The COVID-19 Pandemic as a Force Majeure; Dual Perspective Between Islamic Development Bank's Guideline and Peraturan Presiden No. 16 Tahun 2018 (ID-150)

Abstract

The development of science and technology is in line with the development of the universities and all the stakeholders related to it. The University of Mulawarman, through Islamic Development Bank's financing, had implemented hard programs and soft Programs. The construction Project for its education buildings and infrastructures are part of the hard programs. During the implementation, the COVID-19 pandemic caused the project's delay for two months after the lockdown regulation was issued from the ministry level to The University, which demanded the university had to enforce a lockdown inside the campus. This policy raised a concern from the contractor to propose a force majeure situation as the loss occurs due to the lockdown policy to their risk. However, this situation had not been clearly stated both in the IsDB guideline for goods and works and Peraturan Presiden (Indonesian Procurement regulation) in terms of the Cause for Force Majeure. Therefore, this study compares how both regulations approach handling lockdown due to the COVID-19 pandemic as a cause of force majeure and how both regulations consider the additional cost and time extension raised after the enforcement of campus lockdown. This study used the qualitative method with The Development of Four Higher Education institutions 4in1 Project, Project Implementation Unit, The University of Mulawarman as a case study. The contractor's proposal for the force majeure situation was analysed from the IsDB's guideline as a primary and based rule of conduct. Not only IsDB guidelines but also this proposal observed from the Peraturan Presiden as well. The result of this study concluded that the lockdown due to COVID-19 was approved as a force majeure situation both from IsDB's guideline and Peraturan Presiden (Indonesian Government Procurement's regulation) perspectives. Furthermore, the additional cost and time extension affected by the lockdown were agreed upon as a lockdown consequence.