Proceedings of the 5th International Conference on Indonesian Legal Studies, ICILS 2022, 27-28 July 2022, Semarang, Central Java, Indonesia

Research Article

Transformation of Construction Contract Dispute Settlement Through Dispute Adjudication Board

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  • @INPROCEEDINGS{10.4108/eai.27-7-2022.2342462,
        author={Faizal  Kurniawan and Laila  Andaretna and Michael  Budianto and Ridho  Septarianto and Prawitra  Thalib},
        title={Transformation of Construction Contract Dispute Settlement Through Dispute Adjudication Board},
        proceedings={Proceedings of the 5th International Conference on Indonesian Legal Studies, ICILS 2022, 27-28 July 2022, Semarang, Central Java, Indonesia},
        publisher={EAI},
        proceedings_a={ICILS},
        year={2023},
        month={12},
        keywords={construction contract dispute adjudication board alternative dispute settlement},
        doi={10.4108/eai.27-7-2022.2342462}
    }
    
  • Faizal Kurniawan
    Laila Andaretna
    Michael Budianto
    Ridho Septarianto
    Prawitra Thalib
    Year: 2023
    Transformation of Construction Contract Dispute Settlement Through Dispute Adjudication Board
    ICILS
    EAI
    DOI: 10.4108/eai.27-7-2022.2342462
Faizal Kurniawan1,*, Laila Andaretna1, Michael Budianto1, Ridho Septarianto1, Prawitra Thalib1
  • 1: Faculty of Law Universitas Airlangga
*Contact email: faizal@fh.unair.ac.id

Abstract

The expansion of infrastructure in Indonesia parallels the growth of disputes over construction projects. The issuance of Law Number 2 Year 2017 on Construction Services mandates the existence of a Dispute Board to curb the escalation of construction disputes. However, its implementation remains unpopular. Addressing the said issue, this doctrinal research paper utilizes juridical-normative research methods with statute, conceptual, and comparative approaches. This paper aims to reform Indonesia's construction contract regime, by determining the role of the Dispute Adjudication Board ("DAB") in resolving construction disputes. It outlines the regulation of DAB along with its comparison, the intersection of provisions pertaining to it, and efforts to harmonize DAB with other dispute resolution forums in Indonesia. Finally, the benefits of DAB are that it is cost-effective and efficient which accommodates the complex nature of construction projects, thereby promoting uniformity, legal certainty, and the efficiency of Indonesia's construction dispute resolution mechanisms.