Law No. 30 of 1999 on Arbitration and Alternative Dispute Resolution (“Arbitration Law“) is currently listed in the Indonesian National Legislation Program (Prolegnas) 2025 – 2029 for amendment. The 2024 Academic Manuscript on the proposed amendment to the Arbitration Law (“Academic Manuscript“) sets out several proposed amendments to the Arbitration Law. These proposals aim to enhance legal certainty, strengthen investor confidence, and ensure Indonesia’s arbitration framework remains responsive to the evolving needs of global commerce.
In this article, we first outline six key amendments proposed under the Academic Manuscript, namely:
- aligning the definition of “international arbitral awards” with the definition under the UNCITRAL Model Law on International Commercial Arbitration (Model Law);
- delineating the scope and boundaries of the definition of public policy;
- incorporating online dispute resolution mechanisms;
- incorporating mechanisms tailored for micro, small, and medium enterprises;
- clarifying that foreign nationals may serve as arbitrators; and
- narrowing the corrections that may be made to an arbitral award.
We then discuss further areas of reform that we as practitioners have identified as necessary to position Indonesia as a more arbitration-friendly jurisdiction. These are:
- the disclosure of assets for enforcement purposes;
- the enforceability of interim measures;
- support for emergency arbitration;
- court assistance in arbitral proceedings;
- staying of parallel litigation proceedings; and
- joining a third party to the arbitration.
For more information, click here to read the full article.
Visit Arbitration Asia for insights from our thought leaders across Asia concerning arbitration and other alternative dispute resolution mechanisms, ranging from legal and case law developments to market updates and many more.
Disclaimer
Rajah & Tann Asia is a network of member firms with local legal practices in Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. Our Asian network also includes our regional office in China as well as regional desks focused on Brunei, Japan and South Asia. Member firms are independently constituted and regulated in accordance with relevant local requirements.
The contents of this publication are owned by Rajah & Tann Asia together with each of its member firms and are subject to all relevant protection (including but not limited to copyright protection) under the laws of each of the countries where the member firm operates and, through international treaties, other countries. No part of this publication may be reproduced, licensed, sold, published, transmitted, modified, adapted, publicly displayed, broadcast (including storage in any medium by electronic means whether or not transiently for any purpose save as permitted herein) without the prior written permission of Rajah & Tann Asia or its respective member firms.
Please note also that whilst the information in this publication is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as legal advice or a substitute for specific professional advice for any particular course of action as such information may not suit your specific business and operational requirements. You should seek legal advice for your specific situation. In addition, the information in this publication does not create any relationship, whether legally binding or otherwise. Rajah & Tann Asia and its member firms do not accept, and fully disclaim, responsibility for any loss or damage which may result from accessing or relying on the information in this publication.
