INDONESIA Law and Practice Contributed by: Nico Angelo Putra Mooduto, Mahareksha Singh Dillon, Talitha Amanda Ekadhani and Bagas Ananta, SSEK Law Firm
3. Initiating a Lawsuit 3.1 Rules on Pre-action Conduct
should exercise caution to ensure that their fund- 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 ordi- narily disclosed publicly. There is also no publicly available jurisprudence from Indonesian courts that specifically addresses the use or implica- tions of third-party funding. Data is unfortunately scarce in this area. 2.3 Third-Party Funding for Plaintiff and Defendant There are currently no regulatory provisions specifying 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 minimum 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 fund- ing. 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.
There are no rules mandating specific pre-action conduct that parties must adhere to before initi- ating court proceedings. However, there are cus- tomary practices and procedural considerations that may influence the approach taken before filing a lawsuit. These customary practices and procedural con- siderations 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 negotiations to resolve the dispute before resorting to litigation. This involves genuine attempts to discuss and amicably settle the issues, especially if contractual provisions so require. Since there is no statutory obligation to under- take 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 Indo- nesian Civil Code. This duration applies unless a specific statute prescribes a shorter period for particular types of claims. A limitation period generally commences from the moment a legal right is infringed or a con- tractual obligation becomes due. In the context
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