Arbitration in Indonesia: When Can an Award Be Annulled or Refused?

In Indonesia, parties may challenge an arbitral award in very limited and specific circumstances, as arbitral awards are generally considered final and binding. However, parties are given the opportunity to file a request to annul a domestic arbitration award if there are grounds to suspect that the award involves any of the following elements.

• A letter or document submitted during the examination, later acknowledged or declared false after the award has been rendered.
• The discovery of a decisive document, hidden by the opposing party, that only surfaces after the award has been issued.
• The obtaining of an award through deception or fraudulent conduct by one of the parties during the examination of the dispute.

The above is not applicable to a foreign arbitration award. However, foreign award enforcement may be refused based on Article 66 of the Arbitration Law if the award:

• was issued in a country that lacks a bilateral or multilateral recognition and enforcement treaty with Indonesia;
• falls outside the scope of commercial law under Indonesian law; or
• contravenes Indonesia’s public policy.

Excerpted from the Litigation 2025 Chambers Global Practice Guide, published by Chambers and Partners.

Find Litigation: Indonesia here.

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