UNOFFICIAL TRANSLATION

Law No. 30 of 1999

Arbitration and Alternative Dispute Resolutions
Chapter I
General Provisions
Article 1

In this Law the following terms have the following meanings:

1. Arbitration means a method of settling civil disputes outside the general courts, based on an
arbitration agreement made in writing by the parties to the dispute;

2. The parties means the legal subjects, whether in civil or public law;

3. Arbitration agreement means an agreement in the form of an arbitration clause set out in a
written agreement made by the parties before the dispute occurs, or a separate arbitration
agreement made by the parties after the dispute occurs.

4. District Court means the District Court that has jurisdiction over the Respondent’s domicile.

5. Claimant means the party submitting the request for resolution of the dispute by arbitration.

6. Respondent means the party opposing the Claimant in the resolution of the dispute by
arbitration.

7. Arbitrator(s) means one or more persons designated by the parties in dispute, appointed by the
District Court or by an arbitration institution to render an award in a particular dispute
submitted for resolution by arbitration.

8. Arbitration institution means a body chosen by the parties in dispute to give an award with
regard to a particular dispute. This institution may also give a binding opinion on a particular
legal relationship where a dispute has not yet arisen.

9. International arbitration award means an award handed down by an arbitration institution or

individual arbitrator outside the jurisdiction of the Republic of Indonesia, or an award by an
arbitration institution or individual arbitrator which, under the provisions of Indonesian law,
is deemed to be an international arbitration award.

10. Alternative dispute resolution means a mechanism for the resolution of disputes or differences
of opinion through procedures agreed by the parties, i.e. resolutions outside the courts by
consultation, negotiation, mediation, conciliation, or expert assessment.
Article 2

This Law regulates the resolution of disputes or differences of opinion between the parties in a
particular legal relationship that have entered into an arbitration agreement which explicitly states that
all disputes or differences of opinion arising or which may arise from a legal relationship will be
resolved by arbitration or through alternative dispute resolution.
Article 3

The District Court has no jurisdiction to try disputes between parties bound by an arbitration
agreement.

5
Article 4

1. If the parties have agreed that disputes between them are to be resolved through arbitration
and have granted such authority, the arbitrators have the authority to determine in their award
the rights and obligations of the parties, if these matters are not stipulated in their agreement.

2. The agreement to resolve disputes through arbitration as specified in paragraph (1) must be
contained in a document signed by the parties.

3. If an agreement is made to resolve a dispute by an exchange of letters, the sending of telexes,

telegrams, faxes, e-mails, or any other form of communication must be accompanied by a
record of receipt by the parties.
Article 5

1. The only disputes which may be settled by arbitration are disputes in the commercial sector
concerning rights which, according to the law and regulations, have the force of law and are
fully controlled by the parties in dispute.

2. Disputes which may not be resolved by arbitration are disputes that cannot be settled
amicably under the regulations and the force of law.

Chapter II
Alternative Dispute Resolution
Article 6

1. Disputes or differences of opinion may be resolved by the parties by alternative dispute

resolution based on good faith by waiving the resolution by litigation in the District Court.

2. The resolution of disputes or differences of opinion through alternative dispute resolution, as

contemplated in paragraph (1), is carried out by a direct meeting of the parties within fourteen
(14) days, the outcome of which will be set out in a written agreement.

3. If the dispute or difference of opinion contemplated in paragraph (2) cannot be resolved, the
dispute or difference of opinion between the parties may, with the written agreement of the
parties, be resolved with the assistance of one or more expert advisors or a mediator.

4. If the parties fail to reach an agreement within 14 (fourteen) days with the assistance of one or
more expert advisors or a mediator, or the mediator does not succeed in bringing the two
parties together, the parties may contact an arbitration institution or an alternative dispute
resolution institution to appoint a mediator.

5. After the appointment of the mediator by the arbitration institution or the alternative dispute
resolution institution, the mediation process must begin within seven (7) days.

6. Attempts at resolving the dispute or difference of opinion through a mediator, as

contemplated in paragraph (5) must, maintaining strict confidentiality, reach an agreement in
written form, signed by all parties concerned, within 30 (thirty) days.

