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Legal Analysis of the Replacement of Retention Money with Retention Bond in Ongoing Wibowo, Singgar Mataniari; Sami’an, Sami’an; Hardjomuljadi, Sarwono
International Journal of Law Policy and Governance Vol. 4 No. 2 (2025)
Publisher : Asosiasi Dosen Peneliti Ilmu Ekonomi dan Bisnis Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.54099/ijlpg.v4i2.1225

Abstract

Purpose –This study aims to analyze the legal basis related to Retention Money and Retention Bond in construction contract practices and provisions regarding the implementation of the transition from Retention Money to Retention Bond in ongoing contracts. Methodology/approach –This study uses a qualitative approach with analysis of contract documents, applicable legal regulations, and technical data related to the project. It also analyzes additional information obtained through previous literature reviews. Findings –In Retention Money, the Owner will directly withhold payment for the work until an agreed amount is reached, but in the development of construction this will certainly hinder the investment capabilities of the party implementing the work. Novelty/value –Considering the risks that may occur during the construction period, and ensuring the ability to carry out the work during the Defect Notification Period, retention is usually required. In its development, Retention Bond can be used to protect the Owner against the failure of the work implementer to perform after the work is carried out (Taking Over Certificate). Retention Bond can be constructed as an accessoir agreement, namely an additional or accompanying agreement and cannot stand alone without a preceding principal agreement.
Limitation of Authority of the BANI Arbitration Center in Government Construction Contract Disputes within the Electricity Sector Pasaribu, David Mangara; Winada, Erik; Sungkara, Fajar; Sitompul, Wesleyzon; Wibowo, Singgar Mataniari; Hardjomuljadi, Sarwono; Sami’an, S.
SIGn Journal of Social Science Vol 6 No 2: Desember 2025 - Mei 2026
Publisher : CV. Social Politic Genius (SIGn)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.37276/sjss.v6i2.589

Abstract

Electricity infrastructure development is a national strategic sector directly intersecting with energy sovereignty and public interest. Therefore, construction contract disputes therein involve an intersection between private law and public law regimes. This research aims to critically analyze the basis of BANI’s legitimacy and the limitations of its authority in resolving government-construction contract disputes in the electricity sector. This is intended to guarantee the protection of energy sovereignty and the principle of legality in government administration. The research method applied is a normative juridical approach using the statute, conceptual, and case approaches, with a prescriptive, deductive syllogism analysis technique. The research results indicate that BANI’s legitimacy is derivative and limited. The arbitration institution lacks the adjudicative authority to review the validity of state administrative decisions or to set aside public electricity safety standards. These findings assert that BANI’s role must be reconstructed to remain within the corridor of purely commercial aspects without exceeding the administrative authority of public officials (ultra vires) in managing national strategic infrastructure. In conclusion, the limitation of arbitration authority is a manifestation of the limited delegation of authority doctrine, necessary to maintain state administration accountability while providing legal certainty for energy investment. This reconstruction makes a theoretical contribution by harmonizing party autonomy in civil law with legal sovereignty in the realms of Constitutional Law and State Administrative Law.