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LAW OF INDONESIAN REPUBLIC

NUMBER 30 YEAR 1999
ISSUE OF
ARBITRATION AND THE ALTERNATIVE OF LAWSUIT SETTLEMENT

THE PRESIDENT OF INDONESIAN REPUBLIC,

Consider: a. Base on the law regulation obtain here, the civil lawsuit
settlement can both submit to general judicature and also
possible to submit through arbitration and the alternative of
lawsuit settlement;
b. That the law regulation obtain at the present for lawsuit
settlement through arbitration is not appropriate with the
trade development and law in general;
c. based on the consideration above at point a and b, need to
form the law of arbitration and the alternative of lawsuit
settlement;

In the view of: 1. Article 5 verse (1) and article 20 verse (1) the 1945
Constitution;
2. The Law Number 14 Year 1970 regarding The Main stipulation
of Judicial Authority (The State Sheet of Indonesian Republic
Year 1970 Number 74, The State Additional Sheet Number
2951);

With the approval of

INDONESIAN REPUBLIC LEGISLATIVE ASSEMBLY
RESOLVED THAT

Establish: THE LAW OF ARBITRATION AND THE ALTERNATIVE OF

LAWSUIT SETTLEMENT.

CHAPTER I
GENERAL STIPULATION

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 Article 1
The definitions of the term within the Law are:
1. Arbitration is the way of a civil lawsuit settlement in outside of general
judicature that based on arbitration agreement which is made written by the
legal dispute party.
2. The Parties are the law subject, both according to civil law and public law.
3. Arbitration Agreement is an agreement about arbitration clause that is
included in a written agreement which is made by the legal dispute party
before the dispute occur, or an arbitration agreement that is separated and
made by the legal dispute party after the dispute occur.
4. The State Court is Court of First Instance which is territory law includes the
domicile of the accused.
5. Litigant is the party that appeals the lawsuit settlement through arbitration.
6. Accused is the rival party in lawsuit settlement through arbitration.
7. Arbiter is one person or more that are chosen by the legal dispute party or
chosen by The State Court or arbitration institution, in order to give a verdict
about the certain lawsuit which is the settlement are depend on arbitration.
8. Arbitration Institution is an organization that is chosen by the legal dispute
party in order to give a verdict about a certain lawsuit; the institution also can
present an opinion that tied up about a certain law connection before the suit.
9. International Arbitration Verdict is a verdict which is decided by an
arbitration institution or personal arbiter outside region of Indonesian
Republic law, or a verdict of an arbitration institution or personal arbiter
according to Indonesian Republic law stipulation which is consider as an
international arbitration verdict.
10. The Alternative of Lawsuit Settlement Alternative is a lawsuit settlement
institution or different opinion through the procedure that have been agreed
from the parties, which is a settlement outside the court with the approach of
consultation, negotiation, mediation, consiliatation, or expert appraisal.

Article 2
This law regulates lawsuit settlement or different opinion between each party in a
certain law connection that already have an arbitration agreement which in a clear
manner clarified that all lawsuits or different opinion which appear from those law
connection will be solve with arbitration or through alternative lawsuit settlement.

Article3
The State Court is not in charge to bring a justice for lawsuit of the parties that have
been fixed in arbitration agreement.

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 Article 4
(1) Whenever the parties have been agreed about their lawsuit, it will be solve
through arbitration and the parties have been given authority, thus arbiter has
authority to decide the verdict about right and obligation of the parties if this
issue is not arrange in their agreement.
(2) The agreement to solve the lawsuit through arbitration as mention in verse (1)
which contain in a document that been signed by the parties.
(3) The lawsuit settlement through arbitration occurs via letter correspond, thus the
shipping of telex, telegram, faximile, e-mail or other communication forms,
must attached on receipt of letter by the parties.

Article 5
(1) The suit that can be solved through arbitration is only commerce lawsuit and
the suit parties have a right according to law and law stipulation.
(2) The lawsuit that can not be solved through arbitration is a lawsuit according to
law stipulation does not have reconciliation.

