INDONESIA Law and Practice Contributed by: Nico Angelo Putra Mooduto, Mahareksha Singh Dillon, Talitha Amanda Ekadhani and Bagas Ananta, SSEK Law Firm
ing arrangements do not violate public policy or any mandatory provisions under Indonesian law. 2.2 Third-Party Funding: Lawsuits There are currently no regulations on the types of lawsuits that are available for third-party funding. Any third-party funding in Indonesia is not ordinarily disclosed publicly. There is also no publicly available jurisprudence from Indonesian courts that specifically addresses the use or implications of third-party fund- ing. Data is unfortunately scarce in this area. 2.3 Third-Party Funding for Plaintiff and Defendant There are currently no regulatory provisions specify- ing whether or not third-party funding is available to plaintiffs and defendants. 2.4 Minimum and Maximum Amounts of Third-Party Funding There are currently no regulatory provisions on mini- mum or maximum amounts a third-party funder will fund. 2.5 Types of Costs Considered Under Third- Party Funding There are currently no regulatory provisions on the costs a third-party funder will consider funding. 2.6 Contingency Fees The law does not prohibit any specific type of fee arrangement. It is therefore possible for lawyers to act on a contingency fee basis. 2.7 Time Limit for Obtaining Third-Party Funding There are currently no time limits by when a party to the litigation should obtain third-party funding.
These customary practices and procedural consid- erations serve as evidence of a good faith attempt to resolve the matter without litigation and may be favourably considered by the court and include the following. • Demand Letter(s): It is common practice to issue a demand or warning letter as a formal notice to the other party, detailing the claims and demands. • Pre-Action Mediation or Negotiation: Parties are generally expected to engage in good faith nego- tiations to resolve the dispute before resorting to litigation. This involves genuine attempts to discuss and amicably settle the issues, especially if con- tractual provisions so require. Since there is no statutory obligation to undertake pre-action conduct, there are no penalties for failing to do so. 3.2 Statutes of Limitations The limitation period for bringing a civil suit is typically 30 years under Article 1967 of the Indonesian Civil Code. This duration applies unless a specific stat- ute prescribes a shorter period for particular types of claims. A limitation period generally commences from the moment a legal right is infringed or a contractual obli- gation becomes due. In the context of tortious liability, the limitation period begins when the aggrieved party becomes aware, or reasonably ought to have become aware, of the injury and the identity of the liable party. 3.3 Jurisdictional Requirements for a Defendant The determination of jurisdiction in which a claim is filed against the defendant depends on the nature of the claim, the location of the parties, and the sub- ject matter of the dispute. Several considerations are taken into account when identifying the appropriate venue for filing such a lawsuit, including the following. • Domicile or Place of Business: Jurisdiction is gen- erally determined based on the defendant’s domi- cile or registered place of business. A lawsuit must be filed in the district court where the defendant resides or where the entity is headquartered.
3. Initiating a Lawsuit 3.1 Rules on Pre-Action Conduct
There are no rules mandating specific pre-action con- duct that parties must adhere to before initiating court proceedings. However, there are customary practices and procedural considerations that may influence the approach taken before filing a lawsuit.
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