7. The written agreement resolving the dispute or difference of opinion will be final and binding
on the parties for execution in good faith, and must be registered at the District Court within
30 (thirty) days after it has been signed.

6
8. The agreement for resolution of the dispute or difference of opinion contemplated in
paragraph (7) must be completely implemented within 30 (thirty) days after its registration.

9. If attempts to reach an amicable settlement, as contemplated in paragraphs (1) to (6), are

unsuccessful, the parties, based on a written agreement, may submit the matter to resolution
by an arbitration institution or adhoc arbitration.

Chapter III
Terms of Arbitration, Appointment of Arbitrators, and Right of
Refusal
First Part
Terms of Arbitration
Article 7

The parties may agree that a dispute which occurs or which will occur between them will be resolved
by arbitration.
Article 8

1. If a dispute arises, the claimant must inform the respondent by registered letter, telegram,
telex, fax, e-mail, or by courier that the terms for arbitration between the claimant and
respondent apply.

2. The notification of the arbitration as contemplated in paragraph (1), must clearly state:

(a) the names and addresses of the parties;

(b) reference to the applicable arbitration clause or agreement;

(c) the agreement or problem in dispute;

(d) the basis for the claim and the amount claimed, if any;

(e) the method of resolution desired; and

(f) the agreement entered into by the parties concerning the number of arbitrators, or if
no such agreement has been entered into, the claimant may submit a proposal about
the odd number of arbitrators desired.
Article 9

1. Should the parties choose resolution of the dispute by arbitration after the dispute occurs, their
agreement to this must be given in a written agreement, signed by the parties.

2. If the parties are unable to sign a written agreement, as contemplated in paragraph (1), the
written agreement must be made in the form of a notarial deed.

3. The written agreement contemplated in paragraph (1) must contain:

(a) details of the matter in dispute;

(b) the full names and places of residence of the parties;

(c) the full names and places of residence of the arbitrator or the arbitration tribunal;
7
 (d) the place where the arbitrator or arbitration tribunal will make their decision;

(e) the full name of the secretary;

(f) the period for resolution of the dispute;

(g) a statement of acceptance by the arbitrator; and

(h) a statement of acceptance from the disputing parties that they will bear all costs
necessary for the resolution of the dispute through arbitration.

4. A written agreement that does not contain the matters specified in paragraph (3) will be void
by the operation of law.
Article 10

An arbitration agreement will not become void because of the circumstances mentioned below.

(a) the death of one of the parties;

(b) the bankruptcy of one of the parties;

(c) novation;

(d) the insolvency of one of the parties;

(e) inheritance;

(f) the conditions to terminate the main agreement become effective;

(g) the implementation of the agreement is assigned to a third party, with the consent of the
parties who made the arbitration agreement; or

(h) the main contract expires or is nullified.

Article 11

1. The existence of a written arbitration agreement eliminates the right of the parties to submit
the resolution of the dispute or difference of opinion contained in the agreement to the District
Court.

2. The District Court must refuse to and must not interfere in any dispute settlement which has
been determined by arbitration, except in particular cases determined in this Law.

Conditions of Appointment of Arbitrators

Article 12

1. The parties who may be appointed or designated as arbitrators must:

(a) be competent to perform legal actions;

(b) be at least 35 years of age;

8
 (c) not have a family relationship by blood or marriage to the second degree with one of
the disputing parties;

(d) not have any financial or other interest in the arbitration award; and

(e) have at least 15 years’ experience and active expertise in the field.

2. Judges, prosecutors, court clerks, and other officials of justice may not be appointed or
designated as arbitrators.
Article 13

1. If the parties cannot reach agreement on the choice of arbitrators or no terms have been made
concerning the appointment of arbitrators, the Chairman of the District Court may appoint the
arbitrator or arbitration tribunal.

2. In an adhoc arbitration, where there is any disagreement in the appointment of one or more
arbitrators, the parties may submit an application to the Chairman of the District Court to
appoint one or more arbitrators to resolve the parties’ dispute.
Article 14

1. If the parties have agreed that a dispute is to be examined and decided by a sole arbitrator, the
parties must reach an agreement concerning the appointment of the sole arbitrator.

2. The claimant may propose to the respondent by registered letter, telegram, telex, fax, e-mail
or courier service the name of a person to be appointed as sole arbitrator.

