https://proceeding.unikal.ac.id/index.php/ICFL en-US International Conference Faculty of Law 2985-5691 https://proceeding.unikal.ac.id/index.php/ICFL/article/view/3367 Infrastructure construction projects frequently experience disputes between various involved parties, including project owners, contractors, and third parties. The 500 kV Sumatra transmission construction project serves as a relevant example, where delays in completion, route changes, and contractual issues related to the return of equity funds and interest payments (Interest During Construction/IDC and Interest During Payment/IDP) sparked disputes between PT PLN (Persero) and the contractor. Mediation was chosen as an alternative dispute resolution (ADR) method to avoid lengthy and costly litigation processes. This article examines the effectiveness of the mediation facilitated by the State Attorney General's team, which resulted in significant agreements, including the return of 80% equity to the contractor before the issuance of the Taking Over Certificate (TOC) and the resolution of the remaining 20% afterward. The effectiveness of mediation was influenced by various factors such as voluntary participation of the parties, mediator competence, communication quality, and openness of information. However, several challenges were identified, including the imbalance of power between the parties and the risk of mediation being used as a delaying tactic. This research provides an in-depth understanding of the role of mediation in resolving construction disputes in Indonesia, particularly for large-scale projects. The findings show that mediation is an effective method for maintaining project continuity while preserving good business relationships between the parties involved. Adi Saputro Era Fransiska sami'an Sarwono Hardjomuljadi Copyright (c) 1 14 https://proceeding.unikal.ac.id/index.php/ICFL/article/view/3368 Alternative Dispute Resolution (ADR) is a legal mechanism that facilitates case resolution outside the courtroom, offering a more informal and efficient alternative to litigation. With its simplicity, affordability, and speed, ADR is often regarded as a superior method for resolving disputes. This paper explores the application of ADR in Indonesia and Vietnam, highlighting their respective legal frameworks. Indonesia has established ADR within its formal legal system earlier than Vietnam, providing a structured foundation for its use. Meanwhile, Vietnam is showing promising developments in ADR, with expectations of significant advancements, such as updates to its Law on Commercial Arbitration. These changes could position Vietnam as a key player in arbitration within the region. As Vietnam continues to refine its ADR practices, it is likely to become an increasingly attractive destination for businesses in need of reliable and globally recognized dispute resolution solutions. By comparing the progress of ADR in both countries, this study underscores Indonesia's established framework and Vietnam's potential as an emerging hub for arbitration. These findings contribute to understanding how ADR evolves in Southeast Asia, reflecting its importance in fostering effective and accessible dispute resolution Angga Dwian Prakoso Sarwono Hardjomuljadi Dwi Edi Wibowo Copyright (c) 15 24 https://proceeding.unikal.ac.id/index.php/ICFL/article/view/3369 Law No. 2 of 2017 on Construction Services, which is a revision of Law No. 18 of 1999, aims to improve regulations in the implementation of construction services to support national development. The implementation of construction services involves planning, execution, supervision, and maintenance of buildings, all of which must be carried out professionally and transparently. However, various legal issues may arise, such as work delays, contract violations, or building failures due to non-compliance with safety standards. Contractors are responsible for fulfilling performance according to the contract and applicable safety standards. The legal basis for construction contracts is governed by the Civil Code, which binds both parties as long as the contract is valid. This study examines the contractor's responsibility in performance failure, particularly related to building failures. Emphasizing standard compliance and strengthening regulations and human resources in the construction sector is expected to reduce risks and address global challenges. Construction service associations also play a crucial role in ensuring the implementation of SOPs and workplace safety, as well as improving the quality of construction projects in accordance with the applicable regulations Anrizal Copyright (c) 25 43 https://proceeding.unikal.ac.id/index.php/ICFL/article/view/3370 Construction projects essentially occur between the meeting of two interests, namely from the Service User and the Service Provider. In construction project activities, a contract agreement is usually made between both parties. In construction projects, there are multiple complex disciplines involved and many people with their own interests, which can lead to unavoidable disputes during contract execution. This research aims to find the ROLE of alternative dispute resolution (ADR) in construction services in Indonesia. ARIF ROHMAN Copyright (c) 44 50 https://proceeding.unikal.ac.id/index.php/ICFL/article/view/3371 