INDONESIAN

ARBITRATION
 Definitions:
 Subekti (1992:1) arbitration is a
settlement of dispute by a judge
or a team of judges subject to
the agreement reached by the
disputing parties who will
comply with the decision of the
judges they have
appointed/chosen
 Cont….
 Article 1 of Law no. 30 Year
1999 regarding Arbitration and
Alternative Dispute Settlement
stated that arbitration is a
method of settling dispute
outside court proceedings which
is based on an arbitration
agreement executed by the
parties
 Why arbitration?

 Lack of trust to the existing

court system
 Speedy process

 Conducted confidentially

 Freedom to choose the

arbitrator
 Cont….

 Expertly settled
 Final and binding decision

 Low cost involved

 Freedom to choose
applicable law
 Types of arbitration
 Ad hoc arbitration which is set
up specifically for settlement of
a particular dispute

 Institutional arbitration which

is set up to serve as a
permanent arbitral body
 Indonesian arbitral body

 Badan Arbitrase Nasional

Indonesia (BANI)
 Badan Arbitrase Muamalat
Indonesia (BAMUI)
 Scope of arbitration
 According to Law no. 30 Year
1999, arbitration in Indonesia
shall cover a wide variety of
disputes, namely all civil
disputes such as business
dispute, labour dispute and
other private disputes
 Legal principles
of Indonesian Arbitration

 Law no. 30 Year 1999 regarding

arbitration and alternative
dispute settlement
 Law no 5 Year 1968 regarding
the ratification of International
Convention on the settlement of
investment disputes
 Cont….
 Presidential Decree no 34 Year
1981 regarding the ratification of
the New York Convention 1958
 Indonesian Supreme Court
Regulation no 1 Year 1990
regarding further regulation for
the acknowledgement and
implementation of foreign
arbitration
 Arbitration Procedures
 Submission of application
 If no arbitrator is appointed by
the disputing parties, the
chairman of the arbitral body will
appoint a team of arbitrators to
be in charge of assisting the
parties in settling their dispute
 Examination Process and
determination of period required
for the settlement of a dispute
 Judgement
 Registration of the arbitration
decision to the relevant state
court by a member of the
arbitrators or a person granted a
POA to act for and on the behalf
of the arbitrators
 Application to the relevant state
court for execution
THE END

Thank You