3. If, within 14 (fourteen) days after the respondent receives the claimant’s proposal
contemplated in paragraph (2), the parties do not succeed in agreeing on the sole arbitrator,
then the Chairman of the District Court, at the request of one of the parties, may appoint the
sole arbitrator.

4. The Chairman of the District Court will appoint a sole arbitrator from a list of names
submitted by the parties, or obtained from the arbitration organisation or institution
contemplated in Article 34, with due attention to the recommendations of or objections to the
person concerned submitted by the parties.
Article 15

1. The appointment of two arbitrators by the parties gives the two arbitrators the authority to
choose and appoint a third arbitrator.

2. The third arbitrator contemplated by paragraph (1) will be appointed as the chair of the
arbitration panel.

3. If within 30 (thirty) days after notification is received by the respondent, as contemplated in

Article 8, paragraph (1), one of the parties fails to appoint someone to be a member of the
arbitration panel, the arbitrator chosen by the other party will act as sole arbitrator and his/her
award will bind both parties.

4. If the two arbitrators appointed by the parties contemplated in paragraph (1) do not succeed in
appointing the third arbitrator within 14 (fourteen) days after the last arbitrator was appointed,
the Chairman of the District Court, at the request of one of the parties, may appoint the third
arbitrator.

9
5. No attempt may be made to nullify the appointment of an arbitrator by the Chairman of the
District Court as contemplated in paragraph (4).
Article 16

1. The arbitrator appointed or designated may accept or refuse the appointment or nomination.

2. The arbitrator must inform the parties in writing of the acceptance or rejection contemplated
in paragraph (1), within 14 (fourteen) days as from the date of the appointment or designation.
Article 17

1. With the appointment in writing by the parties of one or more arbitrators, and the acceptance in
writing of the appointment by the arbitrator(s), there is a civil contract existing between the
appointing parties and the arbitrator accepting the appointment.

2. The appointment contemplated in paragraph (1) will have the effect that the arbitrator or
arbitrators will render an award honestly, fairly, and in accordance with the prevailing
provisions, and the parties will accept the award as final and binding, as jointly agreed.
Article 18

1. A prospective arbitrator who is asked by one of the parties to sit on the arbitration panel must
inform the parties of anything which could influence his independence or give rise to bias in
the award to be rendered.

2. Anyone accepting an appointment as arbitrator, as contemplated in paragraph (1), must

inform the parties of his appointment.
Article 19

1. If an arbitrator states his/her acceptance of the appointment or designation, as contemplated in

Article 16, he/she may not withdraw his/her acceptance, except with the consent of the
parties.

2. If the arbitrator contemplated in paragraph (1), who has accepted the appointment or
designation, wishes to declare his/her withdrawal, he/she must submit a written request to the
parties.

3. If the parties consent to the request to withdraw contemplated in paragraph (2), the arbitrator
concerned may be released from his/her duties as arbitrator.

4. If the request for withdrawal does not receive the consent of the parties, the release of the
arbitrator from his/her duties is to be determined by the Chairman of the District Court.
Article 20

If an arbitrator or arbitration panel, for no valid reason, fails to render an award within the period
specified, the arbitrator(s) may be ordered to pay the parties compensation for the costs and losses
caused by the delay.
Article 21

The arbitrator or arbitration panel may not be held legally responsible for any action taken during the
proceedings to carry out the function of arbitrator or arbitration panel, unless it is proved that there
was bad faith in their action.

1
0
Right of Refusal
Article 22

1. A demand for refusal may be submitted against an arbitrator if there is sound reason and
sufficient authentic evidence to give rise to doubts that the arbitrator will not perform his/her
duties independently, or will be biased in rendering an award.

2. Demands to refuse an arbitrator may also be made if it is proved that there is any family,
financial, or employment relationship with one of the parties or its attorney.
Article 23

1. The right to refuse an arbitrator appointed by the Chairman of a District Court must be
submitted to the District Court concerned.

2. The right to refuse a sole arbitrator must be submitted to the arbitrator concerned.

3. The right to refuse a member of an arbitration panel must be submitted to the arbitration panel
concerned.
Article 24

1. An arbitrator who was not appointed by court decree may only be refused for a reason which
only became known to the party applying the right of refusal after the appointment of the
arbitrator concerned.

