Characterisation of fictitious construction projects in Indonesia: governance lessons

Fictitious construction projects constitute a significant form of fraud and corruption in Indonesia’s construction sector, yet limited research has examined their legal characterisation and judicial treatment. This study analyses how Indonesian courts characterise and adjudicate fictitious construction project cases. A legal case profiling method was applied to Indonesian court decisions, identifying 151 relevant decisions, of which 27 reached the Supreme Court. Twelve construction-related cases were selected for detailed deductive profiling based on legal classification, defendant characteristics, project type, allegations, state financial losses, court rulings, and criminal liability. The findings indicate that disparities among cases arise mainly from judicial outcomes, evidentiary assessment, sentencing severity, and legal characterisation rather than contradictions in substantive law. These variations highlight the importance of strengthening project verification, integrated auditing, documentation, and accountability throughout the construction project life cycle. The findings should be interpreted cautiously because the detailed analysis is limited to 12 construction-related Supreme Court cases. This study contributes to legal and construction governance literature by providing a structured analysis of judicial reasoning, anti-corruption law enforcement, and sentencing disparities in fictitious construction project cases in Indonesia.