INDONESIA Law and Practice Contributed by: Nico Angelo Putra Mooduto, Mahareksha Singh Dillon, Talitha Amanda Ekadhani and Bagas Ananta, SSEK Law Firm
13.2 Subject Matters Not Referred to Arbitration Certain subject matters cannot be resolved through arbitration due to their public interest nature or legal restrictions. The Arbitration Law specifies that only disputes involving commer- cial interests can be referred to arbitration. The following subject matters are generally not arbi- trable. • Criminal matters. • Family law matters. • Bankruptcy and insolvency. • Administrative and public law disputes. • Employment and labour disputes (excluding disputes between labour unions). 13.3 Circumstances to Challenge an Arbitral Award In Indonesia, parties may challenge an arbitral award in very limited and specific circumstanc- es, as arbitral awards are generally considered final and binding. However, parties are given the opportunity to file a request to annul a domestic arbitration award if there are grounds to suspect that the award involves any of the following ele- ments. • A letter or document submitted during the examination, later acknowledged or declared false after the award has been rendered. • The discovery of a decisive document, hidden by the opposing party, that only surfaces after the award has been issued. • The obtaining of an award through deception or fraudulent conduct by one of the parties during the examination of the dispute. The above is not applicable to a foreign arbitra- tion award. However, foreign award enforcement may be refused based on Article 66 of the Arbi- tration Law if the award:
• was issued in a country that lacks a bilateral or multilateral recognition and enforcement treaty with Indonesia; • falls outside the scope of commercial law under Indonesian law; or • contravenes Indonesia’s public policy. 13.4 Procedure for Enforcing Domestic and Foreign Arbitration Under Article 59 of the Arbitration Law, domestic arbitration awards must be registered with the district court in the respondent’s domicile within 30 days of issuance. Once the award has been signed by the chief of the district court with an enforcement order, it is enforced following the procedure for executing final and binding court judgments. Enforcement of foreign awards is handled by the Central Jakarta District Court, and decisions regarding enforcement are not open to appeal or cassation. However, under Article 66 of the Arbitration Law, enforcement of foreign awards may be denied if the conditions outlined in 13.3 Circumstances to Challenge an Arbitral Award are met. 14. Outlook 14.1 Proposals for Dispute Resolution Reform There are no proposals for dispute resolution reform. 14.2 Growth Areas The Supreme Court has recently taken a proac- tive approach to longstanding challenges within Indonesia’s arbitration framework. With the issu- ance of PERMA 3/2023, the Supreme Court has introduced amendments aimed at clarifying pro-
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