Review of Financial Penalties Implementation on Non-Compliance With Road Performance Indicators

Indonesia's national road preservation system, mainly routine road maintenance, was initially carried out independently by the project manager as a road section manager. This maintenance has been transformed into a "long segment" scheme since 2016. The contractor is subject to financi...

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Main Authors: Sita, Tisara, Mulyono, Agus Taufik, Tri Utomo, Suryo Hapsoro
Format: Article
Language:English
Published: Penerbit UTM Press 2023
Subjects:
Online Access:https://repository.ugm.ac.id/285871/1/REVIEW%20OF%20FINANCIAL%20PENALTIES%20IMPLEMENTATION%20ON%20NON.pdf
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author Sita, Tisara
Mulyono, Agus Taufik
Tri Utomo, Suryo Hapsoro
author_facet Sita, Tisara
Mulyono, Agus Taufik
Tri Utomo, Suryo Hapsoro
author_sort Sita, Tisara
collection UGM
description Indonesia's national road preservation system, mainly routine road maintenance, was initially carried out independently by the project manager as a road section manager. This maintenance has been transformed into a "long segment" scheme since 2016. The contractor is subject to financial penalties in the form of withholding payments for each failure to meet the road performance indicators within the specified repair response times. The government, specifically the project manager, has not adequately applied the current financial penalties for late fulfillment of road performance indicators in Indonesia. The implementation of financial penalties that is not adequate is inversely proportional to the number of public complaints related to road performance, which represents the impact of road performance that does not meet the criteria. This study recommends developing a comprehensive policy for penalties related to the late fulfillment of road performance indicators. The policy should consider multiple indicators and components and adjust the coefficient of each component based on the severity of the condition. In addition, this study advises revising the formulation of financial penalties using relevant data, such as average daily traffic volume or public complaints.
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spelling oai:generic.eprints.org:2858712024-03-04T08:16:29Z https://repository.ugm.ac.id/285871/ Review of Financial Penalties Implementation on Non-Compliance With Road Performance Indicators Sita, Tisara Mulyono, Agus Taufik Tri Utomo, Suryo Hapsoro Civil Engineering not elsewhere classified Civil Engineering Indonesia's national road preservation system, mainly routine road maintenance, was initially carried out independently by the project manager as a road section manager. This maintenance has been transformed into a "long segment" scheme since 2016. The contractor is subject to financial penalties in the form of withholding payments for each failure to meet the road performance indicators within the specified repair response times. The government, specifically the project manager, has not adequately applied the current financial penalties for late fulfillment of road performance indicators in Indonesia. The implementation of financial penalties that is not adequate is inversely proportional to the number of public complaints related to road performance, which represents the impact of road performance that does not meet the criteria. This study recommends developing a comprehensive policy for penalties related to the late fulfillment of road performance indicators. The policy should consider multiple indicators and components and adjust the coefficient of each component based on the severity of the condition. In addition, this study advises revising the formulation of financial penalties using relevant data, such as average daily traffic volume or public complaints. Penerbit UTM Press 2023 Article PeerReviewed application/pdf en https://repository.ugm.ac.id/285871/1/REVIEW%20OF%20FINANCIAL%20PENALTIES%20IMPLEMENTATION%20ON%20NON.pdf Sita, Tisara and Mulyono, Agus Taufik and Tri Utomo, Suryo Hapsoro (2023) Review of Financial Penalties Implementation on Non-Compliance With Road Performance Indicators. ASEAN Engineering Journal, 13 (3). pp. 55-63. ISSN 25869159 https://journals.utm.my/aej/article/view/19000 10.11113/aej.v13.19000
spellingShingle Civil Engineering not elsewhere classified
Civil Engineering
Sita, Tisara
Mulyono, Agus Taufik
Tri Utomo, Suryo Hapsoro
Review of Financial Penalties Implementation on Non-Compliance With Road Performance Indicators
title Review of Financial Penalties Implementation on Non-Compliance With Road Performance Indicators
title_full Review of Financial Penalties Implementation on Non-Compliance With Road Performance Indicators
title_fullStr Review of Financial Penalties Implementation on Non-Compliance With Road Performance Indicators
title_full_unstemmed Review of Financial Penalties Implementation on Non-Compliance With Road Performance Indicators
title_short Review of Financial Penalties Implementation on Non-Compliance With Road Performance Indicators
title_sort review of financial penalties implementation on non compliance with road performance indicators
topic Civil Engineering not elsewhere classified
Civil Engineering
url https://repository.ugm.ac.id/285871/1/REVIEW%20OF%20FINANCIAL%20PENALTIES%20IMPLEMENTATION%20ON%20NON.pdf
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