2. An arbitrator appointed by court decree may only be refused for a reason which became
known after receipt of the court decree.

3. The party objecting to the appointment of an arbitrator made by the other party must submit
its demand for refusal within 14 (fourteen) days of the appointment.

4. If the reason contemplated in Article 22 paragraphs (1) and (2) becomes known at a later date,
the demand for refusal must be submitted within 14 (fourteen) days of its becoming known.

5. The demand for refusal must be submitted in writing, either to the other party or to the
arbitrator concerned, stating the reason for the demand.

6. If the other party consents to the demand for refusal submitted by one of the parties, the
arbitrator concerned must resign and a substitute arbitrator must be appointed in accordance
with the procedure set out in this Law.
Article 25

1. If the other party does not consent to the demand for refusal submitted by one of the parties,
and the arbitrator concerned is unwilling to resign, the party concerned may submit a demand
for refusal to the Chairman of the District Court, whose judgment will bind the two parties,
and no objection against it may be submitted.

2. If the Chairman of the District Court decides that the demand contemplated in paragraph (1)
is well founded, a substitute arbitrator must be appointed in the manner applied to the
appointment of the arbitrator he/she is replacing.

3. If the Chairman of the District Court rejects the demand for refusal, the arbitrator must
continue to perform his/her duties.

11
Article 26

1. An arbitrator’s authority will not be nullified by the death of the arbitrator and the authority
must thereupon be continued by a substitute appointed in accordance with this Law.

2. An arbitrator may be released from his/her duties if he/she is proved to be biased or acting
inappropriately, which must be legally proved.

3. If, during the examination of the dispute, an arbitrator dies, becomes incapacitated, or resigns,
and as a result is unable to meet his/her obligations, a substitute arbitrator must be appointed in
the manner applied to the appointment of the arbitrator concerned.

4. If a sole arbitrator or the chairman of the arbitration panel is replaced, all examinations
previously held have to be repeated.

5. If a member of the arbitration tribunal is replaced, the examination of the dispute will only be
repeated in an orderly manner by the arbitrators.

Chapter IV
Procedure Applicable Before the Arbitration Tribunal
First Part
Arbitration Procedure
Article 27

All examinations of disputes by arbitrators or panels of arbitrators must be closed to the public.
Article 28

The Indonesian language must be used in all arbitration proceedings, although the parties may choose
to use another language, with the consent of the arbitrator or arbitration tribunal.
Article 29

1. The parties in dispute have the same right and opportunity to state their opinions.

2. The parties in dispute may be represented by an attorney with a specific power of attorney.
Article 30

Third parties outside the arbitration agreement may participate and join the proceedings for the
resolution of disputes by arbitration, if any element of related interest is found and their participation
is agreed to by the parties in dispute and by the arbitrator or arbitration panel examining the dispute.
Article 31

1. The parties are free to determine in an explicit written agreement the arbitration procedure to
be used in examining the dispute, provided it does not conflict with the provisions of this
Law.

2. If the parties do not decide themselves the terms of the arbitration proceedings to be used in
the examination, and the arbitrator or arbitration panel has been appointed in accordance with
Articles 12, 13, and 14, all disputes whose resolution has been handed over to an arbitrator or
arbitration panel must be examined and decided in accordance with the provisions in this
Law.

12
3. If the parties have chosen an arbitration procedure, as contemplated in paragraph (1) they
must agree on provisions for the timeframe and venue of the arbitration, and if the timeframe
and venue are not determined, the arbitrator or arbitration panel will determine them.
Article 32

1. At the request of one of the parties, the arbitrator or arbitration panel may make a provisional
award or other interlocutory decision on how to organize the examination of the dispute,
including awarding a security attachment, ordering the deposit of goods with third parties, or
the sale of perishable goods.

2. The period for implementing the provisional award or other interlocutory decision
contemplated in paragraph (1) will not be counted in the period contemplated in Article 48.
Article 33

The arbitrator or arbitration panel is authorised to extend its term of office if:

(a) an application is made by one of the parties in special circumstances;

(b) it is extended as a result of a provisional award or other interlocutory decisions being made;
or

(c) it is deemed necessary by the arbitrator or arbitration panel in the interests of the examination.
Article 34

1. A dispute that is resolved through arbitration may be conducted through national or

international arbitration institutions based on the agreement of the parties.

