Towards Resilient Construction Contracts: Defining Adaptive Clause Characteristics for Disaster Risk in Indonesia

Abstract

Indonesia is one of the most disaster-prone countries in the world, facing frequent earthquakes, floods, volcanic eruptions, and other natural hazards that significantly disrupt infrastructure development. However, most construction contracts used in Indonesia remain rigid and ill-equipped to accommodate such risks. This study aims to identify the key characteristics required for disaster-responsive contract clauses that are contextually grounded, legally sound, and operationally feasible. Using a qualitative desktop study approach, this research analyzes standard contract models commonly used in Indonesia, namely based on Presidential Regulation No. 16/2018, MPWH templates, and FIDIC, and compares them against the country’s disaster risk landscape. The findings reveal gaps in disaster-specific risk allocation, post-disaster recovery procedures, and integration of local hazard data. To address these challenges, the paper proposes a set of adaptive contract characteristics, including context-based risk mapping, actionable emergency protocols, legally grounded thresholds for clause activation, and flexible mechanisms for suspension, renegotiation, and compensation. These characteristics can serve as a foundation for revising standard contract documents and improving legal resilience in infrastructure contracting, which would ultimately enhance project continuity and reduce disputes.