CHAPTERII
THE ALTERNATIVE LAWSUIT SETTLEMENT

Article 6
(1) The lawsuit or different civil opinion can be solved by the parties through the
alternative lawsuit settlement based on good intention with put aside litigation
settlement on The State Court.
(2) The lawsuit or different opinion through alternative lawsuit settlement as
mention on verse (1) solve in direct meeting of the parties within 14 (fourteen)
days and the result is formed on a written agreement.
(3) Whenever the lawsuit or different opinion as mention on verse (2) can not be
solved, thus based on written agreement of the parties, lawsuit or different
opinion is solved by one or more expert consultant or a mediator.
(4) When those parties maximal within 14 (fourteen) days with one or more expert
consultant or a mediator assistance can not reach agreement, or the mediator
can not confront both parties, thus the parties may contact an arbitration
institution or the alternative lawsuit settlement institution in order to point the
mediator.
(5) After pointing the mediator by arbitration institution or the alternative lawsuit
settlement institution, a mediation effort must begin maximal within 7 (seven)
days.

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(6) The effort of lawsuit settlement or different opinion through mediator as
mention on verse (5) is extremely confidential, the written agreement that have
been signed by all parties must been reached maximal within 30 (thirty days).
(7) The written agreement of lawsuit settlement or different opinion is final and
binding all the parties to implement the good intention and must register at The
State Court maximal within 30 (thirty) days after the signing.
(8) The agreement of lawsuit settlement or different opinion as mention on 7
(seven) must be finish maximal within 30 (thirty) days after the registration.
(9) Whenever the reconciliation effort as mention on verse (1) to verse (6) can not be
reached, thus the parties, according to the written agreement, can apply its
reconciliation effort through arbitration institution or ad-hoc arbitration.

CHAPTER III
ARBITRATION REQUIREMENT, ARBITER ASSIGNMENT, AND RELUCTANT
RIGHT

First Part
Arbitration Requirement

Article 7
The parties may agree the lawsuit occurred or will be occurred between them to be
solve through arbitration.

Article 8
(1) Whenever the lawsuit emerge, the litigant must inform via registered letter,
telex, telegram, faximile, e-mail or expedition book to litigant rival that
arbitration requirement is valid.
(2) The notification letter to hold an arbitration as mention on verse (1) clearly
contain:
a. Name and address of the parties;
b. The valid clause appointment or the valid arbitration agreement;
c. Agreement or problem that become a lawsuit;
d. Claim basis and the amount of the claim, if available;
e. The desire way of settlement; and
f. The agreement that arranged by the parties regarding the number of
arbiter or whenever that agreement have never been reached, the litigant

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 may propose a proposal about the wishes number of arbiter at the uneven
number.
Article 9
(1) Whenever the parties decide the lawsuit settlement through arbitration after the
lawsuit occurred, the agreement regarding that issue must be made on a written
agreement where all the parties sign it.
(2) Whenever the parties are not able to sign the written agreement as mention on
verse (1), that written agreement must be made on notary certificate form.
(3) The written agreement as mention on verse (1) must contain:
a. The lawsuit problem;
b. The full name and address of the parties;
c. The full name and address of arbiter or arbitration chamber;
d. The place of arbiter or arbitration chamber that will take a decision;
e. The full name of secretary;
f. The length time of lawsuit settlement;
g. The willingness declaration from arbiter; and
h. The willingness declaration from the lawsuit party in order to bear all
costs that needed for the lawsuit settlement through arbitration.
(4) The written agreement that is not containing an issue as mention on verse (3) is
canceled by law.
Article 10
An arbitration agreement is not canceled in the condition below:
a. The death of one of the party;
b. The bankrupt of one of the party;
c. Novacy;
d. Insolvency of one of the party;
e. Inheriting;
f. The requirement of main binding removal;
g. Whenever the agreement implementation have been transfer to the third party
with the party approval that done that arbitration agreement; or
h. When the main agreement is end or cancel.

Article11
(1) The existence of an arbitration agreement nullifies the right of the parties to
propose the lawsuit settlement or different opinion to The State Court.

