In an increasingly interconnected global landscape, the intricacies of cross-border disputes have underscored the need for effective resolution mechanisms. Among these mechanisms, international mediation has emerged as one of the avenues for achieving consensus in cross-border cases. However, many businesses still hesitate in choosing international mediation due to the differing practices on enforcement of mediated settlement agreements.
To respond to this pressing need, the Singapore Convention on Mediation (“Singapore Convention”) was conceived in 2019 as a solution to address the enforcement gap concerning mediated settlements across international borders. Its objectives centre around streamlining and standardising the recognition and enforcement of mediated agreements. By doing so, the Singapore Convention offers a systematic, cost-effective, and expeditious alternative to litigation.
With respect to Indonesia, it has not ratified the Singapore Convention. Nonetheless, Indonesia has two legislative frameworks governing mediation: Law No. 30 of 1999 on Arbitration and Alternative Dispute Resolution (“Law 30“), which pertains to mediations stemming from alternative dispute resolution, and Supreme Court Regulation No. 1 of 2016 (“Regulation“), governing mediations emerging from court proceedings.
This writing will discuss how foreign businesses are increasingly turning to filing lawsuits for settlement deeds under the Regulation as a way to enforce their settlement agreements in Indonesia. It underscores the evolving landscape of cross-border dispute resolution in a nation grappling with the complexities of international mediation amidst the absence of direct adherence to the Singapore Convention.
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