal basis that requires its payment, and the implications of default when retention is still withheld after the work is declared completed through the Final Hand Over (FHO). The research uses a literature study method on the Civil Code, the Construction Services Law, the FIDIC Red Book, procurement document standards, and contract law literature. The results of the study show that retention is a legal part of a contractual agreement that is subject to the principle of pacta sunt servanda based on Article 1338 of the Civil Code. Retention detention without a legal basis after the issuance of the FHO constitutes a default, which results in the obligation to pay retention along with compensation in accordance with Article 1243 of the Civil Code. The research concludes that the retention payment is an absolute obligation that must be fulfilled and its violation entitles the Contractor to demand performance and compensation.
Principle of Equality and Force majeure Clause: A Study of Standard Contracts in the Indonesian Government Construction Sector Kodrat Insany Taqwim; Sarwono Hardjomuljadi; Sami'a Samian
Interdisciplinary Social Studies Vol. 5 No. 1 (2025): Regular Issue: October-December 2025
Publisher : International Journal Labs

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55324/iss.v5i1.989

Abstract

This research investigates the implementation of the principle of equality in force majeure clauses under Indonesian government construction standard contracts, namely those regulated by the General Conditions of Contract (SSUK). The research is based on the idea that the risk-sharing in public construction contracts is still not fair. Contracting authorities (PPK) have most of the ability to interpret the contracts, while contractors have very few options when it comes to negotiating the conditions. A normative legal method was used, which included legislative, conceptual, and case methods. The examination encompasses the Indonesian Civil Code, the Construction Services Law, the Ministry of Public Works and Housing Regulation No. 14 /2020, and foreign standards such as FIDIC. The study identified seven structural imbalances in force majeure provisions: (1) outdated risk definitions unsuitable for modern challenges like pandemics and cyber-attacks, (2) rigid and ambiguous notification procedures that disadvantage contractors, (3) disproportionate time extension calculations ignoring chain effects, (4) absence of cost compensation mechanisms for uncontrollable risks, (5) unilateral interpretation authority vested in PPK without independent review, (6) lack of transparent risk allocation matrices, and (7) slow and ineffective dispute resolution mechanisms. These findings were confirmed through Supreme Court Decision No. 2241 K/Pdt/2020, which nullified contractor sanctions for flooding-related delays. The study recommends adopting adaptive risk definitions, establishing reasonable notification procedures (28-day standard), implementing cost compensation mechanisms, creating independent adjudication bodies, developing explicit risk allocation matrices, and streamlining dispute resolution processes to achieve contractual balance and good faith principles.
The Principle of Good Faith and Construction Disputes: a Study on Dispute Boards and Digital Transformation Dharma Teguh Pribadi; Samian Samian; Sarwono Hardjomuljadi; Putra Amantha Hasibuan
Interdisciplinary Social Studies Vol. 5 No. 1 (2025): Regular Issue: October-December 2025
Publisher : International Journal Labs

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55324/iss.v5i1.991

Abstract

This study examines the application of the principle of good faith in Indonesian construction contracts, highlighting the challenges it faces due to the technical complexity, high uncertainty, and financial risks inherent in construction projects. While the principle is affirmed in Article 1338 paragraph (3) of the Civil Code, its practical application remains unclear, often leading to disputes over delays, compensation claims, and unclear obligations. In modern construction contracts, particularly those based on international standards like FIDIC, good faith is emphasized as an operational principle, with dispute resolution mechanisms like Dispute Adjudication Boards supporting collaboration and early dispute resolution. However, empirical studies show that these boards are sometimes used for strategic delays and selective disclosures, highlighting the tension between theoretical principles and practical behavior. The study also explores how digitalization, through technologies like Building Information Modeling, audit logs, and blockchain, transforms project monitoring and verification, offering opportunities to redefine good faith as an objective, verifiable principle. This research aims to assess the role of good faith in construction contracts, dispute boards, and digitalization, providing insights into how digital tools can help objectify and enforce good faith in Indonesian construction practices.
Juridical Analysis of Abuse of Authority by Project Officials in the Perspective of Criminal Law Faal Murreyza D; Sami’an Sami’an; Sarwono Hardjomuljadi
Interdisciplinary Social Studies Vol. 5 No. 1 (2025): Regular Issue: October-December 2025
Publisher : International Journal Labs

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55324/iss.v5i1.1013

Abstract

Abuse of authority by project officials in construction works constitutes one of the primary patterns of corruption in public funds management. In practice, numerous cases demonstrate that budget users, delegated budget users, and commitment-making officials bear responsibility not only for tender decisions but also for controlling contract implementation, quality supervision, contract amendments, and payment approvals—creating opportunities for irregularities that result in state financial losses. This study analyzes the juridical construction of abuse of authority by project officials (Penyalahgunaan Wewenang oleh Pejabat Proyek) from the perspective of criminal corruption law, particularly Article 3 of Law No. 31 of 1999 as amended by Law No. 20 of 2001, in relation to the administrative framework under Law No. 30 of 2014 on Government Administration. Employing a normative juridical method with statutory, conceptual, and case approaches, it focuses on the Hambalang National Sport Training Center, e-KTP, and Banggai Laut Stadium projects. Findings reveal that (1) such abuse qualifies as corruption when involving deviation from authority's purpose, mens rea for undue benefit, and proven state losses; (2) boundaries between administrative misconduct and criminal corruption lack clear parameters; and (3) enforcement remains reactive, neglecting systemic governance improvements. Recommendations include clearer guidelines distinguishing errors from abuse, stronger oversight, and reforms to prevent corruption while protecting good-faith officials.
Strengthening The Role and Legal Protection of Commitment Making Officials in Government Goods/Services Procurement Yana Astuti; Samian Samian; Sarwono Hardjomuljadi
Interdisciplinary Social Studies Vol. 5 No. 1 (2025): Regular Issue: October-December 2025
Publisher : International Journal Labs

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55324/iss.v5i1.1021

Abstract

Commitment Making Officials (PPK) play a crucial role in the entire cycle of Government Procurement of Goods/Services (PBJP) in Indonesia, starting from planning, contract binding, to handing over work results. This strategic position, which is always related to decision-making with implications for state budget spending, makes the PPK very vulnerable to legal risks, both in the form of contract disputes, maladministration, and alleged corruption. This research aims to analyze the authority and responsibilities of the PPK in the PBJP and formulate a strategy for optimizing governance and legal protection for the PPK to prevent irregularities and minimize potential state losses. The research method used is normative juridical with a legislative approach and a conceptual approach. The results of the study show that optimizing the role of PPK requires: strengthening managerial and legal competence; structuring of work mechanisms that are more accountable and transparent; and the formation of a professional support team (legal, technical, and financial) as an instrument to mitigate legal and financial risks for the PPK in the implementation of the PBJP contract.