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(2) The State Court must refuse and will not involve in a lawsuit settlement that
have been decided through arbitration, except certain issue that have been
decided on The Law.

The Second Part of Arbiter Assignment Requirement

Article 12
(1) The requirement of the arbiter that will be pointed or assigned:
a. Capable to do law action;
b. Age below 35 years old;
c. Does not have family relationship with the same blood or the second level
with one of the lawsuit party;
d. Does not have financial importance or other importance upon arbitration;
and
e. Have experience and master in the field actively minimal 15 years.
(2) The judge, attorney, registrar and other judicature officials can not be pointed or
assigned as an arbiter.
Article13
(1) When the parties can not reach the agreement regarding to arbiter election or
there is no stipulation that have been made regarding to arbiter assignment, The
Head of State Court point arbiter or arbitration chamber.
(2) In ad-hoc arbitration for every unreach agreement in pointing one or several
arbiter, the parties can propose to The Head State Court to point an arbiter or
more in order to solve the parties lawsuit.

Article 14
(1) When the parties have agreement reached that the emerged lawsuit will be
checked and overed by one and only arbiter, the parties must achieve
agreement reached about single arbiter assignment.
(2) The litigant with registered letter, telegram, telex, faximile, e-mail or expedition
book must suggest to the accused the name of the person that can be assign as a
single arbiter.
(3) Whenever within 14 (fourteen) days after the accused accept the litigant’s
suggestion as mention on verse (2) the parties are not able to point the single
arbiter, based on one of party petition, The Head State Court can assign the
single arbiter.
(4) The Head State Court will assign a single arbiter base on the list name that have
been given by the parties, or collected from an organization or arbitration

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 institution as mention on article 34, with observing the recommendation or an
objection that proposed by the parties toward relevant person.

Article15
(1) The assignment of two person arbiter by the parties offers the authority to those
arbiters to choose and to assign the third arbiter.
(2) The third arbiter as mention on verse (1) assign as the head of arbitration
chamber.
(3) If within 30 (thirty) days after the acception announcement by the accused as
mention on Article 8 verse (1), and one of the party apparently does not point
someone that will be the member of arbitration chamber, the arbiter that have
been pointed by other parties will be act as a single arbiter and the decision will
be bind both parties.
(4) If both arbiters that have been chosen by each party as mention on verse (1) is
not success to point the third arbiter within 14 (fourteen) days after the last
arbiter pointed, according to proposal one of party, The Head State Court can
assign the third party.
(5) Toward arbiter assignment that been done by The State Court as mention on
verse (4), can not propose the canceled effort.

Article 16
(1) The pointed or assigned Arbiter can accept or refuse those appointment or
assignment.
(2) Acceptance or refusal as mention on verse (1), must inform on written to the
parties within 14 (fourteen) days and counted since the appointment or
assignment.

Article17
(1) With pointing one arbiter or more arbiter by the parties on written and the
acceptance of one arbiter or more on written, thus between party that chosen
and arbiter who accept it, occurs a civil agreement.
(2) The appointment as mention on verse (1), caused that an arbiter or arbiters will
be give an honest, fair decision and appropriate with the valid stipulation and
the parties will accept the decision finally and binding as have been deal before.

Article 18
(1) A future arbiter that been asked by one of party to seat on arbitration chamber,
must notify to the party about possible issue that will be effect the freedom or
emerging of party decision that will given to.

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(2) Someone who accept the appointment as an arbiter as mention on verse (1)
must notify to the parties about his appointment.

Article 19
(1) When the arbiter have declare to accept the appointment or the assignment as
mention on Article 16, thus the relevant person can not withdraw, except based
on both parties.
(2) When arbiter as mention on verse (1) have accept the appointment or
assignment, declare to withdraw, thus the relevant person must propose the
proposal on written to the parties.
(3) When the parties can agree the withdraw proposal as mention on verse (2), thus
the relevant person, may free from the duty as an arbiter.
(4) When the withdraw proposal can not get approval from the parties, the duty
liberation decided by The Head State Court.

