INDONESIA Law and Practice Contributed by: Emir Nurmansyah, Ulyarta Naibaho, Adithya Lesmana and Adrian Panata, ABNR Counsellors at Law
12.2 Enforcement Procedure International and Domestic Arbitration
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
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. Conditions for Enforcement In order to seek enforcement in Indonesia, the enforc - ing party must observe Article 66 of the Arbitration Law, which requires fulfilment of the following: • the award was rendered by an arbitrator or arbitral tribunal in a state that has a bilateral or multilateral convention on the recognition and enforcement of arbitral awards with Indonesia (the reciprocity principle); • the subject matter of the dispute falls within the scope of commercial law (the commerciality prin - ciple); • the execution of the award would not violate public policy; and • an exequatur (writ of execution) has been obtained from the chair of the CJDC. There are three relevant steps to enforcing a foreign arbitral award in Indonesia: • registration; • obtaining an exequatur; and • execution ( eksekusi ).
Enforcement Procedure . Correction of an Award
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. 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 . 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. Enforcement of an Award 12.1 New York Convention
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