Disputes are inevitable in any relationship, often resulting from conflicting interests between the parties involved. Employers aim to avoid budget deficits, while employees focus on maximizing profits. These conflicts necessitate effective mechanisms for resolution. Alternative Dispute Resolution (ADR) provides a cooperative, informal method to resolve conflicts outside of court, offering a mutually acceptable solution. Delays in resolving business disputes can lead to inefficient economic development, decreased productivity, and higher production costs, ultimately harming workers and consumers. To address this, parties are free to choose their preferred dispute resolution method. ADR offers a timely solution, preventing prolonged conflicts that may cause significant losses. This paper examines the application of ADR in business competition disputes, comparing the practices in Indonesia and the United States of America. Using a normative juridical approach, it analyzes the relevant laws and regulations governing ADR in both countries. The writer utilizes secondary data, including legal texts and publications from law enforcement institutions. The study highlights the potential for expanding ADR's role in resolving business disputes efficiently, providing valuable insights for improving dispute resolution practices in Indonesia and the USA Atik Amalia Khusnawati Copyright (c) 51 59 https://proceeding.unikal.ac.id/index.php/ICFL/article/view/3372 The construction industry has used private dispute resolution techniques longer than most industries. Formal legal remedies are much slower and inflexible in the context of a fast-moving activity such as construction project. The methods of dispute resolution in Indonesia can be divided into two categories based on the method carried out within the court or litigation and carried out outside of the court which can divided into two subcategories, namely arbitration and alternative dispute resolutions (ADR). This research is a normative juridical study through a statute approach. The statutory approach is carried out by reviewing and analysing laws and regulations related to alternative dispute resolution. The aims of this research are to review the legal framework of ADR in Indonesia and to identify challenges and suggest areas for improvement. The result is ADR methods such as mediation, negotiation, and conciliation remain underutilized in Indonesia. Several factors contribute to this, including limited public awareness and insufficient socialization of these methods, as well as a deeply ingrained culture of litigation. Ayuningtyas Pratita Sarwono Hannafied Tedjo Copyright (c) 61 67 https://proceeding.unikal.ac.id/index.php/ICFL/article/view/3374 Infrastructure construction projects frequently experience disputes between various involved parties, including project owners, contractors, and third parties. An example like Hydropower construction projects often encounter disputes due to their technical complexity and involvement of multiple stakeholders. Asahan No. 3 HEPP (2 x 87 MW), a national priority project in Indonesia, The construction of the Asahan 3 Hydropower Plant (2x87 MW) is intended to meet the electricity demand in Sumatra, supplying 1,477 GWh/year. The project comprises several lots, including: Lot I – Civil Works, Lot II – Mechanical Works, Lot III – Electromechanical Works, Lot IV – Transmission Works. The contract for Lot I - Civil Works was signed on January 15, 2019, under an FIDIC-based agreement, with a project duration of 48 months starting from the commencement date of March 3, 2019, and concluding on March 3, 2023. The execution of Lot I - Civil Works is managed by the Shimizu – Adhi Karya Joint Operation. During its implementation, it was noted that the Dispute Board adopted for the Lot I: Civil Works contract is an Ad-hoc Dispute Board. However, the contract for Lot I: Civil Works of the Asahan 3 Hydropower Plant follows the FIDIC Multilateral Development Bank (MDB) 2010 edition, which prescribes the use of a Standing Dispute Board for dispute resolution. Additionally, in accordance with the JICA Dispute Board Manual 2012, JICA strongly discourages the use of an Ad-hoc Dispute Board and recommends implementing a Standing Dispute Board. Data from the Dispute Resolution Board Foundation (2018) highlights that adopting a Standing Dispute Board significantly reduces the likelihood of disputes escalating to arbitration, with only 0.53% of disputes ending in arbitration compared to 14.05% for Ad-hoc Dispute Boards. Furthermore, the high frequency of contractor claims also supports the consideration of a Standing Dispute Board for Lot I: Civil Works of the Asahan 3 Hydropower Plant project. Bayu Wisatrioda Copyright (c) 68 85 https://proceeding.unikal.ac.id/index.php/ICFL/article/view/3375 The Makassar–Parepare railway line is the first National Strategic Project (PSN) for the Trans Sulawesi National Railway network on Sulawesi Island, which started in South Sulawesi Province. The construction of the Sapanang Overpass, which is located in Sapanang Village, Bungoro District, Pangkep Regency, is an implementation of the mandate of Law Number 23 of 2007 concerning Railways to ensure the safety of train travel where the intersection of railway lines and roads is not at a level. Simultaneously, the construction