Article 20
Whenever arbiter or arbitration chamber without any reason are not giving the
decision in certain length time, arbiter can be punished to substitute the cost and
detriment that caused because of the delay to the parties.

Article 21
Arbiter or arbitration chamber can not imposed anykind of law irresponsibility or any
action during court session go on in order to carry out it function as an arbiter or
arbitration chamber , except it can be proved by a poor intention from that action.

The Third Part

Reluctant Right

Article 22
(1) Toward arbiter can propose a reluctant claim when there is a sufficient motive
and sufficient authentic evidence that arbiter will do the duty unfreely and will
take sides in making decision.
(2) A reluctant claim toward an arbiter can be done when it proves that there is a
family relationship, financial or job with one of the party and its authority.

Article 23

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(1) Reluctant right toward an arbiter that assigned by The Head of State Court,
proposed to relevant State Court.
(2) Reluctant right toward single arbiter is proposed to the relevant arbiter.
(3) Reluctant right toward member of arbitration chamber is proposed to the
relevant arbitration chamber.

Article 24
(1) Arbiter that assign not with the court determination, only can disavow based on
a motive which is just known by the party that will its reluctant right after the
relevant arbiter assignment.
(2) Arbiter that assign with the court determination, only can disavow based on a
known motive after the the acceptance of court determination occurs.
(3) The party that has objections toward an arbiter assignment that done by other
party, has to propose reluctant claim within 14 (fourteen) days after the
assignment day.
(4) Whenever the motive as mention on Article 22 verse (1) and (2) is known
afterwards, reluctant claim must propose within 14 (fourteen) days after its
known.
(5) Reluctant claim has to propose in written, both to other party and relevant
arbiter party with mention the claim motive.
(6) When the reluctant claim proposed by one of party and approved by other
party, the relevant arbiter must resign and the arbiter who replaces it will be
point according to Law procedure.

Article 25
(1) When the reluctant claim that proposed by one of the party is not approved by
the party and the relevant arbiter is not dispose to resign, the party that has an
interest can propose a claim to The Head of State Court and the verdict will
bind both parties and can not propose the opposition.
(2) When the Head of State Court resolve that a claim as mention on verse (1) has a
foundation, an arbiter who replaces must assign the valid procedure in order to
assign an arbiter who is being replaced.
(3) When Head of State Court refuse the reluctant claim, arbiter must continue his
duty.

Article 26
(1) Arbiter authority can not cancel when the arbiter is death and that authority
will continued by the one who replaced it then will be assigned agree with the
Law.

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(2) Arbiter can relieve from duty when it proves take sides or show disgraceful
attitude that must proven on law lane.
(3) When during the lawsuit investigation, arbiter is death, uncapable, or resign,
thus can not do the obligation, a substitute arbiter will be assigned agree with a
valid procedure for the relevant arbiter assignment.
(4) When a single arbiter or arbitration chamber chairman is being replaced, all
investigation that has been done must be redo.
(5) When the member of chamber is replaced, lawsuit investigation just redo
orderly between arbiters.

CHAPTER IV
THE OBTAINED AGENDA TOWARD ARBITRATION CHAMBER

First Part
Arbitration Agenda

Article 27
All of lawsuit investigation by arbiter or arbitration chamber is done in close off
procedure.

Article 28
The language that is used in all arbitration process is Bahasa Indonesia, except on an
agreement of the arbiter or arbitration chamber from the parties can choose other
language that will be used.

Article29
(1) The lawsuit parties have the same right and same opportunity to propose their
own opinion.
(2) The lawsuit parties can be representatived by their authority with the special
authorization letter.

Article30
The third party outside the arbitration agreement can involve and join the lawsuit
settlement process through arbitration, whenever there is interrelated relevant
importance element and his involvement is approved by arbiter or arbitration
chamber that check the relevant lawsuit.

