Journal of Arbitration Studies (한국중재학회지:중재연구)

The Korean Association of Arbitration Studies (한국중재학회)
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The Provisions on the Enforcement of Foreign Arbitration Awards in Indonesia (under the New York Convention of 1958?)

  • Received : 2017.06.02
  • Accepted : 2017.08.30
  • Published : 2017.09.01
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Abstract

This article tried to describe the laws concerning the enforcement of foreign arbitration awards in Indonesia. This issue is relevant in the light of frequent curiosity of foreign commentators, business communities, practicing lawyers, concerning the arbitration in Indonesia, in particular its enforcement of foreign arbitration awards. The main laws on arbitration analyzed were, firstly, the Indonesian law on arbitration, namely Law No 30 of 1999 on Arbitration and Alternative Dispute Resolution and the Presidential Regulation No 34 of 1981 concerning the Ratification of the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958. The provisions of Law of 1999 analyzed were confined to its international provisions on arbitration, in particular the requirements for the enforcement of foreign arbitration awards and also the requirement that the awards do not violate Indonesian public policy. The problem with the Indonesian arbitration law (and the courts' practice) were that no provisions which provided guidance or meaning with regard to public policy. The absence or lack of guidance or definition on public policy had some times confused lawyers or the parties in dispute fearing that their arbitration awards would not be enforced due to the violation of public policy. Secondly was the different opinion of two Indonesian arbitration experts, Prof. Sudargo Gautama and Prof. Priyatna Abdurrasyid. Both scholars had rather different opinions with regard to the meaning of public policy in Indonesia. Thirdly was a recent case law, Astro Nusantara Bv et.al., vs PT Ayunda Primamitra Case (2010) decided by the Indonesian Supreme Court with regard to the enforcement of foreign arbitration awards. This article concluded that the Indonesian court, in particular the Central of Jakarta Court, so far have given its support that the execution of foreign awards was duly enforced.

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References

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