THE USE OF A DISPUTE BOARD FOR RESOLVING DISPUTES IN THE RIAU GAS ENGINE POWER PLANT (PEAKER) 200 MW PROJECT

Abstract

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.