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 Article31
(1) The parties on the firm and written agreement, free to determine the arbitration
agenda that will used in lawsuit investigation as long as not in contradiction
with this Law stipulation.
(2) When the parties are not determine theirselves about arbitration agenda that
will used in investigation, and arbiter or arbitration chamber are already formed
agree with Article 12, Article 13, and Article 14, all lawsuit that the settlement
give in to arbiter or arbitration chamber will be checked and determined
according to this Law.
(3) When the parties have chosen arbitration agenda as mention on verse (1), there
must have an agreement about the length time stipulation and place of
arbitration and whenever the length time and place are not determine, arbiter or
arbitration chamber will determine it.

Article32
(1) Based on the proposal from one of the party, arbiter or arbitration chamber can
make a provincial decision or interruption decision in order to organize the
orderliness of lawsuit investigation include determining the collateral
confiscation, commanding the goods depositing to the third party, ot selling the
goods that easily damaged.
(2) The length time of provincial decision implementation or other interruption
decisions as mention on verse (1) is not count in the length time as mention on
Article 48.

Article 33
Arbiter or arbitration chamber have authority to extend the duty length time when:
a. Proposed a proposal regarding special certain issue;
b. As a result of determining the provincial decision or other interruption decision
; or
c. If it necessary believed by arbiter or arbitration chamber for investigation
importance.
Article 34
(1) The lawsuit settlement through arbitration can do by using national arbitration
institution or international based on both parties agreement.
(2) The lawsuit settlement through arbitration as mention on verse (1) do
according to stipulation and agenda from chosen institution,except the parties
determine the other way.

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 Article 35
Arbiter or arbitration chamber can command with the purpose of every document or
evidence with the translation into the language that have decided by arbiter or
arbitration chamber.

Article36
(1) Lawsuit investigation in arbitration must be done in written.
(2) Oral investigation can be done when the parties agree or necessary believed by
arbiter or arbitration chamber.

Article 37
(1) Arbitration location determined by arbiter or arbitration chamber, except the
parties determine it theirselves.
(2) Arbiter or arbitration chamber can hear witness explanation or arrange the
meeting if it necessary in certain location outside the first arbitration location.
(3) Witness investigation and the key witness in front of arbiter or arbitration
chamber, is organized according to stipulation of civil law agenda.
(4) Arbiter or arbitration chamber can arrange local investigation for the good that
is in lawsuit process or other thing that related to lawsuit which is investigated ,
and if it needed, the parties will be called officially in order to present in the
investigation.

Article38
(1) In the length time that have been determined by arbiter or arbitration chamber,
the litigant has to inform the claim letter to arbiter or arbitration chamber.
(2) The claim letter must contain at least:
a. Full name and address or position of the parties;
b. Brief explanation about the lawsuit and attached the evidences
attachment; and the content of clear claim.

Article39
After receiving claim letter from litigant, arbiter or chairman of arbitration chamber
convey one copy of the claim to the accused with attaching a command that the
accused must reply and give the answer in written within 14 (fourteen) days since
receiving the claim copy.

Article40

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(1) After receiving the answer from the accused because of arbiter command or
arbitration chamber, the answer copy deliver to the litigant immediately.
(2) At the same time, arbiter or arbitration chamber chairman command the parties
or the their attorney to front in the arbitration court that have been determined
within 14 (fourteen) days since the day of issuing the command.

Article41
When the accused after 14 (fourteen) days as mention on Article 39 is not deliver the
answer, the accused will be called with the stipulation as mention on Article 40 verse
(2).

Article42
(1) In the answer or at the latest on the first court, the accused can propose a
response claim and toward that response claim the litigant is given opportunity
to reply it.
(2) A response claim as mention on verse (1), checked and decided by arbiter or
arbitration chamber together with the main lawsuit.

Pasal 43
Whenever the day that have been determines as mention on aArticle 40 verse (2) the
litigant without any official motive is not coming, while have been called formally,
the claim letter will be declared fall and arbiter duty or arbitration chamber duty is
finish.

Article44
(1) Whenever on the day that have been determined as mention on Article 40 verse
(2), the accused without any official motive is not coming, while have been
called formally, arbiter or arbitration chamber will recall one more time.
(2) Maximal within 10 (ten) days after the second recall the accused is not coming
yet to the court, investigation will be continued without the accused presence
and all litigants’ claim will be fulfilled, except the claim does not have a
foundation or not based on law.