of the Sapanang Overpass necessitates a sizable land area for detour work. The Acting Governor of South Sulawesi unilaterally revoked the Decree on Determining Development Locations, which served as the basis for land acquisition, citing the unfulfilled permit to transfer the use/disposal status of BUMN assets. This revocation causes legal uncertainty in land acquisition, which cannot be implemented, and the construction of the overpass cannot be completed according to the targets that have been set. The problem has been examined from multiple perspectives, including technical, legal, construction management, and public policy aspects. In the end, recommendations that can be implemented to follow up on this problem include utilizing policy instruments based on PSN regulations to get special attention from the central and regional governments, and orderly administration is the key to implementing good governance. Deby Hospital Copyright (c) 86 96 https://proceeding.unikal.ac.id/index.php/ICFL/article/view/3376 Alternative Dispute Resolution (ADR) such as arbitration, mediation and reconciliation is gaining more attention for dispute resolution in Indonesia, as it is a more efficient ADR than litigation. Indonesia adheres to the Civil Law legal system, which prioritizes legislation and the written law system, but the influence of the Common Law system with a more flexible approach to dispute resolution has also had a significant impact on the formation and application of dispute resolution mechanisms in Indonesia. The purpose of this study is to analyze the impact of Common Law and Civil Law on the development of ADR in Indonesia, using an analytical descriptive approach, identifying how the influence of Common Law and Civil Law plays a role in influencing the regulation and practice of ADR in Indonesia, as well as the challenges faced in its implementation. The results show that although Indonesia adheres to Civil Law, Common Law elements such as party autonomy in arbitration and flexibility in mediation, are beginning to be accepted and adapted. However, it has major challenges in terms of education, access, and standardization of ADR procedures in Indonesia. Dinda Putri Santoso Copyright (c) 97 101 https://proceeding.unikal.ac.id/index.php/ICFL/article/view/3377 The Construction Dispute Council Experts Association (PADSK) offers such an alternative solution to resolving construction disputes outside the courts. As an alternative dispute resolution institution PADSK offers to facilitate mediation, conciliation, and arbitration processes, PADSK seeks to overcome the challenges often faced in conventional legal processes, such as high costs, lengthy processes, and the need for technical experts. This paper explores the advantages and disadvantages of the PADSK dispute resolution method, as well as its impact on the efficiency of time, costs, and relationships between parties in the construction industry Elfriandi Copyright (c) 102 112 https://proceeding.unikal.ac.id/index.php/ICFL/article/view/3378 Electricity is very important in the era of modernization, as it not only serves as an energy source that meets the needs of many people but also supports economic growth in a region. Therefore, its management is regulated based on Article 33 of the Indonesian Constitution and applicable regulations. As technology advances, the demand for electricity supply is also increasing rapidly. To support this, PLN (Persero) as a state-owned electricity company in Indonesia opens up collaboration opportunities with private enterprises as electricity producers commonly referred to as Independent Power Producers. (IPP). The role of the IPP here is as a seller of electricity to PT. PLN Persero through the Power Purchase Agreement (PJBTL). The collaboration between PLN and the Private Business Entity is aimed at developing small-scale Renewable Energy Power Plant (EBT) projects under 10 MW, particularly Mini-Hydro Power Plants. (PLTM). In conducting the electricity sale and purchase process between both parties through the Power Purchase Agreement (PPA), several disputes were found. This research aims to identify the disputes occurring in the PJBTL PLTM Paraeng in West Java and to understand the efforts made to resolve these disputes based on the applicable rules/regulations Eric Baroroh Sami’an Sarwomo Hardjomuljadi As’ari TR Copyright (c) 113 124 https://proceeding.unikal.ac.id/index.php/ICFL/article/view/3380 Within the context of Indonesia's civil law system, this article examines dispute resolution in green building projects. The goal of the study is to address the growing legal complexity brought on by sustainability criteria, such as certification standards, appropriate site development, energy efficiency, water eficiency, material resource and cycle, indoor health and comfort, building environment management. The research methodology employed in this study is a Mixed Method, which includes expert judgment and a literature review on construction law and green building regulations in Indonesia. The lack of precise rules for resolving conflicts in green building projects and the limited incorporation of sustainability principles into Indonesia's legal system are two of the main problems. The paper assesses current conflict resolution procedures, highlighting the function of substitute