2. A dispute through arbitration institutions, as contemplated in paragraph (1), should be

conducted according to the rules and procedure of the institution chosen, unless otherwise
determined by the parties.
Article 35

The arbitrator or arbitration panel may order that any document or evidence be accompanied by a
translation in the language determined by the arbitrator or arbitration panel.
Article 36

1. The process of the dispute in arbitration must be conducted in writing.

2. Verbal examination is permissible based on the parties’ consent, or if it is deemed to be

necessary by the arbitrator or arbitration panel.
Article 37

1. The venue of arbitration is determined by the arbitrator or the arbitration panel, unless it is
decided by the parties themselves.

2. The arbitrator or arbitration panel may obtain information from witnesses or hold any
meetings deemed necessary at particular places outside the location where the arbitration is
taking place.

3. Witnesses and expert witnesses must be examined before the arbitrator or arbitration panel in
accordance with the provisions in civil procedural law.

13
4. The arbitrator or arbitration panel may conduct on the spot hearings on the goods in dispute or
other matters connected with the dispute being examined. If necessary, the parties will be
lawfully summoned, so that they may also be present at the examination.
Article 38

1. The claimant must submit a statement of its claim to the arbitrator or arbitration panel within
the period determined by the arbitrator or the arbitration panel.

2. The statement of claim must contain at least:

(a) the full names and residences/domiciles of the parties;

(b) a short description of the dispute, accompanied by evidence in the form of exhibits;
and

(c) clear contents of the claim.

Article 39

After receiving the statement of claim from the claimant, the arbitrator or the head of the arbitration
panel will forward a copy of the claim to the respondent, together with an order that the respondent
must reply and give its answer in writing within 14 (fourteen) days as from the date he/she/it receives
a copy of the claim.
Article 40

1. Immediately after receiving the respondent’s reply a copy of the reply must be delivered to
the claimant based on the order of the arbitrator or the chair of the arbitration panel.

2. At the same time, the arbitrator or the chair of the arbitration panel will order the parties or
their attorneys to appear at an arbitration hearing determined within 14 (fourteen) days as
from the issue of the order.
Article 41

If the respondent has not, after the elapse of the 14 (fourteen) day period contemplated in Article 39,
presented its reply, he/she/it will be summoned under the provisions contemplated in Article 40,
paragraph (2).
Article 42

1. In its reply or at the latest in the first hearing, the respondent may submit a counterclaim and
the claimant will be given an opportunity to respond to this counterclaim.

2. The counterclaim contemplated in paragraph (1) will be examined and decided by the
arbitrator or arbitration panel together with the main dispute.
Article 43

If, on the day determined as contemplated in Article 40, paragraph (2), the claimant, for no valid
reason, fails to appear after being duly summoned, the statement of claim will be deemed cancelled
and the duty of the arbitrator or arbitration panel will be deemed completed.
Article 44

1. If on the day determined, as contemplated in Article 40, paragraph (2), the respondent, for no
valid reason, fails to appear, although the respondent has been duly summoned, the arbitrator
or arbitration panel must immediately summons the respondent again.

14
2. If within 10 (ten) days after the respondent receives the second summons, the respondent, for
no valid reason, still fails to appear at the hearing, the proceedings will be continued without
the respondent, and the claimant’s claim will be entirely accepted, unless the claim is
groundless or is not based on law.
Article 45

1. If the parties appear on the determined day, the arbitrator or arbitration panel must first
attempt to bring about an amicable settlement between the parties in dispute.

2. If the attempt contemplated in paragraph (1) succeeds, the arbitrator or arbitration panel will
make a deed of amicable settlement, which will be final and binding on the parties, and will
order the parties to comply with the terms of the amicable settlement.
Article 46

1. Examination of the merits of the dispute will proceed if the attempt to settle the dispute
amicably, as contemplated in Article 45, paragraph (1), is not successful.

2. The parties are given a final opportunity to explain in writing their arguments and to submit
evidence deemed necessary to uphold their arguments in a period determined by the arbitrator
or arbitration panel.

