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Indonesia: Statutory liabilities in the case of building failure

In construction projects, the nature and type of defects can vary dramatically, as can the point in time at which they become apparent, and the liabilities of the contractor with regard to the defects. As detailed below, Indonesian law imposes statutory liability both on employers and contractors regarding “building failure”, which cannot be avoided by the construction contract between the two parties. In order to manage the risk of the contractor related with its liabilities toward the defects, it is crucial to first distinguish between building defects and building failure, as the provisions and treatment for these matters differ significantly. In this article, we will focus on the regulation of contractor liabilities in the case of building failure. Indonesia’s current...To read the full article, please see the PDF file

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Authors

宇野 伸太郎

Shintaro is one of Japan’s leading experts on FIDIC and other construction-industry contracts. He specializes in international engineering and construction of infrastructure projects around the world, with a particular focus on Japan and Asia. He has extensive experience advising on a wide range of projects, including semiconductor plants, data centers, high-speed railways, highways, submarine cables, coal-mining process facilities, Mass Rapid Transit, high-rise buildings, lithium hydroxide plants, various types of power plants, tunnels, ports, dredging, offshore wind, and water treatment and supply facilities, with primary contracts based on the standard FIDIC contract forms (including Redbook, Yellowbook, Silverbook 1999 and 2017 version), Minkanrengo Building contract, Nikkenren Design Build and ENAA. On the contentious side, Shintaro has represented both employers and contractors in proceedings before Dispute Adjudication Boards, arbitral tribunals, and in the courts of various jurisdictions. .
Shintaro has been selected as a Leading Individual in the Construction: International category in Singapore for Chambers Asia-Pacific 2023 and 2024.
Regarding conflict and crisis management in Asia, he has handled numerous complex and difficult cases during his 13 years stationed in Southeast Asia, advising on risk analysis and response strategies based on the local situation. In particular, he has experience in handling over 60 litigation cases and criminal matters in Indonesia over the past 12 years, demonstrating his expertise in handling local disputes.

イカング・ダーヤント

Ikang DHARYANTO

  • Partner
  • Singapore

Ikang has advised a wide range of domestic and international clients across various industry sectors such construction, finance, IT, manufacturing, real estate, labor, dispute resolution, and criminal investigation. Ikang has assisted in various high-profile M&A transactions and has a good connection with Indonesian government authorities. He also advises on day-to-day corporate/commercial issues and licensing, including on investments at all stages, from inception to post-closing operations. As a partner of Indonesian practice in our Singapore Office and cross-border team, Ikang provides a tailored legal services in a timely and flexible manner.

マデ・グラジア・バリアナ・ウストリヤナ

Grazia is a member of Singapore Institute of Arbitrators (SIArb) and a certified Data Protection Officer (DPO) by Indonesian Association of Data Privacy Professionals (APPDI) . Aside from her active legal practice, Grazia is devoted to contribute back to her community in Bali, Indonesia, through a non-profit initiative which she co-founded to help more women gain access to higher education.

村田 智美

Tomomi MURATA

  • Partner
  • Singapore

Having been stationed at the Hanoi office from 2016 to 2017 and subsequently at the Singapore office since 2019, Tomomi brings a wealth of experience in international construction and infrastructure projects. Her portfolio spans a diverse range of cases, encompassing all areas from negotiation and drafting construction contracts to handling issues arising during project execution, addressing construction disputes, and conducting regulatory research related to construction in both domestic and international projects.

Leveraging her experience in Singapore and Vietnam, she collaborates with qualified lawyers in various jurisdictions, contributing to her extensive expertise in construction projects across the Southeast Asian region. In addition, she actively holds seminars and in-house training sessions on FIDIC, one of the leading standard forms of contract for international construction.
Beyond her focus on construction and infrastructure, she provides broad legal advice on issues related to new investments, joint ventures, and labor matters in Southeast Asian countries, with a particular emphasis on Singapore, Malaysia, Indonesia, and Vietnam.