INDONESIA Law and Practice Contributed by: Nico Angelo Putra Mooduto, Mahareksha Singh Dillon, Talitha Amanda Ekadhani and Bagas Ananta, SSEK Law Firm
court judgment. This court-ratified settlement is enforceable through legal mechanisms available for court judgments, allowing the prevailing party to take enforcement actions, such as asset sei- zure or garnishment, if the other party does not comply. Settlement agreements reached outside of court, without formal ratification, are treated as private contracts. While they are binding on the parties involved, enforcement depends on the willingness of both parties to uphold the terms. If one party fails to comply, 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 specific circumstances. Typically, the main sce- narios in which a settlement agreement can be set aside, include fraud; misrepresentation; duress; or violations of Indonesian law or public policy. 9. Damages and Judgment 9.1 Awards Available to the Successful Litigant In Indonesia, a successful litigant can receive various forms of awards, depending on the nature of the case, the claims made, and the evi- dence provided. At the full trial stage, remedies focus on compensatory and declaratory relief, as Indonesian law typically emphasises restitu- tion over punitive measures. The main forms of awards and remedies available to a successful 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 immate- rial damages address losses related to future opportunities, emotional distress, or reputa- tional harm, although they are less frequently awarded. For cases involving overdue pay- ments 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 con- tractual disputes, property disputes, and cases where legal status or ownership must be determined; or (b) recognition of title or ownership: in property and land disputes, the court may declare the rightful owner, thereby resolv- ing conflicting ownership claims. Declara- tory relief can also apply to intellectual property, affirming the rights of the rightful holder. • Specific performance: in cases involving contractual obligations, the court may order the breaching party to fulfil their contractual duties. While specific performance is less common in Indonesian courts due to enforce- ment challenges, it may be awarded if the contractual obligation is clear and feasible to execute. This remedy is more likely in cases involving unique items or specific actions that cannot be adequately compensated through monetary damages. • Restitution and reinstatement: in cases involv- ing unjust enrichment or wrongful possession, the court may order restitution, requiring the defendant to return property or assets wrong- fully obtained. Reinstatement may also be ordered, especially in employment or contrac-
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