An annulment request  of arbitration decision are commonplace,  filed by the losing party in the arbitration case. In some cases, the annulment request is to delay the execution of the arbitration award. The annulment request must definitely be filed on the basis of reasons which have been determined in limited way, as prescribed in Article 70 of Law No. 30 of 1999 on Arbitration and Alternative Dispute Resolution (“Arbitration Law“)

Nevertheless, there are times when the decision of the annulment request is not in accordance with what it is expected by the applicant. As stipulated in Article 72 paragraph (4) of  Arbitration Law, with the verdict on the request of annulment of arbitration award, an appeal to the Supreme Court, then can be lodged. Furthermore, in the elucidation of Article 72 paragraph (4) is declared,  the “Appeal” is just on the annulment of the arbitration award as referred to in Article 70.

Thus, according to the Arbitration Law an appeal to the Supreme Court, can only be filed in the case of the judges who investigate the annulment request of the arbitration award, do annulment to the arbitration award. On the other hand, if the judges reject the application and the arbitration award remains in force according to the Arbitration Law, then a remedy cannot be filed.

In fact based on the existing precedents, even though the decision at first stage rejects the request for annulment of the arbitral award, the parties who are not satisfied with the decision can still appeal to the Supreme Court through the District Court that investigate the request in the first phase. But, when the decision does not comply with the existing regulations, it will provide the opportunity for the opposing party to file a demurrer or an objection on the appeal in term of formal perspective.

The request of arbitration award annulment is closely related to the registration of the arbitration award according to the provisions of the Arbitration Law. It is clearly stated submitting the request for annulment of arbitration award is allowed after the award has been registered. Registration of an arbitration award to the local Court is the responsibility of the arbitrator / arbitration institution or their legal councel. It is stipulated in Article 59 paragraph (1) of the Arbitration, as follows:

“In a period of 30 (thirty) days from the date the decision is made, the original sheet or an authentic copy of the arbitration award is delivered and registered by the arbitrator or attorney to the  Clerk of District Court.”

The district court is defined as the court which is included in the legal domicile of the applicant of arbitration in the previous arbitration case. After the arbitrator / legal councel applies for the registration, it will be followed up by notification to the litigants. The notification is done by sending a sealed judgment copy that contains the information about the registration at the Registrar of District Court consisting of date and the registration number.

Once this notification is done, but the parties are not satisfied and want to annul the arbitration award, they are allowed to apply for the annulment of the arbitration award, as stipulated in Article 71 of the Arbitration Law.

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Author :

Bimo Prasetio, S.H. dan Fairus Harris, S.H., M.Kn.