Enforcement of International Arbitral Award in Indonesia

 In Arbitrase

Arbitration Law gives authority to the Central Jakarta District Court to handle matters with respect to the recognition and enforcement of an international arbitral award.
Arbitration is now a quite popular method of alternative dispute resolution among businesses. Arbitration law in Indonesia is regulated by Law Number 30 of 1999 on Arbitration and Alternative Dispute Resolution (hereinafter Arbitration Law)

One of the important matters addressed in Arbitration Law is international arbitral award, defined as:

“An award handed down by an arbitration institution or individual arbitrator outside the jurisdiction of the Republic of Indonesia, or an award by an arbitration institution or individual arbitrator which, under the provisions of Indonesian law, is deemed to be an international arbitration award.”

From the definition mentioned above, it is understood that if an arbitral tribunal consists of a foreign arbitrator, yet the seat of arbitration is in Indonesia, the arbitral award will be regarded as a national arbitral award.

Enforcement of International Arbitral Award in Indonesia
Article 65 of Arbitration Law expressly states that the Central Jakarta District Court is the court that has the authority to handle matters with respect to the recognition and enforcement of an international arbitral award.

For an international arbitral award may be recognized and enforced in the jurisdiction of the Republic of Indonesia, the award shall fulfil the following criteria:

  1. the international arbitral award is rendered by an arbitrator or arbitral tribunal in a country which is bound to the Republic of Indonesia by a bilateral or multilateral treaty on the recognition and enforcement of international arbitral awards;
  2. the international arbitral award contemplated in item (1) are limited to awards which are included within the scope of commercial law under Indonesian law;
  3. the international arbitral award contemplated in item (1), which may only be enforced in Indonesia, are limited to those which do not conflict with public order;
  4. an international arbitral award may be enforced in Indonesia after obtaining a writ of execution from the Chairman of the Central Jakarta District Court; and
  5. the international arbitral award contemplated in item (1), which involve the State of the Republic of Indonesia as one of the parties to the dispute, may only be enforced after obtaining an exequatur from the Supreme Court of the Republic of Indonesia, which will then delegate it to the Central Jakarta District Court.

An application to enforce an international arbitral award may be submitted after the award has been delivered to the Clerk of the Central Jakarta District Court and registered there by the arbitrator or his/her/its proxy.

BP Lawyers can assist you
We can assist you in providing the best solution to the problems or disputes related to contracts, settlement through the arbitration process and the general judiciary. You can contact us by:

Email: bpl@smartlegal.id
Phone: +62821-1234-1235

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