{"id":120700,"date":"2025-11-24T09:39:32","date_gmt":"2025-11-24T09:39:32","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=120700"},"modified":"2025-11-24T09:39:32","modified_gmt":"2025-11-24T09:39:32","slug":"indonesia-international-arbitration","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/indonesia-international-arbitration\/","title":{"rendered":"Indonesia: International Arbitration"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-120700","comparative_guide","type-comparative_guide","status-publish","hentry","guides-international-arbitration","jurisdictions-indonesia"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">ATD Law in association with Mori Hamada<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2025\/11\/20240806_MoriHamada_Logo_Jakarta_Official_rgb-2.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">ATD Law in association with Mori Hamada<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2025\/11\/20240806_MoriHamada_Logo_Jakarta_Official_rgb-2.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of International Arbitration laws and regulations applicable in Indonesia<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What legislation applies to arbitration in your country? Are there any mandatory laws?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Arbitration in Indonesia is primarily governed by Law No. 30 of 1999 on Arbitration and Alternative Dispute Resolution (\u201cArbitration Law\u201d). The Arbitration Law defines an international arbitral award as one rendered outside Indonesian territory or otherwise qualifying as such under Indonesian law. In practice, an award rendered by a tribunal seated and administered in Indonesia\u2014even in disputes with a foreign element\u2014will be treated and enforced as a domestic award.<\/p>\n<p>The Supreme Court of the Republic of Indonesia (\u201cSCRI\u201d) has issued, among others:<\/p>\n<ol>\n<li>SCRI Regulation No. 1 of 1990 on Procedures for Enforcing Foreign Arbitration Awards; and<\/li>\n<li>SCRI Regulation No. 3 of 2023 on Procedures for Court Appointment of Arbitrators, Challenges to Arbitrators, and the Examination of Applications for the Enforcement and Annulment of Arbitral Awards (\u201cSCRI Regulation 3\/2023\u201d).<\/li>\n<\/ol>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is your country a signatory to the New York Convention? Are there any reservations to the general obligations of the Convention?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Indonesia ratified the 1958 New York Convention (\u201cNYC\u201d) through Presidential Decree No. 34 of 1981, with reservations that: (i) the award must concern a commercial dispute; and (ii) the award must have been rendered in a contracting state.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What other arbitration-related treaties and conventions is your country a party to?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Indonesia is a party to the ICSID Convention (1965), ratified by Law No. 5 of 1968.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the law governing international arbitration in your country based on the UNCITRAL Model Law? Are there significant differences between the two? Are there any impending plans to reform the arbitration laws in your country?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Arbitration Law is not modeled on the UNCITRAL Model Law, though it reflects similar principles: confidentiality, party autonomy, limited court intervention, competence-competence, separability, finality, and limited recourse. Key differences include more formalistic requirements for arbitration agreements, specific arbitrator qualifications, and limited provisions on interim measures. Although amendment of the Arbitration Law is on the national legislative program and has been discussed, timelines remain uncertain.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What arbitral institutions (if any) exist in your country? When were their rules last amended? Are any amendments being considered?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Notable institutions include:<\/p>\n<ol>\n<li>Indonesian National Board of Arbitration (<em>Badan Arbitrase Nasional Indonesia,<\/em> \u201cBANI\u201d), latest rules is the BANI Arbitration Rules 2025.<\/li>\n<li>National Sharia Arbitration Board (<em>Badan Arbitrase Syariah Nasional,<\/em> \u201cBasyarnas\u201d) \u2013 its latest rules is Basyarnas Arbitration Rules 2021.<\/li>\n<li>Alternative Dispute Settlement Institution for the Financial Services Sector (<em>Lembaga Alternatif Penyelesaian Sengketa Sektor Jasa Keuangan,<\/em> \u201cLAPS SJK\u201d) \u2013 its latest rules is LAPS SJK Rules Number: PER-02\/LAPS-SJK\/I\/2021.<\/li>\n<\/ol>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a specialist arbitration court in your country?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No. Registration and enforcement of awards are handled by the district courts. Recognition and enforcement of international commercial awards are typically sought before the Central Jakarta District Court (\u201cCJDC\u201d).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the validity requirements for an arbitration agreement under the laws of your country?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>An arbitration agreement must meet both substantive and formal requirements to be considered valid.<\/p>\n<ul>\n<li><strong>Substantive:<\/strong> The agreement must satisfy Indonesian Civil Code requirements (consent, capacity, specific subject matter, lawful cause). It may only cover commercial disputes and rights within the parties\u2019 control. Non-settleable matters are not arbitrable.<\/li>\n<li><strong>Formal:<\/strong> The agreement must be in writing and signed by the parties. If concluded after a dispute arises and signatures cannot be obtained, it must be executed in a notarial deed and include the specific contents required by the Arbitration Law.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are arbitration clauses considered separable from the main contract?