strategies like adjudication and mediation. Yuwono Imanto Copyright (c) 125 132 https://proceeding.unikal.ac.id/index.php/ICFL/article/view/3381 Makalah ini menganalisis kasus kegagalan konstruksi terkait robohnya tower transmisi saat erection tower akibat tanah longsor dan menyoroti potensi sengketa antara pihak-pihak terkait. Studi ini menggunakan metode analisis hukum komparatif antara Civil Law dan Common Law. Hasil dan Pembahasan menunjukkan bahwa dalam Civil Law, force majeure diinterpretasikan secara ketat, sementara Common Law lebih fleksibel dengan mempertimbangkan faktor mitigasi. Mediasi efektif untuk mengurangi konflik dan menjaga hubungan kerja sama, sementara arbitrase menawarkan penyelesaian yang cepat dan mengikat dibandingkan litigasi. ADR lebih unggul dari litigasi dalam efisiensi waktu dan biaya, menjadikannya pilihan utama dalam sengketa konstruksi. Hasil penelitian ini menekankan pentingnya penyusunan klausul kontrak yang spesifik, dan pemilihan mekanisme ADR yang sesuai. Penelitian lanjutan disarankan untuk mengevaluasi durasi dan biaya ADR di berbagai jenis proyek infrastruktur Ifdal Baharuddin Copyright (c) 133 142 https://proceeding.unikal.ac.id/index.php/ICFL/article/view/3382 Indonesia experienced significant growth in the construction service industry, with market projections reaching Rp349,16 trillion in 2024, growing 4.68% from 2023. Construction projects involve resources and often have the potential to cause disputes. From 2017 to 2021, construction disputes increased from 2,153 to 3,880 cases, highlighting the need for non-litigation settlement alternatives. The research explores the role of the construction dispute board in providing solutions and perspectives of construction service providers towards dispute prevention. The Construction Dispute Council in Indonesia acts as an alternative to resolving construction disputes, according to the Ministerial Regulation of PUPR Number 11 of 2021. Consisting of a minimum of 3 members, this council is formed through an employment agreement. His duties include preparing schedules, studying contracts, field visits, and making reports and recommendations to prevent disputes. In addition to deliberation, the law also regulates settlement through mediation, arbitration, or court channels. Several related institutions include BANI, DSI, and PADSK. Construction service actors try to avoid disputes and disputes through the Dispute Board to obtain legal certainty. According to Permen PUPR No. 11 Year 2021, a dispute is a conflict between Service Users and Service Providers that can cause legal consequences. Although Law No. 2 of 2017 provides alternative solutions, | Dispute Councils are often considered to have no legal certainty due to reluctance to negotiations, distrust, and arguments that persist. Awareness of the needs of the mediator is needed to minimize disputes in construction contracts. Keywords: Indonesia, Construction Dispute, Dispute Board, Legal Certainty, Construction Contract Wida Pramudya Bayu Adhi Copyright (c) 143 152 https://proceeding.unikal.ac.id/index.php/ICFL/article/view/3384 This paper explores the settlement of construction disputes through arbitration, focusing on a claim regarding the Java Submarine Cables 150 kV Circuit 3 & 4 (Replacement & Reinforcement) project. The arbitration process, selected as an alternative dispute resolution mechanism, was initiated due to delays and complications arising from regulatory changes, specifically the 2011 Maritime Navigation Regulations, which impacted the project's timeline and execution. The contractor, PT Boskalis International Indonesia, filed claims related to project suspensions and cost overruns caused by delays in obtaining essential permits. Through the Badan Arbitrase Nasional Indonesia (BANI) arbitration, a resolution was reached, dividing the responsibility for costs between PT PLN (the client) and the contractor. The paper emphasizes the advantages of arbitration in resolving construction disputes, including its confidentiality, speed, and the ability to appoint experts as arbiters. The final ruling, which was binding, provided a fair and efficient resolution to the complex issues involved. Iwan Arif Setiyawan Copyright (c) 153 170 https://proceeding.unikal.ac.id/index.php/ICFL/article/view/3386 Construction work is now carried out on an international scale, and involves many parties from various countries. Dispute resolution in construction contracts is often a challenge because it involves various parties with different interests. Disputes that arise can be caused by differences in contract interpretation, changes in working conditions, or non-conformity of work results with agreed specifications. Dispute resolution methods through Litigation and Non-Litigation are alternative solutions, especially for disputes in the construction sector that require fast and professional resolution. This paper discusses alternative mechanisms for resolving construction disputes through non-litigation as an option for resolving construction work contract disputes in Indonesia (Civil Law) and in America (Common Law), including its advantages and challenges. The approach used is the method of analyzing relevant laws and regulations. The results show that alternative construction contract dispute resolution through non-litigation offers