INDONESIA Law and Practice Contributed by: Emir Nurmansyah, Theodoor Bakker, Ulyarta Naibaho and Adithya Lesmana, ABNR Counsellors at Law
11.3 Standard of Judicial Review In the context of an annulment, the review will analyse the facts against the ground(s) brought forward in the application. Indonesian law does not clearly define the standard of review that would be relevant in determin- ing whether an award must be annulled, but it is safe to assume that the standard is de novo. For elabora - tion on annulment, see 11.1 Grounds for Appeal .
trict court where the losing party resides. The court must issue its decision within 30 days. If the request for annulment is granted, it must specify the conse -
quences of the annulment. No Grounds for Annulment
The Arbitration Law does not provide any other grounds for annulment. An annulment of an arbitral award is, for instance, not possible on the following grounds, all of which are recognised grounds in sev - eral other jurisdictions: • the arbitral tribunal having exceeded the mandate established by the arbitration agreement; • the arbitral tribunal having been improperly com - posed; • the arbitrators having lacked the proper expertise; • the award including matters that were not request - ed; or • the award being in excess of what was claimed. Foreign arbitral awards are not subject to annulment. In practice, losing parties have sought to challenge a request for enforcement in Indonesia before the Cen - tral Jakarta District Court (CJDC). The grounds used were those of refusal of enforcement of an arbitral award as provided under Article 66 of the Arbitration Law – mainly for breach of public policy. This practice is not regulated under the Arbitration Law; see 12.2 Correction of an award by the arbitral tribunal is not provided for in the Arbitration Law. The rules of pro - cedure chosen by the parties or determined as appli - cable by the arbitrators in the absence of such agree - ment will govern any correction or interpretation of an arbitral award. 11.2 Excluding/Expanding the Scope of Appeal Exclusion and expansion of the scope of appeal, or annulment in the context of the Arbitration Law, are not regulated under Indonesian law. Arbitration agree - ments sometimes provide for a waiver of the right to challenge an arbitration award, but the validity of such waiver has not been ruled on by the Indonesian courts. Enforcement Procedure . Correction of an Award
12. Enforcement of an Award 12.1 New York Convention
Indonesia has ratified the 1958 United Nations Con - vention on the Recognition and Enforcement of For - eign Arbitral Awards (the New York Convention), with the contracting state reciprocity reservation and the commercial nature of the dispute reservation. Indonesia has also ratified the 1965 Convention on the Settlement of Investment Disputes between States and Nationals of Other States (the ICSID Convention), and has complied with several awards issued pursu - ant to that treaty. 12.2 Enforcement Procedure International and Domestic Arbitration An international arbitration award is defined by the Arbitration Law as an award handed down by an arbi - tration 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 the laws of the Repub - lic of Indonesia, is deemed an international arbitral award. According to the Indonesian Supreme Court, an arbitration award under ICC Rules issued in Jakarta is deemed an international arbitration award (Supreme Court Case No 904K/Pdt.Sus/2009). The enforcement procedure for international arbitra - tion is different to that for domestic arbitration only in that there is no time limit within which to file an appli - cation, and the CJDC is the only court authorised to deal with enforcement applications. However, if the dispute involves Indonesia as a state, the application must be filed with the Supreme Court, even though the adjudication will be assigned to the CJDC.
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