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PADSK–SCLI encourages Understanding of Dispute Avoidance and the Use of FIDIC Contracts in Indonesia

PADSK focuses on strengthening the role of dispute board in accordance with Law No. 12 of 2017, as an alternative dispute resolution for construction outside the courts.

Konstruksi Media – The Chair of the FIDIC Membership Committee, Enni Moeliati Soetanto, emphasized the importance of broadening understanding of dispute avoidance and the application of FIDIC contracts in Indonesia. This was conveyed at the PADSK-SCLI International Conference 2025 at the Manhattan Hotel, Thursday-Friday (August 7-8, 2025).

Enni explained that the Institution of Dispute Board for Construction (PADSK) is focused on strengthening the role of dispute board, as specified in Law No. 12 of 2017, as an alternative dispute resolution for construction outside the courts. “Our Eastern culture prioritizes negotiations rather than going directly to court. The Ministerial Regulation has established a Dispute Council as one of the stages in dispute resolution, and this aligns with our values,” she said.

PADSK–SCLI International Conference 2025
Enni Moeliati Soetanto with Prof Sarwono Hardjomuljadi

The collaboration with SCLI, the Indonesian chapter of the Society for Construction Law International, began last year. The organization is placed at the University of Pekalongan, which has a Faculty of Law, to provide students with direct interaction with the international community. According to Enni, this activity is purely voluntary, with the goal of sharing knowledge with the next generation.

One of the main focuses is to encourage the use of FIDIC Conditions of Contract as a fair and balanced contract model between service users (employers) and service providers (contractors).

“Currently, many contracts still favor one party, usually the employer. With FIDIC, rights and obligations are balanced, allowing projects to be completed without legal action,” explained Enni, who is also Deputy Chair of the PADSK–SCLI International Conference 2025 Committee.

Furthermore, Prof. Sarwono, as chairman of PADSK and SCLI, initiated the establishment of the Master of Construction Law programme at the University of Pekalongan, with the first year of classes starting in September 2023. This will be the first master’s program in Indonesia specifically dedicated to construction law. The response has been very positive, with the number of students increasing from 36 in the first intake to 65 in the third year, drawn from state-owned enterprises (BUMN), regional-owned enterprises (BUMD), government agencies, and even the Supreme Audit Agency (BPK) and the Financial and Development Supervisory Agency (BPKP).

Enni emphasized the importance of the integrity of the dispute board, which must be impartial and trusted by both parties. “The dispute board is made up of individuals, not companies. The agreement is signed by three parties (tripartite agreement): the Dispute Board member, the employer, and the contractor. If one party doesn’t trust the other, any recommendations will be difficult to accept,” she said.

PADSK–SCLI International Conference 2025
Enni Moeliati Soetanto with foreign speaker

Regarding the FIDIC contract policy, Enni stated that almost all projects funded by international donor agencies such as the World Bank, ADB, or JICA use it. However, in regional projects, public awareness is still minimal and requires an active government role. She also highlighted the importance of minimum price regulations to maintain quality, emphasizing that “good goods cannot be cheaply paid.”

Prior to her involvement with PADSK and SCLI, Enni served as Managing Director of PT Mott MacDonald Indonesia (2007–2020), a British engineering consulting firm. She credits this experience with fostering a zero-tolerance approach to corruption and a belief that good faith bring good people together in the construction industry. (***)

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