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Court Interventions In International Arbitration - Indonesia Experience Indonesia or an award which is issued by an arbitrator (s) which under Indonesian law is deemed to be an international arbitration award. Article 5 of the Law provides that the District Court of Central Jakarta is competent to deal with the recognition and enforcement of international arbitration awards. Paragraph d of article provides that international arbitration awards can be enforced in Indonesia after obtaining an exequatur (approval for enforcement) from the Chairperson of the District Court of Central Jakarta. Only international arbitration awards that are issued in countries which are parties to the New York Convention and which deal with commercial disputes and which are not in contradiction with public policy of Indonesia, will be recognized and enforced. Article paragraph e provides that international awards which involve the state of the Republic of Indonesia as a party can only be enforced after obtaining an exequatur from the Supreme Court of Indonesia the execution of which will then be implemented by the District Court of Central Jakarta. Article 7 paragraph 1 provides that the application for the enforcement of an international arbitration award is to take place by submitting and registering the award at the District Court of Central Jakarta. Article 8 paragraph 1 provides that the Decision of the Chairperson of the District Court of Central Jakarta to recognize and enforce the award cannot be appealed or brought to cassation. On the other hand the Decision of the Chairperson of the District Court of Central Jakarta which refuses the recognition and enforcement of an international arbitration award can be brought to cassation at the Supreme Court. The Supreme Court will render its decision within 90 days. The decision of the Supreme Court in this respect cannot be challenged (article 8 paragraphs 4). The actual enforcement/execution of the award will be delegated by the District Court of Central Jakarta to the competent court of the respective jurisdiction in the country. Chapter VI Section 2 of the Arbitration Law which deals with the recognition and enforcement of international arbitration awards does not include the whole article V of the Convention, except the provision pertaining to public policy argument. Although Indonesia has ratified the Convention (under certain reservation), provisions which are not embodied in the implementing national law or regulation, normally the Indonesian court would not apply such provisions which are not part of the national procedural law. A question has ever been raised, besides the refusal based on public policy argument, whether an international arbitration award can be subject to the INDONESIA ARBITRATION - Quarterly Newsletter No. 4/2008
provision of article 70 of the Arbitration Law which stipulates the reasons for a request to have an arbitration award be annulled by the court. Article 70 provides that an application to annul an arbitration award may be made if any of the following conditions are allegedly to exist: a. letters or documents submitted to the hearing are acknowledged to be false or forged or are declared to be forged after the award has been made; b. after the award has been rendered documents are founded which are decisive in nature and deliberately concealed by the opposing party, or c. the award was rendered as a result of fraud committed by one of the parties in the dispute. With respect to the question whether the above provision is applicable to international arbitration, we have to refer to the Supreme Court on the Pertamina vs. Karaha Bodas Case (Supreme Court Decision No. 01/BANDING/ WAS/T.INT/2002 dated March 8, 2004). The Supreme Court has eliminated the Decision No.8 /PDT/G/2002/PNJKT PST dated August 27, 2002 of the District Court of Central Jakarta which had annulled the international arbitration award on the Pertamina vs. Karaha Bodas case which was rendered in Geneva (Switzerland). In annulling the award, the District Court of Central Jakarta held that the award is in contradiction with Indonesian law which is the applicable law of the contract in dispute and that the award was made against the public policy of Indonesia. As mentioned earlier, Indonesia does not include the whole article V of the New York Convention in Chapter VI Section 2 of the Arbitration Law. However, the Supreme Court in its judgment did refer to Article V (1)(e) of the Convention which provides or that can be interpreted that an international arbitration award can only be set aside or suspended by a competent authority in which or under the law of which that award is made. The Supreme Court put aside the view of the District Court of Central Jakarta which applied or mixed up the matter or issue on governing law on the substance of disputing contract and the matter with regard to the law under which the arbitration proceeding is conducted and the award is made. In other words the provision on the annulment of award which is contained in article 70 of the Arbitration Law is only applicable to arbitration conducted or the award of which is made in Indonesia. INDONESIA ARBITRATION - Quarterly Newsletter No. 4/2008 Court Interventions In International Arbitration - Indonesia Experience
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Page 3 and 4: From The Editor On June 10, 1958 th
Page 5 and 6: and adopt the convention proves if
Page 7 and 8: Particularly enforcement of an awar
Page 9 and 10: An example of avoidance of enforcem
Page 11 and 12: Article III Apart from some reorder
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Page 15: to be conducted under the provision
Page 19 and 20: Enforcement of Foreign Arbitration
Page 21 and 22: forgery or fraud. However such annu
Page 23 and 24: Arbitration Agreement As an English
Page 25 and 26: 5) The conduct of the arbitration p
Page 27 and 28: agreement. Furthermore, the article
Page 29 and 30: policy in the place of arbitration.
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