INDONESIA Law and Practice Contributed by: Nico Angelo Putra Mooduto, Mahareksha Singh Dillon, Talitha Amanda Ekadhani and Bagas Ananta, SSEK Law Firm
mediation process. This process is private and closed to the public unless all parties involved agree to open it. Any statements or admissions made during mediation are deemed inadmissible as evidence in any subse- quent court proceedings concerning the same dispute if no settlement is achieved. Additionally, all records maintained by the mediator during the mediation pro- cess must be destroyed at its conclusion. Further- more, mediators are not permitted to testify as wit- nesses in any related court proceedings. 8.3 Enforcement of Settlement Agreements In Indonesia, the enforceability of a settlement agree- ment depends on whether it has been ratified by the court. When parties reach an agreement during court- mandated mediation, the panel of judges can ratify the settlement agreement, making it equivalent to a final and binding court judgment. This court-ratified settle- ment is enforceable through legal mechanisms avail- able for court judgments, allowing the prevailing party to take enforcement actions, such as asset seizure or garnishment, if the other party does not comply. Settlement agreements reached outside of court, without formal ratification, are treated as private con- tracts. While they are binding on the parties involved, enforcement depends on the willingness of both par- ties to uphold the terms. If one party fails to com- ply, the other party may need to file a new lawsuit for breach of contract to enforce the agreement through the court. 8.4 Setting Aside Settlement Agreements A settlement agreement may be set aside under spe- cific circumstances. Typically, the main scenarios in which a settlement agreement can be set aside, include: • fraud; • misrepresentation; • duress; or • violations of Indonesian law or public policy. Courts have also emphasised that a settlement agree- ment ratified as a settlement deed carries the same binding force as a judgment, and therefore may only
be annulled through extraordinary legal remedies (such as annulment under Article 1858 of the Civil Code or, in rare cases, through a separate civil action alleging deceit or duress). 9. Damages and Judgment 9.1 Awards Available to the Successful Litigant In Indonesia, a successful litigant can receive vari- ous forms of awards, depending on the nature of the case, the claims made, and the evidence provided. At the full trial stage, remedies focus on compensa- tory and declaratory relief, as Indonesian law typically emphasises restitution over punitive measures. The main forms of awards and remedies available to a suc- cessful litigant include the following. • Monetary Damages in the Form of Material and Immaterial Damages: Material damages refer to tangible financial losses in the form of expenses, losses, and interest, while immaterial damages address losses related to future opportunities, emotional distress, or reputational harm, although they are less frequently awarded. For cases involv- ing overdue payments or financial losses, courts may award interest as per Article 1250 of the Indonesian Civil Code. This typically applies a rate of 6% per annum from the date it is requested from the court until full payment is made. • Declaratory Relief: (a) Declaration of Rights: A court may issue a declaratory judgment that clarifies the rights and obligations of the parties. This type of relief is commonly used in contractual disputes, property disputes, and cases where legal sta- tus or ownership must be determined. (b) Recognition of Title or Ownership: In property and land disputes, the court may declare the rightful owner, thereby resolving conflicting ownership claims. Declaratory relief can also apply to intellectual property, affirming the rights of the rightful holder. • Specific Performance: In cases involving contrac- tual obligations, the court may order the breaching party to fulfil their contractual duties. While specific performance is less common in Indonesian courts
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