various advantage. Different Arbitrase procedure in Common Law and Civil Law Countries, but the same procedure for Dispute Board. Putut Marhayudi niniek lanyati Copyright (c) 2026 International Conference Faculty of Law 2026-04-14 2026-04-14 178 186 https://proceeding.unikal.ac.id/index.php/ICFL/article/view/3385 As a developing country, Indonesia has actively pursued various development activities. Infrastructure development has continued to grow since the 1998 economic crisis, particularly in the past 20 years. One of the major challenges in construction projects in Indonesia is the occurrence of construction contract disputes between clients and contractors. Disagreements, conflicting interests, and concerns over potential losses often lead to such problems or disputes. As construction activities increase, so too do construction contract disputes. This research employed a literature review method by examining existing literature to understand the concepts, theories, and previous findings related to the research problem. Following Articles 52 and 53 of Law No. 30 of 1999 concerning Arbitration and Alternative Dispute Resolution, arbitration institutions can issue binding opinions on matters related to construction contracts. The binding opinion issued by the Indonesian National Arbitration Board (BANI) can resolve disputes and prevent construction contract disputes. Prasetyo Efendy Copyright (c) 171 177 https://proceeding.unikal.ac.id/index.php/ICFL/article/view/3387 Construction disputes often present significant challenges in large-scale infrastructure projects, including the Riau Peaker 200 MW Gas Engine Power Plant project. This study aims to analyze the implementation of the Dispute Board as an alternative dispute resolution mechanism in this project. Using a qualitative-descriptive approach, data were collected through contract document analysis, amendments, meeting outcomes, and semi-structured interviews with stakeholders, including PT PLN (Persero) and the contractor. The findings reveal that disputes were triggered by delays in Down Payment (DP), differing interpretations of contract clauses, and a proposed 63% price escalation by the contractor. The application of the Dispute Board proved effective in fostering win-win solutions that prevented conflict escalation. Agreements reached included revisions to the work schedule and DP payments, supporting the project's continuity toward achieving the targeted Commercial Operation Date (COD) in 2025. Despite its effectiveness, the implementation of the Dispute Board faced challenges such as differing commercial interests and the absence of detailed internal guidelines from PLN. This study recommends enhancing mediator capacity, developing comprehensive internal guidelines, adopting early-stage mediation, and improving communication transparency among parties to increase the efficiency of future dispute resolutions. qadri Copyright (c) 187 201 https://proceeding.unikal.ac.id/index.php/ICFL/article/view/3388 The growth of the construction industry has led to increased complexity in construction projects, presenting new challenges in efficiency for resolving construction disputes. One of the infrastructure construction projects in the electricity sector (Project X) in Indonesia faces complex issues ranging from contractors' loss of financial capability to complete the work to contract termination, which results in project completion delays. Utilizing an Alternative Dispute Resolution (ADR) approach, specifically through negotiation methods, offers a faster and more efficient solution compared to arbitration and litigation. Through the negotiation process, the parties involved in construction disputes can communicate, understand each other's arguments, and ultimately seek a way out (win-win solution). Environmental Impact Assessment one of the essential components in disputes related to electricity infrastructure construction, often becoming a source of conflict among the parties involved Reza Rafly Sebastian Copyright (c) 202 212 https://proceeding.unikal.ac.id/index.php/ICFL/article/view/3389 Alternative Dispute Resolution (ADR) is critical in addressing construction disputes, especially given the inherent complexity of such projects and the likelihood of conflicts. This paper explores the application of ADR techniques, including arbitration, mediation, and conciliation, within both Common Law and Civil Law systems. The key issue lies in the variations between these legal frameworks, which challenge the consistent implementation of ADR in international construction disputes. The research aims to evaluate how ADR mechanisms function across these two legal traditions and measure their effectiveness in resolving construction-related conflicts. Using a comparative analysis of prominent ADR practices in Common Law and Civil Law jurisdictions, the study focuses on their practical impacts on construction dispute resolution. The findings reveal marked differences, with Common Law systems preferring arbitration, while Civil Law systems emphasize mediation and conciliation. The conclusion underscores the need for greater alignment of ADR practices to streamline the resolution of cross-border construction disputes, suggesting that hybrid approaches could offer more adaptable and effective solutions sutikno Copyright (c) 213 223