Settlement Of Goods/Services Procurement Contract Disputes

This research aims to describe the dispute resolution process in public procurement contracts in Tangerang City. The research method is empirical juridical. The results show that there is a dispute in the implementation of the goods/services procurement contract in Tangerang City between the Tangerang City Public Works and Spatial Planning Agency and the goods/services provider during the 2021 fiscal year, namely in the form of a discrepancy between the remaining package capabilities submitted by the provider and the reality in the field. The settlement of the problem that occurred between the Tangerang City Public Works Office and the provider in dispute was through non-litigation channels by imposing a sanction of blacklisting the provider by the budget user of the Public Works and Spatial Planning Office in accordance with applicable regulations


INTRODUCTION
The global pandemic caused by the widespread transmission of the Covid-19 virus has significantly impacted various countries, including Indonesia.This crisis, which commenced in early 2020 and was officially recognized as a public health emergency through Presidential Decree Number 11 of 2020, has adversely affected not only the healthcare sector but also the economy of Indonesia.The circumstance above has led numerous prominent corporations and micro, small, and medium enterprises (MSMEs), formerly regarded as the foundational elements of the Indonesian economy, to undertake substantial efficiency measures.The fall in economic growth in Indonesia from 4.96% at the end of 2019 to -2.19% by the end of 2020 proves this assertion. 1is phenomenon is inherently linked to the repercussions of the Covid-19 pandemic on the micro, small, and medium enterprises (MSMEs) sector, which experienced a substantial decline in its GDP contribution.Specifically, the MSME sector's contribution diminished to a mere 37.3% in 2020, compared to its previous standing of 60% in 2019. 2 Significant divestment occurred within 1 "Badan Pusat Statistik," diakses 5 November 2023, https://www.bps.go.id/pressrelease/2022/02/07/1911/ ekonomi-indonesia-triwulan-iv-2021-tumbuh-5-02-persen--y-on-y-.html. 2 "Pertumbuhan Ekonomi Nasional Triwulan III-2022 Sebesar 5,72%, Menkeu : Cerminan Menguatnya Pemulihan Ekonomi Nasional di Tengah Ketidakpastian Ekonomi Global," Kementerian Keuangan Republik Indonesia, 9 November 2 022, https://www.kemenkeu.go.id/informasi-publik/publikasi/berita-utama/Per ekonomian-Indonesia-Triwulan-III-2022-5,7.The methodology employed in compiling this legal treatise is an sociological empirical approach.The empirical legal research approach is derived from field observations (from real actions that occur in the context of society).These actions are accepted and recognized by society because they do not contradict legal regulations, maintain public order, and adhere to prevailing social norms. 12The dataset utilized encompasses primary and secondary data,

RESULTS AND DISCUSSION
The term "dispute" refers to the translation of the word "sengketa" in English.
The Big Indonesian Dictionary (KBBI) defines "sengketa" with the following meanings: 1) a situation that creates differences in opinions, conflicts, or debates.
2) differences of opinion that lead to conflict or disagreement.3) issues brought before the realm of justice.Amriani describes a dispute as a clash between parties involved in an agreement due to the failure of one party to fulfill obligations within that agreement. 16hmadi states that a dispute is defined as a condition in which there is a dispute encompassing factual or perceptual aspects among individuals. 17Richard L. Abel uses the term "dispute" to depict a situation where there is a discrepancy or difference of opinion among involved parties regarding something of value."Something of value" is defined as something that holds worth or value. 18cording to Daen G. Pruitt and Jeffrey Z.
Rubin, the term "conflict" is used to describe differences in interests or the failure of involved parties to reach an agreement. 19fferences in interests are understood as variations in the needs or goals of each party.Abdulrasyid explains that in a dispute, one party may have a valid argument, but there is a possibility that each party has a valid legal basis in different aspects. 20

Procurement of Goods/Services
Dispute resolution is a process aimed at addressing differences or conflicts among the parties involved in a specific situation or transaction. 27There are two main approaches in dispute resolution: through litigation and non-litigation. 28These two approaches differ in the methods and approaches used to resolve disputes. 29Here is a detailed explanation of both: 1. Litigation Litigation refers to the dispute resolution process carried out through the court or judicial system.This approach is the most common and well-known.In litigation, parties involved in the conflict bring their case to court and request a judge or jury to make decisions regarding the dispute. 30Some key aspects of litigation

Non-Litigation
Non-litigation refers to dispute resolution methods outside the scope of the courtroom, using more flexible and less formal approaches than litigation. 32 services for government goods/services procurement contracts, has resulted in a notable enhancement in the efficiency of procurement dispute settlement. 42The term "Procurement dispute resolution services" mentioned in this regulation pertains to the services rendered by LKPP.
LKPP offers the acquisition dispute resolution service within its primary responsibility of formulating policies related to the government's acquisition of goods and services.The rule in question encompasses the areas of mediation, conciliation, and arbitration, which are the core components of procurement dispute resolution services.

