Simamora, Yohanes Sogar
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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.
Binding Power of Dispute Board Judgment in Construction Dispute Settlement Yudhantaka, Lintang; Simamora, Yohanes Sogar; Ghansham Anand
Yuridika Vol. 38 No. 1 (2023): Volume 38 No 1 January 2023
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/ydk.v38i1.42717

Abstract

Construction work in its implementation is carried out based on a contract. If there are problems in carrying out construction work, a dispute between the parties, in this case the service user and the service provider, will occur. Indonesia Law No. 2/2017 about Construction Services (hereafter called UU 2/2017) provides a new dispute resolution model option if problems occur in the construction sector, namely through the Dispute Board. The Dispute Board was created by the International Federation of Consulting Engineers / Federation Internationale des Ingenieurs-Conseils or FIDIC which was adopted into UU 2/2017. However, the regulation regarding the Dispute Board in UU 2/2017 needs to be studied further, especially regarding the nature of the final binding decision, because it still raises problems in its implementation. The purpose of this study is to examine the development of dispute resolution in the field of construction and the implementation of the final and binding nature of dispute board decisions. This study employed legal research methods with a conceptual and statute approach. The results of this study found that construction disputes can be resolved through litigation or non-litigation. The presence of the Dispute Board still does not provide legal certainty for the parties because the nature of the decision is final and binding but is not supported by an implementation mechanism.