Comparative Study of Construction Contract Dispute Resolution Mechanisms between Indonesia and Singapore

Natasya Yunita Sugiastuti, Ani Purwati, Wardatul Fitri, Salwa Faeha Hanim, Selamat Lumban Gaol

Abstract


This study explores and contrasts the legal foundations and practical application of mechanisms used to resolve construction contract disputes in Indonesia and Singapore. The primary objective is to analyze similarities and differences in legal principles, institutional arrangements, and procedural effectiveness in resolving disputes arising from construction contracts. Using a normative juridical method with a comparative approach, this study collects data from statutory regulations, case law, and doctrinal literature in both jurisdictions. The analysis focuses on key aspects such as contractual dispute clauses, the role of arbitration institutions, mediation processes, and enforcement of arbitral awards. In Indonesia, the resolution of construction disputes is governed by Law No. 2 of 2017 on Construction Services, supplemented by the Civil Code and arbitration rules under BANI (Badan Arbitrase Nasional Indonesia). Conversely, Singapore applies a more streamlined dispute resolution system through the Building and Construction Industry Security of Payment Act (SOPA) and the Singapore International Arbitration Centre (SIAC), which emphasizes procedural efficiency and enforceability. Findings indicate that Singapore’s framework offers faster resolution timelines and higher predictability of outcomes due to specialized tribunals and statutory adjudication, while Indonesia’s system is often hampered by procedural delays and limited enforcement efficiency. The novelty of this research lies in providing a structured comparative insight into how statutory adjudication in Singapore could serve as a model for reforming Indonesia’s construction dispute resolution regime, thereby enhancing legal certainty, efficiency, and investor confidence in the construction sector.

Keywords


Adjudication; Arbitration; Construction Contract

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DOI: http://dx.doi.org/10.30659/akta.v13i2.49657

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