Arbitration Provisions in the Draft Bill on Private International Law

The Government and the People’s Representative Council of the Republic of Indonesia (DPR) are currently preparing the Draft Bill on Private International Law (“PIL Draft Bill”). Provisions concerning arbitration have been proposed to be included in the regulation.

“We agree that several provisions relating to the enforcement of international arbitral awards may possibly be accommodated. However, this will not necessarily be automatic, as arbitration has its own mechanism,” said Supratman Andi Agtas, the Minister of Law, to Hukumonline.

International arbitration refers to a method of resolving civil disputes outside the general courts, involving parties from different countries. The Government is considering accommodating the proposal in the problem inventory list (Daftar Inventarisasi Masalah/DIM) prepared by the Government.

This measure is intended to prevent a legal vacuum in the event of commercial contract disputes between Indonesian companies and foreign companies. “The input is good. We will discuss it later,” Supratman said.