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Arbitration Law recognizes the separability principle.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do the courts of your country apply a validation principle under which an arbitration agreement should be considered valid and enforceable if it would be so considered under at least one of the national laws potentially applicable to it?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Indonesian courts will assess whether the arbitration clause sought for enforcement satisfies the formal and substantive requirements under Indonesian law rather than applying a conflicts-of-laws validation approach.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are asymmetric arbitration clauses \u2013 for instance, where one party has the right to choose between arbitration or litigation while the other party does not have this option \u2013 valid in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Parties may agree to asymmetry as a manifestation of party autonomy, but such clauses may face practical challenges in litigation. In the insurance sector, laws require an asymmetric dispute resolution clause allowing customers to choose between LAPS SJK and the courts.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In what instances can third parties or non-signatories be bound by an arbitration agreement? Are there any recent court decisions on these issues?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Arbitration Law contemplates voluntary intervention by a third party only if: (i) it has a legitimate interest; (ii) the original parties\u2019 consent; and (iii) the tribunal permits joinder. Non-consensual joinder is not provided for<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any recent court decisions in your country concerning the choice of law applicable to an arbitration agreement where no such law has been specified by the Parties?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are no recent Supreme Court decisions in Indonesia that establish a specific conflict of laws test for determining the law of the arbitration agreement when the contract is silent. However, the prevailing legal framework and judicial attitude can be summarized as follows:<\/p>\n<ul>\n<li><strong>Statutory Default<\/strong> (<em>Lex Arbitri<\/em>): In the absence of a specific choice of law by the parties, the law of the place of arbitration applies (see elucidation of Article 56(2) of the Arbitration Law).<\/li>\n<li><strong>Judicial Tendency<\/strong> (<em>Lex Fori<\/em>): In practice, when enforcement or annulment is sought in Indonesia, courts frequently apply mandatory Indonesian law to test the validity of the arbitration agreement.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is the law applicable to the substance determined? Is there a specific set of choice of law rules in your country?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Party autonomy prevails. Parties may choose the governing law and whether the tribunal decides based on the law or <em>ex aequo et bono<\/em>. If silent, consistent with the approach above, the law of the seat applies.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In your country, are there any particular requirements for and\/or restrictions in the appointment of arbitrators?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Arbitration Law provides specific requirements for an arbitrator, including age limit (35 years old) and possesses at least 15 years of professional experience in the relevant field. Judges, prosecutors, court registrars and officers may not be appointed.<\/p>\n<p>An arbitrator also must disclose any circumstances likely to give rise to justifiable doubts as to their independence or impartiality.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can the local courts intervene in the selection of arbitrators? If so, how?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Court intervention is limited in the constitution of the arbitral tribunal only as an appointing authority in the case of deadlock. In practice, this judicial role arises almost exclusively in ad hoc arbitrations, since institutional arbitrations shall apply their own appointing mechanism. Therefore, the court\u2019s power operates only where the applicable institutional or contractual mechanism fails to constitute the tribunal.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can the appointment of an arbitrator be challenged? What are the grounds for such a challenge? What is the procedure for such a challenge?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Appointments may be challenged on the grounds of a conflict of interest or doubts regarding independence and impartiality.<\/p>\n<ol>\n<li><strong>Procedure:<\/strong> Parties must first exhaust applicable institutional rules. In <em>ad hoc<\/em> proceedings, a written objection must be lodged within 14 days of the appointment or discovery of relevant facts to the other party and the challenged arbitrator. If the arbitrator was appointed by the court, the challenge shall be filed with the relevant court.<\/li>\n<li><strong>Judicial Intervention:<\/strong> If the challenge is rejected or the arbitrator refuses to withdraw, the matter is referred to the chairman of the district court for a final, unappealable decision.<\/li>\n<\/ol>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Have there been any recent developments concerning the duty of independence and impartiality of the arbitrators, including the duty of disclosure?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>SCRI Regulation 3\/2023 reinforces the duty of independence by establishing a strict procedural timeline for challenges if a party challenges an arbitrator\u2019s impartiality, so that the court must render a final and binding decision on the challenge within 14 days.<\/p>\n<p>BANI Arbitration Rules 2025 introduced an expanded disclosure requiring arbitrators to sign a &#8216;statement of independence&#8217; and allowing removal of an arbitrator for failure to act \u2013 which covers inability to perform duties impartially.