Draft Bill on Kadin Proposes Authority for the Resolution of Commercial Disputes

The Legislative Body (“ Baleg ”) of Indonesia’s House of Representatives (“ DPR RI ”) has included a draft bill on amendment to Law No. 1 of 1987 (“ Law 1/1987 ”) on Indonesian Chamber of Commerce and Industry (“ Kadin ”) in the 2026 Priority National Legislation Program (Prolegnas). One of the proposed discussions concerns the authority over the resolution of commercial disputes.

“This law was enacted 38 years ago, so it indeed requires an update that is more precisely targeted to the broader public and the current geopolitical context,” said Kadin’s Chairman, Anindya Novyan Bakrie, to Hukumonline.

The mechanisms for resolving commercial disputes that could be utilized include Alternative Dispute Resolution (“ ADR ”) or out-of-court settlements such as arbitration or mediation. This regulation is expected to provide legal certainty to expand investment. The proposal represents Kadin’s input to the DPR RI.

“Disputes cannot be eliminated, but they must be resolved. Both domestic and foreign parties must feel that we are professional,” said Anindya.