INDONESIA Law and Practice Contributed by: Nico Angelo Putra Mooduto, Mahareksha Singh Dillon, Talitha Amanda Ekadhani and Bagas Ananta, SSEK Law Firm
7.8 General Timeframes for Proceedings The duration required for a district court to con- clude its examination of a case can vary widely, influenced by factors including the case’s com- plexity, the number of involved parties, and potential delaying tactics by counterparties, particularly foreign ones. Although courts generally schedule disputes promptly, procedural delays are inevitable. To mitigate such delays, the Supreme Court issued Circular Letter No 2 of 2014 regarding Comple- tion of Cases in the Court of First Instance and Court of Appeal at Four Judicial Institutions. The Circular Letter directs district courts to conclude cases within five months and mandates the high courts to resolve appeals within three months. District court judges can request extensions to these deadlines, which must be approved by the chief of the relevant district court. It is common for cases, especially those involving technical and expert evidence or foreign parties, to extend beyond the stipulated timeframe and often last a year or more. For cases involving foreign defendants or co- defendants, serving summons alone may take at least four months before the court may proceed in their absence. Some panels of judges opt to issue up to three summonses before continuing with hearings. At the appellate levels, the timeframe for the high court and the Supreme Court to review appeals and cassations, respectively, also varies based on the existing case backlog. Typically, it may take at least six months for the high court to ren- der a decision, with the Supreme Court poten- tially taking an additional 12 months. Simple claims for disputes of less than IDR500 million are heard in an expedited procedure that
must be concluded within 25 days of the date of the first hearing.
8. Settlement 8.1 Court Approval
An amicable settlement in a lawsuit can often be reached without the need for formal court approval. However, if the parties wish for the settlement to have the same enforceability as a court judgment, they may seek the court’s ratifi- cation. The court’s ratification will be document- ed in a court decision which may be publicly accessible, except for certain conditions. 8.2 Settlement of Lawsuits and Confidentiality The settlement of a lawsuit can remain confi- dential if the settlement is reached during the court-mandated mediation process. This pro- cess 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 evi - dence in any subsequent court proceedings concerning the same dispute if no settlement is achieved. Additionally, all records maintained by the mediator during the mediation process must be destroyed at its conclusion. Further- more, mediators are not permitted to testify as witnesses in any related court proceedings. 8.3 Enforcement of Settlement Agreements In Indonesia, the enforceability of a settlement agreement depends on whether it has been rati- fied by the court. When parties reach an agree- ment during court-mandated mediation, the panel of judges can ratify the settlement agree- ment, making it equivalent to a final and binding
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