BKPM Urges Immediate Revision of the Arbitration Law

The Ministry of Investment and Downstreaming/Investment Coordinating Board (“ BKPM ”) is advocating for the revision of Law No. 30 of 1999 on Arbitration and Alternative Dispute Settlements (“ Law 30/1999 ”) to be included in the National Legislation Program (Prolegnas). This revision is considered important, particularly because dispute resolution mechanisms between foreign investors and the state are often conducted outside the courts.

“This is certainly important because the absence of a revised Law 30/1999 will also affect investor confidence,” said Andre Abraham, Head of the Legal Bureau at BKPM, in an interview with Hukumonline.

The revision of this law is considered urgent due to numerous gaps, ambiguities, and contradictions in the regulations that affect the effectiveness of arbitration decisions in Indonesia. “Therefore, it is expected that Law 30/1999 will be updated with progressive measures to provide certainty for business operations and foreign investors,” he explained.