Despite ongoing demands for the revision of Law No. 30 of 1999 on Arbitration and Alternative Dispute Resolution, which has remained effective for 24 years, no amendments have been made so far. This has sparked concerns among legal practitioners and academics, who worry that this outdated law might discourage users, especially international parties, from choosing to arbitrate in Indonesia. Two recent surveys underscore the pivotal role of domestic arbitration laws in attracting users and positioning Indonesia as a preferred seat for arbitration (namely the 2021 International Arbitration Survey: Adapting Arbitration to a Changing World by Queen Mary University of London and the Singapore International Dispute Resolution Academy, International Dispute Resolution Survey: 2022 Final Report). A ‘modern’ arbitration law is also deemed essential for recognition as a ‘safe’ seat under the CIArb London Centenary Principles 2015.
Against this backdrop, the Supreme Court recently announced a new era for both domestic and international arbitration by enacting Supreme Court Regulation No. 3/2023 on the Procedure for the Appointment of Arbitrators by the Court, Challenge Rights, Examination of Enforcement Applications, and Arbitral Award Annulment.
This article will highlight key features of the Regulation, detailing the changes that will reshape Indonesia as the next emerging dispute resolution hub across the continent.
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