Indonesia's small-claims rules, Perma 2/2015 as amended by Perma 4/2019, contain one condition that can decide what happens to your renovation deposit: a small claim (gugatan sederhana) cannot be filed against a defendant whose residence is unknown. The route handles disputes up to Rp500 million, and the hearing stage is capped at 25 days from the first session. It closes if all you have from the contractor is a WhatsApp number.
The pattern repeats. A new homeowner in Bekasi transfers a deposit for a carport, a kitchen or an extra room. Workers turn up for a few days, some materials arrive, then the job stops and the number goes dead. Start with the step that costs least and is hardest to repeat later: evidence.
Collect the Evidence Today
- The contract, quotation, or chats that state the scope, price and completion date.
- Transfer receipts, including the recipient's name and account number.
- Photos and video of the site as it stands, plus a list of the materials that actually arrived.
- A copy of the contractor's ID card, office address, or the address of another project.
- Witnesses: the guard who logged the workers in, neighbours, or the estate office that issued the work permit.
The guard post logbook and the renovation permit file at the estate office often hold names and numbers you forgot to keep. Ask for copies this week, while they are easy to find.
Hold off on posting the contractor's name and photo in the residents' group or on Facebook. An accusatory post can turn into your own legal problem, as we covered in our piece on Article 27A of the ITE Law. A full chronology does more good in the hands of a lawyer or the police.
Send a Demand Letter With a Clear Deadline
Article 1243 of the Civil Code ties the duty to pay damages to a debtor who has been declared in default and remains so. Article 1238 says that declaration can come through a written order or similar deed, or through the agreement itself, where it provides that the debtor is in default once a set time has passed. Most renovation contracts have no such clause, so a demand letter (somasi) is still needed even when the person is hard to reach.
Keep it short: the basis of the agreement, the dates and amounts paid, the work left undone, and a clear demand, such as resuming work or refunding the money within seven days. Send it by registered post to whatever address you have, then send a photo of it by WhatsApp and email. Keep the receipt and screenshots.
Breach or Fraud: It Turns on Intent at the Start
Older articles still cite Article 378. Since the new Criminal Code took effect on 2 January 2026, fraud sits in Article 492 of Law 1/2023, carrying up to 4 years in prison or a category V fine, which is up to Rp500 million.
The line with civil cases comes from Supreme Court jurisprudence 4/Yur/Pid/2018: a party who fails to perform a valid agreement commits breach of contract rather than fraud, unless the agreement was founded on bad faith. Police will ask what the contractor did before and after receiving the money.
| What gets examined | Leans toward breach | Leans toward fraud |
|---|---|---|
| Identity | Real name, ID card and address | False name, company or address |
| Work | Started, materials bought, then stopped | Almost no work after the money landed |
| Communication | Still replies and asks for time | Blocks you or changes number after the transfer |
| Track record | Other projects can be checked | Photos of other people's projects, other victims with the same pattern |
Use this table to read the situation. Investigators and judges make the final assessment. If the money was handed over specifically to buy certain goods and was demonstrably spent on something else, ask an advocate whether Article 486 on embezzlement applies. It carries up to 4 years in prison or a category IV fine, up to Rp200 million.
In detik's Advocate column of 2 February 2024, advocate Hadiansyah Saputra set out both routes for a builder case: a breach claim at the district court where the builder is based, and a police report if there was deception before the contract.
Small Claims: Fast, but Conditional
The route covers breach of contract or unlawful acts with a material claim of up to Rp500 million, heard by a single judge. If the contractor fails to appear after two proper summonses, the judge decides in their absence (verstek), and they can still file a challenge within 7 days of notification. A decision made with both sides present can only be met with an objection within 7 days, with no appeal or cassation. Hearings are capped at 25 days, while objections and enforcement add time.
Check three conditions first:
- The defendant's address must be known. Without it, no small claim.
- Same court district. If your contractor also lives in Kota Bekasi, the case goes to PN Bekasi. If they live in Karawang, you need to appoint a representative with an address in that area.
- You must attend every hearing in person, with or without a representative.
Prepare legalised copies of your documents, and be aware that the judge can rule the case is not a simple claim. The judge can also order a conservatory attachment on the defendant's assets, which helps because winning does not mean getting paid. If the contractor has nothing to seize, the process ends on paper. Weigh the amount against your leave days and court costs. The advance fee varies, so ask the registry or check e-Court. If the address is truly gone, what remains is an ordinary civil suit, which is longer and usually needs a lawyer.
A Half-Finished House: Don't Just Swap Workers
Article 1611 of the Civil Code lets the owner end a building contract even after work has begun, but the owner must then compensate all the contractor's costs and lost profit. That article suits an owner who has changed their mind. If the contractor is the one in default, the basis is Article 1267: you choose between forcing performance, where that is still possible, or claiming cancellation with damages. Article 1266 adds that cancellation must be requested from the court, so if your contract has a termination clause, follow it and include cancellation in your claim if needed.
Before new workers come in, record the job with a witness from the neighbourhood association or estate office: photograph every corner, measure what was completed and list the materials on site. That record becomes your claim figure. Say an Rp80 million contract had a 30 percent deposit, so Rp24 million has gone out. If the record shows work and materials worth Rp9 million, the Rp15 million difference is the core of your claim.
What to Write Into the Next Contract
Deposit limits and payment systems are covered in our contractor guide and comparison of lump-sum, daily-wage and foreman arrangements. Add two items that rarely make the list: the signatory's full home address with a copy of their ID card, and a firm completion date, with a sentence saying the contractor is in default once that date passes, without further notice. The address opens the small-claims route, and the date clause puts Article 1238 to work.
The Emerald 70 house on Jl. Raya Perjuangan has 70 m² of floor area on a 47.25 m² plot, so there is limited room for major changes. If you plan to alter the unit after handover, check the renovation limits and estate permits before sending a deposit to anyone.
Frequently Asked Questions
Is a contractor disappearing with a deposit fraud or breach of contract?
It depends on intent when the agreement was made. Supreme Court jurisprudence 4/Yur/Pid/2018 treats failure to perform a valid agreement as breach of contract, unless the agreement was founded on bad faith. A false identity or work that never started points toward bad faith, but investigators and judges make that call.
Can I file a small claim against a contractor whose address is unknown?
No. Perma 2/2015 as amended by Perma 4/2019 bars a small claim (gugatan sederhana) against a defendant whose residence is unknown. That leaves an ordinary civil suit, or a police report if there is a criminal element.
How long does a small claim take?
The hearing stage is capped at 25 days from the first session. Objections and enforcement add time. The decision cannot be appealed or taken to cassation. An objection (keberatan) must be filed within 7 days after the decision is read or notified.
Can I replace the missing contractor straight away?
Not straight away. Send a demand letter, record the completed work with a witness, and follow the termination procedure in your contract. Article 1266 of the Civil Code says cancellation must be requested from the court, so include cancellation in your claim if needed.
Planning to change your unit after handover?
Ask the Kingspoint team about renovation limits and estate permits before you pay any contractor a deposit.
Ask on WhatsAppReferences: Indonesian Civil Code (KUHPerdata) Articles 1238, 1243, 1266, 1267, 1611; Law 1/2023 (Criminal Code) Articles 79, 486, 492; Perma 2/2015 as amended by Perma 4/2019 on small claims (socialisation material by the Chief Judge of PN Tolitoli; Hukumonline, 27 August 2019); Supreme Court jurisprudence 4/Yur/Pid/2018 (Hukumonline, 4 November 2020); detik's Advocate, 2 February 2024. This article is general information, not legal advice. For your own case, consult an advocate or a legal aid organisation.