3. The arbitrator or arbitration panel has the authority to ask the parties to submit supplementary
written explanations, documents or other evidence deemed necessary in a period determined
by the arbitrator or arbitration panel.
Article 47

1. Until the respondent submits a reply, the claimant may withdraw its request for resolution of
the dispute through arbitration.

2. If the respondent has already submitted a reply, an amendment or supplement to the statement
of claim may only be allowed with the consent of the respondent, and as long as the
amendment or supplement includes only actual matters and does not involve the legal grounds
which form the basis of the claim.
Article 48

1. Examination of the dispute must be completed within 180 (one hundred and eighty) days
from the appointment of the arbitrator or the formation of the arbitration panel.

2. The period contemplated in paragraph (1) may be extended with the consent of the parties and
if required in accordance with the provisions of Article 33.

Second Part
Witnesses and Expert Witnesses
Article 49

1. By the instruction of the arbitrator or arbitration panel or at the request of the parties, one or
more witnesses or expert witnesses may be called to be heard.

2. The costs of the summons and the witnesses’, or expert witnesses’ travel expenses will be
charged to the party that requested them.

3. Before they make a statement, the witnesses or expert witnesses must take an oath.

15
Article 50
1. The arbitrator or arbitration panel may request the assistance of one or more expert witnesses
to give written evidence on specific issues related to the merits of the dispute.

2. The parties must give all the information required by the expert.

3. The arbitrator or arbitration panel must forward copies of the expert witnesses’ statements to
the parties so that they may reply in writing.

4. If the statement of the relevant expert witness is unclear, interested parties may request that
the expert witness further explains his/her statement at an arbitration hearing attended by the
parties or their proxies.
Article 51

A record of the examination proceedings and the arbitration hearing will be prepared by a secretary.

Chapter V
The Arbitration Opinion and Award
Article 52

Parties to an agreement are entitled to request a binding opinion from an arbitration institution on a
particular legal issue in an agreement.
Article 53

No legal remedy is available to challenge the binding opinion contemplated in Article 52.
Article 54

1. An arbitration award must contain:

(a) the heading “DEMI KEADILAN BERDASARKAN KETUHANAN YANG MAHA ESA”
(In the Name of Justice, Based on Belief in God Almighty);

(b) full names and addresses of the parties;

(c) a short description of the dispute;

(d) the arguments of the parties;

(e) full names and addresses of the arbitrators;

(f) the considerations and conclusions of the arbitrator or arbitration tribunal regarding
the whole dispute;

(g) the opinion of each arbitrator, if any differences of opinion arise within the arbitration
panel;

(h) the award;

(i) the place and date of the award; and

(j) the signature of the arbitrator or arbitration panel.

16
2. The validity of the award will not be affected even if one of the arbitrators is unable to sign
the arbitration award due to sickness or death.

3. The reason for not signing, as contemplated in paragraph (2), must be recorded in the award.

4. The award must state a period within which the award must be carried out.
Article 55

After the examination of the dispute has been completed, it will be closed and a hearing date will be
fixed for the arbitration award to be rendered.
Article 56

1. The arbitrator or arbitration panel will base his/her/its decision on the provisions of the law or
on justice and fairness.

2. The parties are entitled to determine the applicable law to resolve any disputes which may
arise or which have arisen among the parties.
Article 57

The award must be rendered within 30 (thirty) days after the examination is closed.
Article 58

Within 14 (fourteen) days after receiving the award, the parties may submit a request to the arbitrator
or the arbitration panel to correct any administrative errors and/or to add to or reduce the award.

Chapter VI
Enforcement Of Arbitration Awards
First Part
National Arbitration
Article 59

1. Within 30 (thirty) days from the date the award is rendered, the original text or an authentic
copy of the arbitration award must be delivered to the Clerk of the District Court and
registered there by the arbitrator or his/her/its proxy.

2. The delivery and registration contemplated in paragraph (1) will be carried out by the marking
and signing of the last part or the margin of the award by the Clerk of the District Court and the
arbitrator or his/her/its proxy that delivers it. This record constitutes a deed of
registration.

3. The arbitrator or his/her/its proxy must deliver the award and the original text of his/her
appointment as arbitrator, or an authentic copy of it, to the Clerk of the District Court.