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are arbitrators immune from liability?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Arbitration Law confers qualified immunity, shielding arbitrators from liability for acts performed in their official capacity, unless bad faith is established.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the principle of competence-competence recognized in your country?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. The core principle of competence-competence is recognized under the Arbitration Law, albeit not spelt out.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the approach of local courts towards a party commencing litigation in apparent breach of an arbitration agreement?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The court must decline jurisdiction if a valid arbitration agreement exists, upholding the principle of non-intervention. However, if a party commences litigation despite an arbitration agreement, and the respondent fails to object and continues to fully litigate the case, both parties are deemed to have waived or rescinded the arbitration agreement.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What happens when a respondent fails to participate in the arbitration? Can the local courts compel participation?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Arbitration Law does not empower courts to compel a party to participate in an arbitration, but it empowers a properly constituted tribunal to continue the proceedings ex-parte, if the the respondent fails to appear after being properly summoned, and the arbitration tribunal may grant the claimant\u2019s claim in full (unless the claim is unfounded or contrary to law).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can third parties voluntarily join arbitration proceedings? If all parties agree to the intervention, is the tribunal bound by this agreement? If all parties do not agree to the intervention, can the tribunal allow for it?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. A third party may join voluntarily with the consent of the original parties and the tribunal\u2019s leave. There is no statutory basis for non-consensual joinder.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What interim measures are available? Will local courts issue interim measures pending the constitution of the tribunal? Are anti-suit and\/or anti-arbitration injunctions available and enforceable in your country?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under Article 32(1) of the Arbitration Law, tribunals may order provisional measures (e.g., conservatory attachment\/<em>sita jaminan<\/em>). Courts cannot issue pre-tribunal interim measures, but SCRI Regulation 3\/2023 allows courts to assist in executing tribunal-ordered attachments. Indonesian courts do not issue or recognize anti-suit or anti-arbitration injunctions.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there particular rules governing evidentiary matters in arbitration? Will the local courts in your jurisdiction play any role in the obtaining of evidence? Can local courts compel witnesses to participate in arbitration proceedings?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Evidentiary rules are consistent with Indonesian civil procedure (documents, fact and expert testimony). The Arbitration Law does not provide general court assistance for evidence-taking (e.g., discovery\/production), and courts cannot compel witnesses to participate in arbitration.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What ethical codes and other professional standards, if any, apply to counsel and arbitrators conducting proceedings in your country? Do these codes and professional standards apply only to counsel and arbitrators having the nationality of your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Arbitral institutions in Indonesia, notably BANI, issue mandatory codes of ethics that bind arbitrators in cases administered institutionally under its rules regardless of nationality.<\/p>\n<p>Counsels are usually Indonesian advocates who are subject to the Indonesian Advocates Law and the code of ethics of the relevant advocate organization, which also applies for foreign counsels who are locally registered.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In your country, are there any rules with respect to the confidentiality of arbitration proceedings?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Arbitration Law imposes statutory confidentiality on both the proceedings (mandating closed hearings) and the arbitral award itself.<\/p>\n<p>However, when a party seeks either annulment or enforcement before the relevant district court, court filings (including the parts of the award) and the subsequent judicial decisions enter the public record via court directories, potentially revealing details of the dispute.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are the IBA guidelines on conflicts of interest and other similar soft law sources viewed by courts and tribunals in your jurisdiction? Are they frequently applied?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The IBA Guidelines and similar soft law instruments are not binding under Indonesian law but function as significant persuasive authority and a key frame of reference. Counsels with experience working on international arbitration matters are familiar with the IBA Guidelines and other soft law sources, but local courts, under their limited statutory roles, seldom rely on them.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are the costs of arbitration proceedings estimated and allocated? Can pre- and post-award interest be included on the principal claim and costs incurred?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><ul>\n<li><strong>Arbitration cost.<\/strong> Costs are estimated via institutional fee schedules that require parties to remit advances on costs corresponding to the value in dispute. Allocation generally follows the principle that cost follows the event. The tribunal, however, retains broad discretion to allocate costs proportionally if claims succeed only in part, or based on the parties&#8217; conduct.