Indonesian Legal Review: Arbitration and Mediation

By Natasha A. Sebayang and Dimas Ajie R. Kolopaking

Construction Arbitration

On September 22, 2015, the Indonesian Centre for Arbitration and Alternative Dispute Resolution for Construction, BADAPSKI, held its first seminar to announce its existence as a dispute resolution body in the field of construction.

BADAPSKI was established by the Minister of Public Works on August 19, 2014 pursuant to Law No. 18 Year 1999 regarding Construction Services (May 7, 1999) (Law 18/1999), which requires that the Ministry of Public Works encourage the use of arbitration, mediation and expert appraisals to settle disputes in the construction sector.

The arbitration procedures used by BADAPSKI are based on the BADAPSKI Arbitration Rules, which include the general arbitration rules under Law No. 30 Year 1999 regarding Arbitration and Alternative Dispute Resolution (August 12, 1999) (the Arbitration Law). The purpose of BADAPSKI is to become the choice of dispute resolution to settle Indonesian construction disputes, both domestically and internationally, to perform such services quickly and inexpensively to achieve legal certainty while maintaining good relations between the parties.

One goal of the Government of Indonesia is to ensure that construction disputes do not impede infrastructure development.

New Mediation Rule

A recent dispute resolution development is the issuance of a new mediation rule by the Indonesian Supreme Court, pursuant to Supreme Court Regulation No. 1 of 2016 (February 4, 2016) (SC Reg 1). SC Reg 1 contains a different time period for the mediation process than its predecessor. Previously the time period for the mediation process was 40 business days, which could be extended for 14 business days, whereas SC Reg 1 provides for a mediation process of 30 business days, which can be extended for another 30 business days.

This article is from SSEK's Indonesian Legal Review, which looks at recent legal and regulatory developments in almost 50 sectors, from Airports to Tourism. This publication is intended for informational purposes only and does not constitute legal advice. Any reliance on the material contained herein is at the user's own risk. You should contact a lawyer in your jurisdiction if you require legal advice. All SSEK publications are copyrighted and may not be reproduced without the express written consent of SSEK.