Resolution Forum
Mediation is a form of dispute resolution outside the judicial system, commonly called an alternate approach. 43e regulations about mediation are often Furthermore, it is essential to note that the mediator assumes a neutral role and does not possess the authority to provide judgments or make binding determinations. 45e duration of mediation in the contract settlement service is set at 30

Resolution Forum
Conciliation is an additional approach to the resolution of conflicts.The 3 "Pertumbuhan Ekonomi Nasional Triwulan III-2022 Sebesar 5,72%, Menkeu."this region, resulting in a deceleration of economic activity.Furthermore, the advent of the pandemic led to a surge in unemployment, necessitating enterprises to enhance operational effectiveness.MSMEs are facing a growing impact due to a transition in consumer behavior, namely a shift from offline to online purchasing.Unfortunately, MSMEs are ill-prepared to adapt to this changing landscape.The Covid-19 pandemic has the potential to generate a comprehensive crisis impact across multiple domains, services to fulfill the government's requirements can be seen as an embodiment of the fifth principle of Pancasila.This principle emphasizes the pursuit of social justice through public welfare administration, which includes efforts towards growth.The subject under consideration might be construed as infrastructure development, a crucial factor in promoting development and expediting the process of national economic recovery.
which were acquired through collecting information via field studies and library research.13A comprehensive examination of many documents and literature sources was undertaken to compile the data to supplement the library research.Additionally, direct interviews were conducted with respondents as a field study component. 14The researcher's interest involves investigating the resolution process of goods and service contract disputes in Tangerang City.This interest stems from the observation that unexpected occurrences often arise while implementing or utilizing goods and services.For instance, in the context of construction work, various factors can impede the commencement of the construction process.Different external and internal circumstances may necessitate the provider to modify specifications or request additional time for project completion.In the realm of procurement, instances of undesirable occurrences are relatively uncommon.These may manifest in several forms, such as the receipt of goods that do not align with the specified requirements, the utilization of damaged items despite being within the maintenance period, or discrepancies observed in the quantity of goods received and the stipulated delivery schedule.Various factors can impact a procurement contract, potentially leading to modifications or even termination.In addition to the failure to address the neglect or delay of one of the parties, which can inadvertently lead to complications in the operational procedures and hinder the completion of tasks, it also fails to achieve the desired objectives. 15 It implies that one or more parties have engaged in default, as they have failed to execute fully or have surpassed the expected commitments, leading to losses for the other party involved.To ensure the effective resolution of disputes among several parties and uphold principles of justice and legal consistency, it is imperative to identify the optimal solution.In general, conflict resolution can be accomplished through two primary methodologies, specifically the litigation process or a non-litigation techniqueand services.An example of such a situation can be observed at the Department of Public Works and Spatial Planning of Tangerang City involving CV.Tunas Harapan Mandiri.During the procurement process for construction services at the department of public works and spatial planning of Tangerang City, the selection working group and procurement officers have identified several prerequisites that must be fulfilled by all bidders/non-tenders.These prerequisites are established by presidential regulations and regulations set forth by the government goods/services procurement agency.CV Tunas Harapan Mandiri emerged as the successful bidder in various construction work packages at the Department of Public Works and Spatial Planning of Tangerang City, employing both tender and non-tender approaches between 2018 and 2021.
and response: One party initiates the process by filing a lawsuit or legal claim against another party.The party being sued then responds to the lawsuit.b) Trial process: If there is no settlement outside of court, the trial process begins.The judge or jury listens to arguments from both sides, reviews available evidence, and makes decisions based on applicable law.c) Court decision: The judge or jury issues a final and binding decision.This decision determines the winning party and specifies the actions to be taken by the losing party.
dispute settlement mediation service is deemed closed unless the parties mutually consent to conduct the process openly.Tangerang City employs a neutral thirdparty mediator to facilitate resolving disputes that arise while procuring goods and services.Similarly, the mediation process necessitates the presence of conflicting parties.It may be reduced by a legal representative possessing a Special Power of Attorney, as outlined in Articles 25 and 26 of the institutional regulations.If a resolution is achieved via mediation, the involved parties must draft an agreement as an amicable document, which all parties and the mediator must sign.Subsequently, the mediator shall communicate the findings to the Service Secretary, as stipulated in Article 30 of the regulation above.If mediation proves unsuccessful, parties may proceed to the subsequent stage of dispute resolution, namely conciliation, as specified in article 3, paragraph (2) of the institutional regulations.
conciliation process aligns with the stipulations outlined in Law Number 30 of 1999.While the legal framework does not comprehensively describe conciliation, it is implicitly recognized as an alternative mechanism for resolving disputes, as evident in Article 1, paragraph (10) of the law.Conciliation, as a method of resolving disputes, typically involves a conciliator with the necessary power to intervene and actively engage in devising and implementing settlement solutions. 46If the parties involved in the argument fail to reach a consensus, the conciliator can propose potential courses of action to navigate a resolution to the impasse.In contract dispute resolution, conciliation is a subsequent course of action pursued when the disputing parties have not achieved a satisfactory solution through mediation. 47The notion of conciliation within Contractual Dispute Resolution Services is delineated in paragraph 5 of Article 1 of Institutional Regulation 18 of 18.
evidence, the last phase is referred to as the conclusion stage.According to Article 41 of Institutional Regulation Number 18 of 2018, the arbitrator grants the disputing parties a specific period to present their conclusions during the conclusion stage.This timeframe should not exceed 7 (seven) calendar days from when the arbitrator declares the conclusion of the review phase.Following the Conclusion stage, the subsequent phase is the refereeing stage, the ultimate step wherein the judge renders the final determination.The authority to provide decisions in procurement contract dispute resolution services lies with arbitrators, as outlined in Article 42 of Institution Regulation No. 18 of 2018.Once the arbitrator renders a decision will be promptly communicated to the disputed parties within seven days.The decision, duly signed by the arbitrator, will be transmitted to the involved parties.According to Article 42, paragraph (13), if one party exhibits a reluctance to comply with a decision voluntarily, the opposing party possesses the alternative of initiating a fresh legal action before the presiding authority of the district court within the relevant jurisdiction or consenting to the inclusion of the decision's contents within a peace agreement.Concerning the execution of this decision, the disputing parties can petition the court to enforce the judgment per the established procedures outlined by the court.to resolve conflicts.The current rule lacks clarity regarding the requirement of including an Arbitration clause in the contract for participation in a forum administered by LKPP.