Legal Liability in Government Procurement Contracts: Delineating the Boundaries between Civil, Administrative, and Criminal Law in Indonesia

Ahmad Feri Tanjung, Norhasliza binti Ghapa, Ronald Hasudungan Sianturi

Abstract

Government procurement in Indonesia involves contractual relationships between the government, represented by the Commitment Making Officer, and goods/services providers, while simultaneously operating within a public-law framework. This hybrid character complicates determining whether procurement irregularities give rise to civil, administrative, or criminal liability. This study aims to establish a differentiated framework for delineating the legal boundaries among these three forms of liability and to examine their application in judicial practice. This study employs legal research using statutory, conceptual, and case approaches. Primary legal materials consist of relevant legislation, regulations, and three judicial decisions representing civil, administrative, and criminal dimensions of government procurement disputes. The findings show that civil liability arises primarily from non-performance of contractual obligations and entails contractual remedies, including performance, compensation, or termination. Administrative liability concerns violations of public-law obligations or improper exercise of governmental authority, while criminal liability requires fulfillment of statutory elements of a specific offense and requisite fault. The study further reveals that the involvement of public funds or government officials does not automatically transform a contractual dispute into an administrative or criminal matter. A differentiated approach is therefore necessary to provide legal certainty, prevent the over-criminalization of ordinary contractual disputes, and strengthen accountability in government procurement.

Keywords

Breach of Contract; Civil Liability; Procurement Contract

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DOI: https://doi.org/10.20961/yustisia.v15i2.96100

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