INDONESIA Law and Practice Contributed by: Enny Purnomo Widhya, Nugrahani Astiyanti and I Gusti Ngurah Oka Anantajaya, Mochtar Karuwin Komar
be recognised in the courts of Indonesia. In Indone - sian proceedings, a judgment of foreign court could be offered, and accepted, into evidence and may be given such evidentiary weight as the courts of Indone - sia may deem appropriate under the circumstances. Under Indonesian law, the lessee has no immunity from suit, execution, attachment or other legal pro - cess for commercial transactions. 2.6.6 Domestic Courts’ Recognition of Foreign Judgments/Awards Judgments from a foreign court are not recognised or enforceable in an Indonesian court. The Indonesian courts would not enforce any other order including: • judgment; • foreign decree; or • other executive act confiscating the aircraft regard - less of the mortgagee’s security interest in it, without a rehearing of the issues. However, in any Indonesian court proceedings, a judgment of a for - eign court could be offered and accepted into evi - dence and may be given such evidentiary weight as the Indonesian court may deem appropriate under the circumstances. As Indonesia has ratified the New York Convention on Foreign Arbitral Awards, arbitral awards rendered in foreign countries should be able to be enforced in Indonesia subject to compliance with certain condi - tions (as referred in 2.6.12 Enforcement of Foreign Arbitral Decisions ). 2.6.7 Judgments in Foreign Currencies If so requested, an Indonesian court may render a judgment in a currency that differs from legal tender in Indonesia. However, such a decision will be at the full discretion of the court. 2.6.8 Limitations on Lessors’ Actions Following Termination As long as such matters are agreed between the par - ties under the lease agreement, the lessor should be able to recover any default interest following termina - tion of the lease for default and also additional rent, with certain limitations such as the principle of good
faith and reasonableness which could be applied by the court if challenged by the lessee during the pro - ceeding. 2.6.9 Lessor’s Requirement to Pay Taxes/Fees For any tax advice, please consult with an Indonesian tax consultant on this matter. 2.6.10 Mandatory Notice Periods There are no mandatory notice periods for the termi - nation of an aircraft lease under Indonesian law. A les - sor must comply with any contractual notice periods contained in the lease. Additionally, although a lessor may not be contractually required under a lease to issue default notices in the event of default(s) by the lessee, it is recommended under common practice for a lessor to first issue default notice(s) to the lessee prior to terminating an aircraft lease. Usually, a default notice would be issued up to two or three times with a reasonable period in between to show good faith on the part of the lessor. 2.6.11 Lessees’ Entitlement to Claim Immunity Under Indonesian law, a lessee has no immunity sov - ereign or otherwise from suit, execution, attachment or other legal process for commercial transactions. 2.6.12 Enforcement of Foreign Arbitral Decisions Indonesia has ratified the 1958 New York Conven - tion on the Recognition and Enforcement of Foreign Arbitral Awards. Arbitral awards rendered in foreign countries should be enforceable in Indonesia, pro - vided that the award: • is rendered in a country with which the Republic of Indonesia is bound by a treaty, either bilateral or multilateral, concerning the recognition and enforcement of international arbitral awards; • arises out of a dispute which is “commercial” in nature under Indonesian law; • is not contrary to public order in the Republic of Indonesia; and • has been registered with and an exequatur (writ of execution) obtained from the Chairman of the District Court of Central Jakarta.
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