<\/li>\n<li><strong>Pre- and post- award interest.<\/strong> Tribunals first rely on the parties&#8217; agreement and the applicable substantive law to determine the inclusion and rate of interest. Where Indonesian law governs the merits and the contract is silent, tribunals may award the statutory interest rate. The final determination of any interest award remains subject entirely to the tribunal\u2019s assessment.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are applications for security for costs viewed in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Neither the Arbitration Law nor the typical institutional rules (like BANI&#8217;s) provide an explicit, formal rule for ordering security for costs. In practice, therefore, applications for security for costs are uncommon in Indonesian-seated arbitrations.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What legal requirements are there in your country for the recognition and enforcement of an award? Is there a requirement that the award be reasoned, i.e. substantiated and motivated?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>From the formalities standpoint, an international arbitral award must be registered with the CJDC before an <em>exequatur<\/em> can be sought. If the matter is related to Sharia law, the registration and exequatur shall be sought from the Central Jakarta Religious Court (\u201cCJRC\u201d). The registration process is done by the arbitrator\/tribunal or their proxy, which requires the tribunal to grant power of attorney before the tribunal becomes <em>functus officio.<\/em> The award should also be submitted in an authenticated form and translated into Indonesian language.<\/p>\n<p>From the substantive standpoint, parties seeking to enforce an international arbitral award must show that the award (i) was rendered in a NYC-party jurisdiction or there is a bilateral treaty to the same effect, (ii) is of a commercial nature, and (iii) does not violate Indonesian public policy.<\/p>\n<p>Although the Arbitration Law expressly requires domestic awards to set out reasons (i.e., consideration and conclusion), for international awards enforcement, Indonesian courts do not re-weigh the merits of the award but in the face of an insufficiently reasoned award, the courts may refuse exequatur if recognition would breach Indonesian public policy, including fundamental due process and procedural fairness, unless parties have clearly agreed otherwise in advance.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the estimated timeframe for the recognition and enforcement of an award (domestic and international)? Can a party bring a motion for the recognition and enforcement of an award on an ex parte basis? Would the standard of review be different for domestic and international awards?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>SCRI Regulation 3\/2023 imposes distinct deadlines:<\/p>\n<ol>\n<li><strong>Domestic awards:<\/strong> registration within 30 days of issuance; filing in 3 days; enforcement order within 30 calendar days of filing.<\/li>\n<li><strong>International awards:<\/strong> no statutory registration deadline; filing within 14 days; exequatur by the CJDC\/CJRC within 30 calendar days of filing.<\/li>\n<\/ol>\n<p>In practice, timelines may vary. Proceedings are typically <em>ex parte<\/em>, unless the award debtor challenges. Standards of review differ: domestic annulment grounds are limited; international recognition focuses on NYC criteria and public policy.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can arbitration awards be appealed or challenged in local courts? What are the grounds and procedure in this regard? Is it possible for parties to waive any rights of appeal or challenge to an award by agreement?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Arbitration Law provides limited grounds to set aside domestic awards, namely (i) forgery\/falsified document, (ii) concealed decisive documents discovered after an award is issued, or (iii) fraud\/deception\u2014and the application for annulment must be filed with the relevant district court within 30 days of registration.<\/p>\n<p>It is widely accepted that Indonesian courts have no jurisdiction to set aside foreign arbitral awards. That said, as noted in Q#30, an international award is enforceable in Indonesia only if the statutory requirements are met. A losing party may therefore attempt to resist recognition and enforcement by arguing that these requirements are not satisfied.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In what instances can third parties or non-signatories be bound by an award? To what extent might a third party challenge the recognition of an award?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As a general rule, Indonesian law follows privity of contract principle. So, only parties that agreed to arbitrate are bound by the arbitration agreement and the resulting award, subject to established exceptions such as successions or guarantors.<\/p>\n<p>A third party generally lacks standing to challenge the recognition or annulment of an award, as this right is reserved for the parties to arbitration. However, a third party may challenge the subsequent enforcement action taken by the award-creditor if the execution of the award directly affects their separate legal rights or property.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any rules \/ court decisions that regulate or prohibit third party funding of arbitration proceedings \u2013 for instance, where funding by an entity not involved in the dispute in return for a share of the eventual award may be barred \u2013 in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Arbitration Law is silent and TPF is uncommon in Indonesia.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is emergency arbitrator relief available in your country? Are decisions made by emergency arbitrators readily enforceable?