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Lo, Adeline
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Law, Crime, Criminology & Criminal Justice

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Implikasi Hukum Wanprestasi Pemerintah pada Kontrak Pembangunan Pasar Ranggulalo: Analisis Putusan Nomor 28/Pdt.G/2021/PN Dgl Lo, Adeline; Lee, Elena Philomena; Chen, Natasya Edgina; Baretta, Nicole; Nugraha, Dwi Putra; Tanaya, Velliana
SIGn Jurnal Hukum Vol 7 No 1: April - September 2025
Publisher : CV. Social Politic Genius (SIGn)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.37276/sjh.v7i1.416

Abstract

Government Default in Construction Contracts executed under assistance task projects raises questions concerning accountability and legal certainty, as exemplified by the Ranggulalo Market construction case. This study aims to analyze the legal implications of the Sigi Regency Government’s Default and to identify how legal accountability for the outstanding contract payment was determined based on Decision Number 28/Pdt.G/2021/PN Dgl. A normative legal research methodology utilized case, statutory, and conceptual approaches through qualitative analysis of the court decision, pertinent regulations, and secondary legal materials. The analysis reveals that the court determined the Defendant had committed Default and was responsible for paying the outstanding contract balance—acknowledging the involvement of the Co-Defendant—despite complexities concerning the Commitment-Making Official’s mandate, predicated on the binding civil law nature of the contractual relationship. The principal legal implications arising from this Default include the imposition of direct financial obligations on the government, the disruption of the fundamental principle of contractual equilibrium, diminished legal certainty for service providers, and the emergence of administrative and institutional consequences for the regional government involved. In conclusion, this judgment affirms government accountability in civil contracts and underscores the judiciary’s vital role in upholding the pacta sunt servanda principle. Concurrently, it highlights the urgent need to refine regulations concerning assistance tasks and strengthen contract governance within regional government environments.
The Urgency of Applying Insolvency Test on General Corporate Bankruptcy under the Regime of Law Number 37 of 2004 Silalahi, Udin; Lo, Adeline; Chen, Natasya Edgina; Baretta, Nicole
SIGn Jurnal Hukum Vol 7 No 2: Oktober 2025 - Maret 2026
Publisher : CV. Social Politic Genius (SIGn)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.37276/sjh.v7i2.541

Abstract

Unlike the financial sector, which has been modernized through Law Number 4 of 2023, the bankruptcy regime for general corporate entities in Indonesia remains confined to formalistic requirements. This is rooted in Article 2 section (1) of Law Number 37 of 2004, which adopts the principle of presumption of insolvency, allowing a company to be declared bankrupt with merely two creditors and one matured debt. This process may occur without a material assessment of financial condition. This condition creates a legal loophole that allows creditors to misuse bankruptcy instruments as an aggressive debt-collection tool. This practice can result in solvent companies being terminated, as evidenced by the case analysis of PT Sritex, which was ultimately declared bankrupt. This study aims to analyze the urgency of applying the insolvency test as a substantive requirement for general corporate bankruptcy. Furthermore, this research examines the juridical obstacles to its implementation within the commercial court system. The research method employed is normative legal research using statute, conceptual, and comparative approaches regarding the Insolvency Act 1986 (UK) and the Bankruptcy Code (US). The results conclude that the primary obstacle to adopting the insolvency test is the conflict with the principle of summary proof (sumir) in Article 8 section (4) of Law Number 37 of 2004. Therefore, this study recommends legal reform through a hybrid approach. This model combines the cash flow test as an entry point and the balance sheet test as a defense mechanism. Another recommendation is the shifting of the burden of proof to the debtor to prove its solvency. This step aims to realize economic justice and prevent premature bankruptcy.
Co-Authors Baretta, Nicole Chen, Natasya Edgina Dwi Putra Nugraha Jur. M. Udin Silalahi Lee, Elena Philomena Velliana Tanaya