Arbitration

UNCITRAL Model Law

Is the arbitration law based on the UNCITRAL Model Constabulary?

Law 30/1999 on Arbitration and Alternative Dispute Resolution (the Arbitration Police force) does non adopt the Un Commission on International Merchandise Law (UNCITRAL) Model Law. The legislation that applies to mediation in Indonesia is the Arbitration Law.

Mediation agreements

What are the formal requirements for an enforceable arbitration agreement?

An enforceable mediation understanding must be in writing and signed by the parties.

The parties may agree to proceed to arbitration either earlier or during a dispute. If there is an existing agreement to arbitrate, a notification letter of the alphabet containing certain specified information must be sent to the defendant. Whatever agreement to arbitrate after a dispute arises must besides include:

  • details of the discipline matter of the dispute;
  • the parties' full names, addresses and place of residence;
  • the arbitrator's full proper noun and place of residence;
  • details of where the arbitrator or arbitration panel will make their determination;
  • the full name of the secretary;
  • the menstruum within which the dispute volition be resolved;
  • a argument of willingness signed by the arbitrator; and
  • a statement of willingness signed by the disputing parties that they will deport all costs incurred for the resolution of the dispute through arbitration.

A written agreement without the above is zero and void.

In both cases, an mediation understanding will preclude the parties from submitting the dispute to courtroom. Courts must refuse to be involved in a dispute where the parties accept stipulated arbitration.

Choice of arbitrator

If the arbitration agreement and any relevant rules are silent on the matter, how many arbitrators will exist appointed and how will they be appointed? Are there restrictions on the correct to challenge the appointment of an arbitrator?

Under the Arbitration Law, if the arbitration agreement and any relevant rules are silent on the engagement of the arbitrator, the district court chair is authorised to engage the arbitrator or mediation tribunal.

The disputing parties and the district courtroom chair may cull a sole arbitrator or an arbitral tribunal.

A demand for recusal may exist submitted confronting an arbitrator if sufficient crusade and accurate evidence is found to give rise to doubt that the arbitrator will not perform its duties independently and will be biased in rendering an award.

Arbitrator options

What are the options when choosing an arbitrator or arbitrators?

The Indonesian National Mediation Board (BANI) has its ain puddle of over 100 arbitrators (the BANI list) made up of both Indonesian and strange nationals with varied qualifications and backgrounds. Aside from this, parties tin nominate arbitrators who are not on the BANI listing, provided that they meet BANI's qualification rules and subject to approval from BANI's chair.

Arbitral process

Does the domestic law comprise substantive requirements for the procedure to be followed?

Yep, the substantive requirements for the mediation process in Indonesia are set out in articles 38 to 48 of the Arbitration Law, which provide the following bones procedure:

  • a request for arbitration;
  • a response;
  • a summons;
  • a first meeting;
  • a counter request (if any);
  • an exam of the dispute;
  • an prove review; and
  • an award.

Unless waived or agreed otherwise past the parties, the mandate of the arbitrators is 180 days.

However, under article 34 of the Mediation Constabulary, the resolution of a dispute through mediation may be referred to a national or international mediation institution if the parties agree to it. The resolution of a dispute through institutional mediation must follow the rules and procedure of the designated institution, unless the parties concord otherwise.

Courtroom intervention

On what grounds can the court intervene during an arbitration?

More often than not, the jurisdiction of arbitral tribunals and courts in Indonesia are kept separate. Under the Arbitration Law, the district courts cannot involve themselves in the settlement of a dispute through mediation.

Interim relief

Do arbitrators have powers to grant interim relief?

Yes, at the request of one of the parties, the arbitrator or arbitration tribunal may effect a provisional honour or other interlocutory decision to regulate how the dispute will be examined, including ordering a security attachment, the deposit of appurtenances with tertiary parties or the sale of perishable goods.

Honour

When and in what form must the laurels exist delivered?

Dispute hearings must be completed inside 180 days as of the arbitral tribunal's formation. An award must exist delivered within 30 days of the decision of the hearings.

The honor must contain:

  • a heading of the award containing the words 'demi keadilan berdasarkan ketuhanan yang maha esa' (for the sake of justice based on belief in almighty God);
  • the full names and addresses of the disputing parties;
  • a cursory clarification of the affair in dispute;
  • the respective position of each of the parties;
  • the full names and addresses of the arbitrators;
  • the considerations and conclusions of the arbitrator or mediation tribunal apropos the dispute as a whole;
  • the opinion of each arbitrator, if their opinions differ;
  • the guild of the honour;
  • the identify and appointment of the honor; and
  • the signature of the arbitrator or arbitration tribunal.

Appeal

On what grounds tin an award be appealed to the court?

An arbitration laurels nether Indonesian law is final and binding on both parties and cannot be appealed to whatever court.

Enforcement

What procedures exist for enforcement of foreign and domestic awards?

Within 30 days of a domestic arbitral award being rendered, the original or accurate copy of the award must be submitted for registration to the commune courtroom clerk by the arbitrator or their legal representative. Under the Arbitration Law, if a political party fails to comply with a domestic mediation award, the accolade may exist enforced under an order from the head of the district courtroom at the asking of the other party. The order must be issued inside xxx days after the application for the execution of the award is submitted to the district court registrar. The club of the head judge must be set up out in writing in the original text and an authentic copy of the arbitration award. An arbitration award begetting an execution guild from the caput of the commune court must be enforced following the Civil Lawmaking procedure for the execution of judgments in ceremonious cases that are concluding and binding.

The Central Jakarta District Court has the sole say-so to handle the recognition and enforcement of international mediation awards. An awarding for the enforcement of an international arbitration award can be submitted afterwards the accolade has been submitted for registration to the Central Djakarta Commune Court by the arbitrator or their legal representative. After the head of the district court has issued the writ of execution, farther enforcement is delegated to the caput of the commune courtroom with jurisdiction. An attachment order may be issued against the assets and belongings of the party against whom the award was rendered equally requested in the application for the order. The process for the seizure and attachment of assets in the enforcement of an award must be that required under the Ceremonious Procedure Police.

The procedures and enforcement of foreign and domestic awards has not been affected past changes to the Indonesian political mural.

Costs

Can a successful party recover its costs?

Yes. In general, an arbitration fee determined by the arbitrator is charged to the losing political party. The fee includes:

  • the arbitrator's honoraria, travel expenses and whatever other costs that they accept incurred;
  • the toll of witnesses and expert witnesses required in the hearings on the dispute; and
  • administrative costs.

If a claim is only granted partially, the arbitration fees are charged to the parties as.

Law stated date

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16 April 2020