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Arbitration Law does not contain provisions on emergency arbitrators or their orders\/awards. BANI introduced an emergency arbitration protocol in its 2025 Rules. Whilst the SCRI Regulation 3\/2023 provides framework for the enforcement of conservatory attachment as an interim measure in support of arbitration, the enforceability of the same in the context of an emergency arbitration remains untested.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there arbitral laws or arbitration institutional rules in your country providing simplified or expedited procedures for claims under a certain value? Are they often used?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Although Arbitration Law does not provide specific procedures, it mandated a tribunal to resolve the dispute within 180 days from its constitution, even for regular procedures, though this period may be extended by the tribunal or with parties\u2019 consent.<\/p>\n<p>We note that the LAPS SJK 2021 Rules provide an expedited procedure for (i) small &amp; retail claims subject to specified thresholds and (ii) claims deemed urgent by LAPS SJK\u2019s management. Under the rules, expedited proceedings must be completed within a maximum of 90 days from the tribunal\u2019s constitution.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Have there been any recent court decisions in your country considering the setting aside of an award that has been enforced in another jurisdiction or vice versa?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>While there are no specific published Indonesian decisions on this matter, Indonesian courts may refuse enforcement based on a prior foreign annulment, but this is discretionary. In practice, the primary legal avenue for resistance remains the argument that recognition of the contested award would violate Indonesian public policy.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Have there been any recent court decisions in your country considering the issue of corruption? What standard do local courts apply for proving corruption? Which party bears the burden of proving corruption?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>While there is no recent court decision and the Arbitration Law does not explicitly delineate the interplay between corruption and the enforceability of an arbitral award, a corruption\u2014evidenced by a final and binding judicial determination\u2014in the genesis of the underlying commercial res is deemed material to the assessment of public policy during enforcement.<\/p>\n<p>A final and binding corruption verdict would lead the judiciary to preclude the recognition and execution of an award, positing that its sanction would be fundamentally contrary to Indonesian public policy, particularly where potential prejudice to state finances is concerned.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Have there been any recent court decisions in your country with respect to intra-European investor-State arbitration generally or enforcement of awards stemming from proceedings of this nature? Are there any pending decisions?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are currently no publicly available Indonesian court decisions concerning the enforcement of intra-European investor\u2013State arbitral awards.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Have arbitral institutions in your country implemented reforms towards greater use of technology and a more cost-effective conduct of arbitrations? Have there been any recent developments regarding virtual hearings?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Generally, arbitral institutions in Indonesia have implemented reforms aimed at increasing the use of technology, e.g., BANI launched an online platform in 2024, allowing hearings to be conducted via teleconference. Despite these reforms, practical implementation remains limited, and the proceedings are still heavily paper-based, but the adoption of digital tools is evolving.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Have there been any recent developments in your jurisdiction with regard to disputes involving ESG issues such as climate change, sustainability, social responsibility and\/or human rights?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is a growing interest in this matter, including four residents of Pari island in Indonesia filed a lawsuit before a Swiss court for a violation of personality rights under the Swiss Civil Code due to CO\u2082 emissions produced by a cement manufacturer, and the Ministry of Environment actively pursuing law suits against corporations to recover damages from environmental pollution.<\/p>\n<p>While the Indonesian Environmental Law provides room for environmental disputes to be settled through arbitration, there have been no notable advancements in ESG-related disputes within Indonesia\u2019s arbitration landscape.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Have any international economic sanctions regimes been implemented (either independently, or based on EU law) in your jurisdiction recently? Have there been any recent decisions in your country considering the impact of sanctions on international arbitration proceedings?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>We are not aware of any published Indonesian court decisions recently that specifically address the impact of sanctions on arbitration proceeding and its award in Indonesia.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Has your country implemented any rules or regulations regarding the use of artificial intelligence, generative artificial intelligence or large language models in the context of international arbitration?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>To date, there are no specific rules\/regulations governing the use of generative artificial intelligence in the context of international arbitration.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">3747<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/120700","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=120700"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}