Arbitration Law Amendment to Adopt UNCITRAL Model Law

The Indonesian National Arbitration Board ("BANI") has proposed a draft amendment to Law No. 30 of 1999 concerning Arbitration and Alternative Dispute Resolution ("Law 30/1999") to the Government. This amendment, for a law over two decades old, will adopt standards and policies implemented by the United Nations Commission on International Trade Law Model Law on International Commercial Arbitration ("UNCITRAL Model Law").

"One of the overlooked authorities in the implementation of Law 30/1999 is the failure to align our arbitration regulations with the UNCITRAL Model Law, which is widely recognized internationally. This makes Indonesia's arbitration policy unfriendly and inadequate," said BANI Board Member, Prof. Huala Adolf, to Hukumonline.

According to him, the regulatory change aims to provide legal certainty in alternative dispute resolution, especially in trade and investment. Moreover, BANI has become part of the Asia-Pacific Economic Cooperation (APEC) Online Dispute Resolution (ODR) Collaborative Framework alongside China, Hong Kong, Japan, Singapore, and the United States.

"The government should support the amendment of Law 30/1999 so that arbitration and dispute resolution policies adhere to international standards. This would boost confidence and trust among investors," he concluded.