Arbitration in Indonesia

Article 11 of the Arbitration Law:

(1)      The existence of a written arbitration agreement shall eliminate the right of the parties to seek resolution of the dispute or difference of opinion contained in the agreement through the District Court.

(2)      The national courts shall refuse and not interfere in settlement of any dispute which has been determined by arbitration except in particular cases determined in this Act.

 

 

Arbitration clause - sample

 

      i.        Any claim, difference, dispute or controversy arising between the parties hereto, arising out of or in connection with this Agreement, including without limitation to,  any question regarding its execution, existence, validity, enforcement, breach, performance, interpretation, implementation, termination, expiration, or the consequences of its nullity, and any dispute relating to any obligation arising out of or in connection with it a (“Dispute“) shall be referred to and finally resolved by Indonesian Arbitration (Badan Arbitrase Nasional Indonesia/”BANI”).

     ii.        The arbitration shall be conducted in accordance with the Arbitration Rules (the “Rules“) of the BANI which Rules, as modified from time to time, are deemed to be incorporated by reference into this Agreement.

    iii.        The seat or legal place of arbitration shall be Jakarta.  The law governing the agreement to arbitrate contained in this Agreement shall be Indonesian law.

   iv.        Neither party shall be entitled to commence or maintain any action in a court of law in Indonesia or elsewhere upon any matter in dispute arising from or in relation to this Agreement except for the enforcement of an arbitral award made in accordance with this Article.

    v.        Solely for the purpose of enforcing any arbitration award, the Parties agree to choose the general, permanent and non-exclusive domicile of the Office of the Registrar of the Central Jakarta District Court (Kantor Panitera Pengadilan Negeri Jakarta Pusat) without prejudice to the Parties’ rights to enforce any arbitration award in any court having jurisdiction over the other party or its assets.