Today’s Legal Enlightenment (Thursday, 10 August 2023)

PAYMENT FOR A PROJECT BEFORE THE PROJECT IS COMPLETED IS NOT A STATE LOSS AND DOES NOT CONSTITUTE ANY ELEMENT OF UNLAWFUL OR ABUSE OF AUTHORITY

Regarding this issue, the Supreme Court has consistently held that full payment for work even though the work has not been completed 100% is not a loss to the state and does not meet the elements of unlawfulness or abuse of authority, with certain conditions, namely:

1. There are compelling circumstances so that the work cannot be completed by the contractor/goods/service provider on time;
2. An addendum to extend the time has been carried out;
3. There has been a determination of late fines;
4. The project implementer has paid the late fine;
5. Projects are completed on time based on time extensions; And
6. The project has been accepted by the project provider.

→ Supreme Court Decision No. 49 K/Pid.Sus/2016,

Source:

Book “Himpunan Yurisprudensi Mahkamah Agung Sampai Dengan Tahun 2018 Edisi Pertama,”

https://jdih.mahkamahagung.go.id/storage/uploads/produk_hukum/Yurisprudensi%20Tahun%202018/1652410687_Yurisprudensi_2018.pdf.

Regards,

Fredrik J. Pinakunary