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Indonesia - Chapter 6 - International Commercial Arbitration in Asia - 3rd Edition

Author(s): 
Tony Budidjaja
Page Count: 
36 pages
Published: 
February, 2013
Jurisdictions: 
Indonesia
Practice Areas: 
Investment Disputes,
National Legislation,
Dispute Resolution & Litigation,
National Institutions and Rules,
Authority of the Arbitral Tribunal,
Specialized Arbitration,
Institutional and Administered Arbitration,
Agreement to Arbitrate,
Confidentiality,
Interim Measures of Protection,
Enforcement of Arbitral Awards,
Grounds for Refusal of Enforcement,
Appeal to Arbitral Tribunal and Annulment
Tags: 
Party Autonomy,
Public Policy
Author Detail: 

Tony Budidjaja is a Principal of the Budidjaja & Associates Law Office Jakarta.

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Description: 

Originally from: International Commercial Arbitration in Asia - 3rd Edition

I. HISTORICAL DEVELOPMENT OF INDONESIAN ARBITRATION LEGISLATION

A. Before and Not Long after the Independence of Indonesia Arbitration is not a new concept in Indonesia. It has been a legitimate means to settle commercial disputes since the Dutch colonial period based on Articles 615-651 of the Reglement op de Burgerlijke Rechtsvordering1 (more commonly known as “Rv”), which was the Dutch Code of Civil Procedure that was applicable to the European population of the colony.

Five years after Indonesia attained its independence,2 as early as 1950, provisions concerning arbitration appeared in Indonesian national legislation, being Law No. 1 of 1950 concerning the Supreme Court.3 According to this Law, in line with Article 631 of the Rv, parties do have a right to appeal against an arbitral award to the Supreme Court.

Table of Contents: 

Chapter 6

Arbitration in Indonesia
I. Historical Development of Indonesian Arbitration Legislation 
A. Before and Not Long After the Independence of Indonesia 
B. The ICSID Convention and Bilateral Investment Treaties 
C. The New York Convention 
D. The Indonesian Arbitration Law 
II. The Current State of Arbitration in Indonesia 
A. The Current Perceptions of Indonesian Businesspeople on Arbitration 
1. Lack of Awareness 
2. Not Appealability of the Awards 
3. Lack of Qualified Arbitrators 
4. Higher Cost 
5. Indonesian Court’s Expertise and Experience in Arbitration 
6. No Special Court to Support Arbitration 
B. The Use of Ad Hoc and Institutional Arbitration in Indonesia 
III. Salient Features of Indonesian Arbitration Law 
A. Arbitration Agreement 
B. Autonomy/Separability of Arbitral Clause 
C. Limited Court Involvement 
D. Party Autonomy 
E. Equal Treatment of the Parties 
F. Confidentiality 
G. Enforceability of Arbitral Awards 
H. Interim Measures 
IV. Enforcement of Arbitral Awards 
A. Distinction between International and National Arbitration Awards 
B. Registration of the Awards 
C. Exequatur 
V. Refusal of Enforcement of Arbitral Awards 
A. Opposition of Enforcement 
VI. Annulment of Arbitral Awards 
A. Grounds for Annulment 
B. Court Process