Only the Central Jakarta District Court is authorized to issue an exequatur.
In today’s globalized economy, international business disputes are often resolved through arbitration. But what happens when the arbitration award is made in another country, and enforcement is needed in Indonesia? If you’re a business owner, investor, or foreign company dealing with cross-border transactions, understanding how to enforce an international arbitration award in Indonesia can make or break your legal strategy.
Indonesia is a signatory to the New York Convention 1958, and its domestic law supports the enforcement of international arbitration awards. However, the process isn’t always straightforward. This article walks you through the legal framework, procedural steps, and practical insights from our experience as a top-tier law firm in Jakarta.
An arbitration award is a legally binding decision made by an arbitration tribunal to resolve a dispute between two or more parties. Arbitration is typically preferred for international commercial disputes because it is private, efficient, and enforceable across borders.
A domestic arbitration award is issued in Indonesia under Indonesian arbitration rules, while an international arbitration award is issued outside Indonesia. Enforcement mechanisms differ significantly between the two.
Indonesia ratified the New York Convention on the Recognition and Enforcement of International Arbitral Awards in 1981 through Presidential Decree No. 34 of 1981. This means Indonesia is obligated to recognize and enforce arbitration awards made in other signatory countries.
The enforcement of international arbitration awards is further governed by Law No. 30 of 1999 on Arbitration and Alternative Dispute Resolution, particularly Articles 65 to 69. The law emphasizes procedural compliance, reciprocity, and non-violation of public policy.
Indonesia will enforce international awards only from countries that are also parties to the New York Convention and have a reciprocal relationship with Indonesia. Always verify the originating country’s Convention status.
The award must be final and binding, with no further legal recourse available in the country where it was issued. This must be proven with valid documentation.
To enforce an international arbitration award in Indonesia, an application for exequatur (recognition and enforcement) must be submitted to the Central Jakarta District Court. This is the only court authorized to handle such requests.
Key documents to submit include:
All translations must be conducted by a sworn translator.
The Court will not re-examine the merits of the case but will ensure that formal and legal requirements are met. If all is in order and no public policy issues arise, the court will issue an exequatur.
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Even if procedural requirements are fulfilled, the court can reject enforcement if the award is deemed to violate public policy. This concept, while broad, typically refers to values of morality, justice, and national interest.
A common issue in applications is improper or inaccurate translations, which can delay or derail your case. Sworn translations are not optional—they are mandatory.
There is no specific statute of limitations under Indonesian law for enforcing an international arbitration award. However, it is recommended to act swiftly to avoid complications such as loss of evidence or changes in party status.
Recent decisions from the Central Jakarta District Court indicate a trend of increasing willingness to enforce international awards, provided that procedural steps are strictly followed. Courts are becoming more commercially aware and arbitration-friendly, especially in finance, oil & gas, and construction sectors.
A multinational energy firm recently enforced a USD 50 million arbitration award in Indonesia within 6 months by partnering with a local law firm that understood both the legal and cultural landscape. Their success was largely due to complete documentation, accurate translation, and proactive court engagement.
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At Kusuma & Partners, we have assisted numerous clients in enforcing international arbitration awards in Indonesia. Our deep understanding of the Indonesian judiciary and arbitration law enables us to streamline the exequatur process, anticipate possible objections, and safeguard your interests.
Whether you’re dealing with a million-dollar dispute or a smaller commercial claim, we ensure clarity, compliance, and control.
To enforce an international arbitration award in Indonesia, understanding both international commitments and domestic procedural law is crucial. While the process is supported by international treaties and Indonesian law, enforcement requires strategic planning, legal expertise, and cultural awareness.
With the right legal partner, you can turn your arbitration award into an enforceable judgment, ensuring your rights and investments are protected.
Need to enforce an international arbitration award in Indonesia? Kusuma & Partners Law Firm offers expert legal assistance to ensure swift and secure enforcement. Contact us today to safeguard your interests in Indonesia.
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“DISCLAIMER: This content is intended for general informational purposes only and should not be treated as legal advice. For professional advice, please consult with us.”
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