4. Non-fulfilment of the provisions contemplated in paragraph (1) above will render the
arbitration award unenforceable.

5. All costs connected with the deed of registration are to be charged to the parties.
Article 60

The arbitration award is final and has a permanent and binding legal effect on the parties.

17
If the parties do not voluntarily implement the arbitration award, it may be enforced by an order from
the Chairman of the District Court at the request of one of the parties to the dispute.
Article 62

1. The order contemplated in Article 61 must be issued within 30 (thirty) days after the
application for execution has been registered with the Clerk of the District Court.

2. The Chairman of the District Court contemplated in paragraph (1) must first examine whether
the arbitration award fulfils the provisions of Articles 4 and 5 and ensure that it does not
conflict with public morality and order before issuing the order for its execution.

3. If the arbitration award does not fulfil the conditions contemplated in paragraph (2), the
Chairman of the District Court will reject the request for execution, and no legal remedy will
be available against the judgment of the Chairman of the District Court.

4. The Chairman of the District Court will not examine the reasons or considerations for the
arbitration award.
Article 63

The order of the Chairman of the District Court must be written on the original text and the authentic
copy of the arbitration award.
Article 64

The arbitration award to which the order of the Chairman of the District Court is affixed must be
enforced in accordance with the provisions on the execution of final and binding judgements in civil
cases.

Second Part
International Arbitration
Article 65

The Central Jakarta District Court is the court that has the authority to handle matters with respect to
the recognition and enforcement of International Arbitration Awards.
Article 66

International Arbitration Awards will only be recognised and may be enforced in the jurisdiction of
the Republic of Indonesia if they fulfil the following criteria:

(a) the International Arbitration Award is rendered by an arbitrator or arbitration panel in a country
which is bound to the Republic of Indonesia by a bilateral or multilateral treaty on the
recognition and enforcement of International Arbitration Awards;

(b) the International Arbitration Awards contemplated in item (a) are limited to awards which are
included within the scope of commercial law under Indonesian law;

(c) the International Arbitration Awards contemplated in item (a), which may only be enforced in
Indonesia, are limited to those which do not conflict with public order;

(d) an International Arbitration Award may be enforced in Indonesia after obtaining a writ of
execution from the Chairman of the Central Jakarta District Court; and

18
(e) the International Arbitration Awards contemplated in item (a), which involve the State of the
Republic of Indonesia as one of the parties to the dispute, may only be enforced after obtaining
an exequatur from the Supreme Court of the Republic of Indonesia, which will then delegate it
to the Central Jakarta District Court.
Article 67

1. An application to enforce an International Arbitration Award may be submitted after the

award has been delivered to the Clerk of the Central Jakarta District Court and registered
there by the arbitrator or his/her/its proxy.

2. The submission of the application for enforcement contemplated in paragraph (1) must be
forwarded together with:

(a) the original text or an authentic copy of the International Arbitration Award in
accordance with the provisions on authentication of foreign documents and an official
Indonesian translation of the text;

(b) the original text or an authentic copy of the agreement that is the basis for the
International Arbitration Award, in accordance with the provisions on authentication
of foreign documents and an official Indonesian translation of the text;

(c) a statement from the diplomatic representative of the Republic of Indonesia in the
country where the International Arbitration Award was rendered, stating that the
claimant’s country is bound to the Republic of Indonesia by bilateral or multilateral
treaty on the recognition and execution of International Arbitration Awards.
Article 68

1. No appeal or cassation to the Supreme Court, may be made against a decision of the
Chairman of the District Court contemplated in Article 66, item (d), which recognises and
enforces the International Arbitration Award.

2. A cassation to the Supreme Court may be made against a decision of the Chairman of the
District Court contemplated in Article 66, item (d), for refusing to recognise and enforce an
International Arbitration Award.

3. The Supreme Court will review and decide on any appeal submitted to it, as contemplated in
paragraph (2), within a period of 90 (ninety) days after the application for cassation has been
received by the Supreme Court.

4. No appeal can be submitted against the decision of the Supreme Court contemplated in
Article 66, item (e).
Article 69

1. After the Chairman of the Central Jakarta District Court has issued the writ of execution
contemplated in Article 64, further enforcement will be delegated to the Chairman of the
District Court which has jurisdiction to enforce it.

