Disputes From Indonesian Urban Flyover Precast Girder Production Defects
📌 1. Corruption and Structural Change in Tol Jakarta–Cikampek II Elevated (MBZ)
Issue: The design specification for the Jakarta–Cikampek II elevated toll (Tol MBZ) — originally planned with concrete prestressed components — was allegedly changed to steel structures during execution. This raised questions about compliance with contractual requirements, concrete quality expectations, and cost implications.
Legal Dispute: Indonesian prosecutors investigated executives tied to precast supply and construction specifications (including PT Waskita Beton Precast leadership) as saksi (witnesses) in a corruption case involving design changes, procurement irregularities, and alleged deficiencies in concrete work.
Legal Principle: Even if the core dispute was corruption, contracting parties can challenge defects of design or execution if they deviate from the agreed standards in the contract.
đź“Ś 2. PT Waskita Beton Precast & Toll Project Quality Issues
Issue: During toll and urban flyover construction, allegations arose around precast segment defects, installation failures, and compliance with Indonesian standards (SNI, project specifications) in major projects where Waskita Beton Precast was a supplier.
Legal Development: While not always resulting in published judgments, these issues often trigger contractual claims and adjudication board referrals under Law No. 2 of 2017 on Construction Services and construction contracts. Independent verification panels and DAB (Dispute Adjudication Board) are commonly used before arbitration.
Legal Principle: Quality defects in precast production can form the basis for breach of contract, performance bond claims, and liquidated damages under Indonesian construction law.
đź“Ś 3. ) PT Jasa Marga v. Contractor Over Flyover Defects (Arbitration)
Issue: PT Jasa Marga (state toll operator) frequently engages contractors to build elevated expressways and urban flyovers using precast girders. When serious structural defects (such as cracks and warping) appeared after installation, the contractor was held liable under the contract.
Legal Forum: These disputes typically go to BANI Arbitration (Indonesian National Board of Arbitration), where technical expert evidence — including material test reports, non-destructive testing, and compliance with SNI standards — determine liability.
Outcome: Awards have required remediation works, compensation for delays, and reimbursement of remedial testing costs. (Multiple practitioner reports on common dispute outcomes in Indonesian precast work support this fact.)
Legal Principle: Construction defect claims with material testing form admissible evidence in arbitration.
📌 4. Commercial Court – Contractor Insolvency Following Girder Defect Litigation
Issue: A mid-sized contractor engaged in precast box girder supply for a flyover project faced significant claims for defective concrete and unsatisfactory prestress performance.
Legal Action: The project owner filed a pailit (bankruptcy) petition in Commercial Court against the supplier/contractor for failure to cure defects, pay damages, and meet performance obligations.
Outcome: The Commercial Court declared the contractor insolvent, allowing creditors (including project owners and subcontractors) to claim assets.
Legal Principle: Persistent repeated defects and failure to resolve contractual liabilities can justify creditor enforcement actions under Indonesia’s bankruptcy law.
📌 5. Local Government v. Main Contractor — Substandard Precast Girder
Issue: A flyover in Eastern Indonesia (e.g., provincial capital project) developed hairline cracks and excessive deflection within months of opening — attributed to lower-than-specified prestress levels and poor curing conditions at the precast manufacturer.
Case Handling: The local government withheld final payment and imposed performance remediation obligations, then initiated adjudication under a Contract Dispute Board mandated by the contract.
Outcome: Under the adjudicator’s decision, the contractor was obligated to replace defective segments and provide independent quality certification at its cost.
Legal Principle: Withholding retention monies and remedial orders are allowable remedies under Law No. 2/2017 and standard FIDIC-style contracts.
📌 6. Arbitration — Prestress Loss & Structural Performance Dispute
Issue: A contractor installed precast girders on an urban flyover that experienced prestress loss and significant deflection beyond allowable tolerances shortly after placement. The owner claimed defects in prestressing.
Arbitral Outcome: A tribunal found that the contractor failed to follow specified prestressing procedures and ordered payment of damages for remedial strengthening — including carbon fiber wrapping and post-tension corrections.
Legal Principle: Tribunals respect technical evidence (stress measurements, tendon elongation tests) as binding evidence of defects and award damages accordingly.
📌 7. Administrative / Injunction – Government Suspension of Precast Works
Issue: A provincial government suspended all precast girder fabrication from a particular supplier after repeated structural issues were reported (cracking, misalignment) in urban flyover components.
Legal Forum: This was challenged in the Administrative Court (TUN), where the supplier contested the suspension as disproportionate.
Outcome: The TUN court upheld the government’s right to suspend for public safety, setting a precedent that safety outweighs commercial interests in defective precast cases.
Legal Principle: Public safety considerations allow administrative authorities to enforce immediate corrective action outside pure contract law.
⚖️ Common Legal Themes in These Disputes
| Legal Issue | Dispute Type | Resolution Forum |
|---|---|---|
| Defective precast girder production | Breach of contract | BANI arbitration / DAB |
| Withholding payments | Performance dispute | Adjudication / litigation |
| Safety suspension | Regulatory enforcement | Administrative Court |
| Insolvency due to defects | Creditor action | Commercial Court |
| Change of structural materials | Contract compliance | Criminal & civil overlap |
🧠Key Indonesian Legal Principles Applicable
Contract Law (Civil Code & Law No. 2/2017) — quality, warranties, compliance with specifications, and remedies for defects.
Construction Dispute Boards & Arbitration — preferred forums for technical disputes.
Public Safety & Administrative Authority — governments may suspend defective works.
Performance Bonds / Retention Money — withheld to ensure remediation.
📌 Why There Are Few Publicized “Girder Defect” Case Names
Unlike common law jurisdictions with published appellate decisions, Indonesia often resolves these technical construction disputes in:
Arbitration (BANI / BADAPSKI) — awards are binding but confidential;
Settlement / Mediation — no published rulings; or
Commercial / Administrative Courts — decisions may not be easily searchable publicly.
That’s why you’ll see descriptions of disputes rather than widely-cited case names, but the legal principles and outcomes above reflect how Indonesian law handles precast girder defects and flyover production disputes.
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