The recognition and enforcement of international arbitral award in Indonesia is regulated on Law Number 30 of 1999 on Arbitration and Alternative Dispute Resolution (“Arbitration Law”) and Supreme Court Regulation Number 1 of 1990 (“SCR 1/1990”). International arbitral award means a decision imposed by (i) an Arbitration Institution or Personal Arbitrator beyond the jurisdiction of the Republic of Indonesia, or (ii) an Arbitration Institution or Personal Arbitrator which, by Indonesian law, is considered as an international arbitral award.
Imperative Requirements for International Arbitral Award can be Recognized and Enforced in Indonesia
Arbitration Law regulates the imperative requirements for international arbitral award to be recognized and enforced in Indonesia, as follows:
- imposed by the arbitrator or arbitral tribunal in a country where the Indonesian State is bound by the treaty, bilaterally or multilaterally, on the recognition and enforcement of the international arbitral award;
- according to the Indonesian law which is included within the scope of trade law;
- not contrary to the public order;
- has obtained the exequatur from (i) the Chief of the District Court of Central Jakarta; or (ii) the Supreme Court, which is delegated to the District Court of Central Jakarta, if one of the parties to the dispute is the Republic of Indonesia.
Under the Arbitration Law, the scope of trade law includes the following activities:
- commerce;
- banking;
- finance;
- capital investment;
- industry;
- intellectual property.
However, the Arbitration Law does not explain the extent of public order. If it refers to SCR 1/1990, it is stated that vilation to the public order is a violation to the fundamental principles of the entire legal system and society in Indonesia.
Application of Exequatur
To obtain an exequatur, the applicant is required to apply for the exequatur to the authorized agency as described above. Essentially, the request for an exequatur shall be an application filed by one of the parties to the dispute so that the competent authority under the Arbitration Law issues a decision ordering the implementation (exequatur) of an international arbitral award.
- The application of exequatur may be filled after the international arbitral award has been submitted and registered (deponir) by the “arbitrator or his/their attorney” to the Clerk of the District Court of Central Jakarta. The application of exequatur must also enclose original sheet or authentic copy of international arbitral award and its official translation text in Bahasa Indonesia;
- original sheet or authentic copy of the basic agreement which underlies the international arbitral award in accordance with the provisions concerning the authentication of foreign documents, and its official translation texts in Bahasa Indonesia; and
- a statement from the Republic of Indonesia’s diplomatic representative in the country of the international arbitration institution, which informs that there is a bilateral or multilateral agreement with the Republic of Indonesia regarding the recognition and execution of international arbitration award.
Decision of the Application of Exequatur
For the decision of the Chief of the District Court of Central Jakarta that admits to recognize and enforce the international arbitral award, that decision is unable to be filed an appeal or cassation. Neverthelss, if the Chief of the District Court of Central Jakarta rejects the application of exequatur, the applicant can apply the cassation to the Supreme Court. Whereas, the procedure of filing the cassation follows the applicable civil procedure law.
For the decision of the Supreme Court (if the application of exequatur is addressed to the Supreme Court as described above), then the decision cannot be objected.
Adrian Fernando