2. An attachment may be imposed on the assets and goods of the petitionee.

3. The procedure for the attachment and enforcement of the award must follow the procedure set
out in the Civil Procedural Law.

19
Chapter VII
Nullification Of Arbitration Awards
Article 70

An application to nullify an arbitration award may be made if the award is alleged to contain the
following elements:

(a) letters or documents submitted in the hearings which are admitted to be forged or are declared
to be forgeries after the award has been rendered;

(b) documents are found after the award has been rendered which are decisive in nature and were
deliberately concealed by the opposing party; or

(c) an award is made based on fraud committed by one of the parties to the dispute.
Article 71

An application for nullification of an arbitration award must be submitted in writing within 30 (thirty)
days as from the day the arbitration award was delivered to and registered with the Clerk of the District
Court.
Article 72

1. An application to nullify the arbitration award must be submitted to the Chairman of the
District Court.

2. If the application contemplated in paragraph (1) is granted the Chairman of the District Court
must further determine the consequence of the nullification of the whole or only part of the
arbitration award.

3. A decision on the application for nullification must be rendered by the Chairman of the
District Court within 30 (thirty) days from the date when the application contemplated in
paragraph (1) is received.

4. An appeal against the judgement of the District Court may be lodged with the Supreme Court,
which must decide, being the court of final instance.

5. The Supreme Court must consider and decide on the appeal, as contemplated in paragraph (4),
within 30 (thirty) days after the Supreme Court receives the appeal.

Chapter VIII
Completion Of The Arbitrators’ Task
Article 73

The arbitrators’ task will be deemed completed when:

(a) the award regarding the dispute has been rendered;

(b) the period as determined in the arbitration agreement or after any extension thereto by the
parties has expired; or

(c) the parties agree to withdraw the arbitrators’ appointment.

20
Article 74

1. The death of one of the parties will not cause the task of the arbitrator(s) to end.

2. The period for the arbitrators’ task contemplated in Article 48 may be postponed for no more
than 60 (sixty) days as from the death of one of the parties.
Article 75

1. If the arbitrator dies or a waiver or the dismissal of one or more arbitrators is granted, the
parties must appoint (a) replacement arbitrator(s).

2. If the parties have not reached an agreement on the appointment of (a) replacement
arbitrator(s) within 30 (thirty) days, as contemplated in paragraph (1), the Chairman of the
District Court may, at the request of the interested parties, appoint one or more replacement
arbitrators.

3. The replacement arbitrator(s) will continue the settlement of the dispute, based on the most
recent conclusions drawn.

Chapter IX
Arbitration Fees
Article 76

1. The arbitrator(s) determine the arbitration fee.

2. The fee contemplated in paragraph (1) includes:

(a) the arbitrators’ honorarium;

(b) travel expenses and other expenditure incurred by the arbitrator(s);

(c) the costs of witnesses and expert witnesses needed in the examination of the dispute;
and

(d) administrative costs.

Article 77

1. Arbitration fees are charged to the losing party.

2. If a claim is only granted partially, the arbitration fees will be charged to the parties equally.

Chapter X
Transitional Provisions
Article 78

For those disputes which have already been submitted to an arbitrator or an arbitration institution but
which are not examined before this law becomes effective, the examination process will be conducted
according to this law.
Article 79

Disputes which have already been reviewed but which have not been decided when this law comes
into effect, must be reviewed and decided based on the old law.

21
Article 80

Disputes which have already been finally decided when this law comes into effect must be enforced
in accordance with this law.

Chapter XI
Closing Provisions
Article 81

Once this Law comes into effect, Articles 615 to 651 of the Civil Procedure Rules (Reglemen
Acara Perdata (Reglement op de Rechtsvordering), Staatsblad 1847:52), Article 377 of the
Renewed Indonesian Rules (Reglemen Indonesia Yang Diperbaharui (Het Herziene Indoneisisch
Reglement, Staatsblad 1941:44) and Article 705 of the Procedural Rules for Areas Outside Java
and Madura (Reglemen Acara Untuk Daerah Luar Jawa dan Madura (Rechtsreglement
Buitengewesten, Staatsblad 1927:227) will be deemed null and void.
Article 82

This Law will come into effect on the date of its promulgation.