#SIPTalk: Penyelesaian Sengketa Bisnis di Indonesia Melalui Arbitrase | Hanna Kathia Septianti, S.H.

Summary

This video discusses the benefits of arbitration as an alternative dispute resolution (ADR) method in Indonesia, comparing it with traditional court litigation. It highlights the key advantages of arbitration, including confidentiality, flexibility in procedure, and the ability to choose specialized arbitrators. Unlike court cases, arbitration decisions are final and binding, offering faster resolutions. The script also covers Indonesia's legal reforms in 2023 aimed at enhancing arbitration practices, making the country a more attractive hub for international business dispute resolution. Overall, arbitration offers businesses a more efficient and private way to resolve conflicts.

Takeaways

• 😀 Arbitration is a key alternative dispute resolution (ADR) method used for resolving business disputes outside of court.
• 😀 Under Indonesian law, arbitration is governed by Law No. 30 of 1999, which lays out the legal framework for arbitration and other alternative dispute resolution methods.
• 😀 Unlike court trials, arbitration requires a written agreement between the parties to resolve disputes via arbitration, either before or after a dispute arises.
• 😀 One major difference between arbitration and court litigation is the flexibility in procedures; arbitration allows parties to choose the rules they wish to follow.
• 😀 Arbitration is private and confidential, unlike court proceedings, which are typically public. This offers more privacy for business-related disputes.
• 😀 In arbitration, parties have the freedom to choose their arbitrators based on their expertise in the relevant field (e.g., construction, finance). This contrasts with the court system, where judges are assigned.
• 😀 Arbitration awards are final and binding, with no option for appeal. In contrast, court decisions can be appealed or reviewed by higher courts.
• 😀 There are two types of arbitration: institutional (e.g., BANI, Basarnas) and ad hoc. Institutional arbitration follows set procedures, while ad hoc arbitration is more flexible and tailored to the specific dispute.
• 😀 The **2023 Supreme Court Regulation (Perma No. 3/2023)** streamlines the process for the execution of arbitration awards, providing greater legal certainty for business parties.
• 😀 Arbitration is often chosen by business parties due to its faster resolution timeline, as well as the certainty that no further legal recourse can delay the final award.
• 😀 Indonesia is working to become more competitive in international arbitration, facing challenges from countries like Singapore, which has established itself as a leading global arbitration hub.

Q & A

What is arbitration as discussed in the video?

Arbitration is a form of alternative dispute resolution (ADR) where parties agree to resolve their disputes outside of court. It involves the appointment of an arbitrator or panel of arbitrators who make a binding decision, with procedures agreed upon by the parties.

How is arbitration different from litigation in court?

Unlike court litigation, arbitration requires the parties to agree to resolve their dispute through arbitration, typically via a written arbitration agreement. Additionally, arbitration is usually private (confidential), whereas court proceedings are public. Arbitration also offers a more flexible process, as parties can choose the arbitrator and procedural rules.

What is the significance of an arbitration agreement?

An arbitration agreement is a written contract where the parties agree to resolve future or existing disputes through arbitration. It is necessary for initiating the arbitration process. Without this agreement, arbitration cannot take place.

Can the parties freely choose the arbitrator in arbitration?

Yes, in arbitration, the parties have the freedom to choose the arbitrator or arbiters, often based on their expertise in the specific subject matter of the dispute. This contrasts with court litigation, where the judge is appointed by the court and the parties have no influence over this decision.

What are the main types of arbitration mentioned in the video?

The video mentions two main types of arbitration: institutional arbitration and ad hoc arbitration. In institutional arbitration, the parties agree to submit their dispute to an arbitration institution, which provides a set of rules and arbitrators. In ad hoc arbitration, the parties select their own procedural rules and arbitrators for a specific dispute.

What is the process for challenging an arbitration award?

In most cases, arbitration awards are final and binding with limited grounds for challenge. The only options for challenging an arbitration award in Indonesia, as per the Arbitration Law (Law No. 30/1999), are to seek annulment based on fraud, concealment of evidence, or forged documents.

How does arbitration ensure a quicker resolution compared to court proceedings?

Arbitration tends to be faster than court proceedings because it has fewer formalities and is not burdened by lengthy appeals processes. Additionally, the parties often agree to more expedited timelines, and there is no possibility of appeal, which speeds up the resolution.

What are the advantages of confidentiality in arbitration for businesses?

Confidentiality in arbitration provides businesses with a more secure environment for dispute resolution, as it prevents sensitive information from being made public. This is particularly important for businesses that wish to avoid the publicity of their internal conflicts or sensitive commercial data.

What does the 2023 regulation (Perma 3/2023) in Indonesia change regarding arbitration?

The 2023 regulation (Perma 3/2023) introduces a more streamlined process for the execution of arbitration awards in Indonesia. Specifically, it allows for the enforcement of arbitration awards through a court process called 'exequatur' in a set timeframe (14 days), enhancing legal certainty and efficiency for businesses.

Why is Singapore considered an arbitration hub, and how does this relate to Indonesia's goals?

Singapore is considered an arbitration hub due to its established and efficient arbitration system, which attracts international businesses. Indonesia aims to improve its arbitration framework to offer similar legal certainty and efficiency, positioning itself as a competitive option for dispute resolution in Asia.