House of Representatives to Review Proposal on Business Dispute Resolution in the Kadin Draft Bill

Commission VI of the House of Representatives of the Republic of Indonesia (“DPR RI”) will review the proposal on the establishment of a business dispute resolution body in the revision of Law No. 1 of 1987 on the Chamber of Commerce and Industry (“Kadin Draft Bill”). Sturman Panjaitan, a member of Commission VI of the DPR RI, stated that the authority to resolve business disputes under Kadin must not overlap with that of existing state institutions.

Sturman noted that dispute resolution is a sensitive matter, and therefore the discussion must be conducted with caution. “We must ensure that the revision of the Kadin Law does not result in provisions that conflict with other existing laws and create new problems in the future,” he told Hukumonline.

In the Kadin Draft Bill obtained by Hukumonline, Kadin’s dispute resolution authority is outlined in Articles 35 through 37. The draft states that Kadin has the authority to establish business dispute resolution institutions throughout Indonesia to carry out mediation and facilitate dispute resolution. This institution has the duty and authority to resolve business disputes through mediation and/or arbitration.

Sturman said that Commission VI will evaluate this dispute resolution proposal to prevent a dual mandate between institutions. Therefore, the House of Representatives will conduct a public hearing with experts and academics to gather input on the proposal.