Article 45
(1) When the parties caome to the day that have been determine, arbiter or
arbitration chamber prior make an reconciliation effort between the lawsuit
parties.

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(2) In making an reconciliation effort s mention on verse (1) is achieved, thus
arbiter or arbitration chamber formulate a final reconciliation certificate and
bind the parties and command the parties to fulfill the reconciliation stipulation.

Article46
(1) Investigation of main lawsuit continue if the reconcialition effort as mention on
Article 45 verse (1) is not achieved.
(2) The parties are given the last opportunity to explain in written for their own
conviction and propose the evidence if necessary in order to affirm the
conviction in the length time that is determined by arbiter or arbitration
chamber.
(3) Arbiter or arbitration chamber have a right to ask the parties to propose
additional explanation in written, document or other evidences if needed in the
the length time that is determined by arbiter or arbitration chamber.

Article47
(1) Before there is an answer from the accused, litigant can draw the proposal letter
in order to solve the lawsuit through arbitration.
(2) When there is already an answer from the accused, the alteration or additional
claim letter only can allow with the accused approval and as long as the
alteration and the additional concern only the fact cases and not concern law
foundations that become the proposal foundation.

Article48
(1) Lawsuit investigation must finish within 180 (a hundred eighty) days since the
arbiter or arbitration chamber formed.
(2) With the parties approval and if needed agree with Article 33, the length time as
mention on verse (1) can extend.

The Second part

Witness and The Key Witness

Pasal 49
(1) Based on arbiter or arbitration command or on the parties request can call a
witness or more or a key witness or more in order to hear the information.
(2) The calling cost and witness journey or key witness is charge to the party who
request it.
(3) Before giving information, the witnesses or the key witnesses must take an oath.

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 Article 50
(1) Arbiter or arbitration chamber can ask for help from a witness or more key
witnesses in order to give written information regarding a special issue related
to main lawsuit.
(2) The parties must give all information that is needed by the key witness.
(3) Arbiter or arbitration chamber forward the copy of key witness information to
the parties in order to reply it in written by the the lawsuit parties.
(4) Whenever there is a blur explanation, based on the parties request importance,
the relevant key witness can hear in front of the arbitration court with the
parties or the authority attorney presence.

Article 51
Toward the investigation activity and arbitration court is made the investigation
agenda by the secretary.

BAB V
OPINION AND ARBITRATION
Article 52

In the parties agreement has a right to ask a binding opinion from arbitration
institution for certain law relationship from an agreement.

Article53
Toward a binding opinion as mention on Article 52 can not do the opposition through
any kind of law effort.

Article 54
(1) Arbitration verdict muat contain:
a. Uppermost verdict sound “FOR THE SAKE OF JUSTICE BASED ON THE
ONE GOD”;
b. Full name and address of the parties;
c. The brief lawsuit explanation;
d. The parties convictions;
e. Full name and address of the arbiter;
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 f. The arbiter judgement and conclusion or arbitration chamber regarding
entirely lawsuit;
g. Opinion every arbiter when there is different opinion in arbitration
chamber;
h. Verdict injuction;
i. Location and the date of verdict; and
j. Arbiter sign or arbitration chamber;
(2) Without the sign in arbitration verdict by one of arbiter with the illness motive
or death will not effect the power of verdict validity.
(3) The motive of no sign as mention on verse (2) must attached in the verdict.
(4) In a verdict is must determined a length time of the verdict.

Article 55
Whenever lawsuit investigation is done, investigation has to close immediately and
determine the court day in order to express the arbitration verdict.

Article56
(1) Arbiter or arbitration chamber making decision based on law stipulation, or
based on the justice and fairness.
(2) The parties have a right to determine the possible lawsuit settlement or have
been emerge between the parties.

Article 57
A verdict express within 30 (thirty) days after the investigation closing.

Article58
Within 14 (fourteen) days after the verdict acception, the parties can propose the
proposal to arbiter or arbitration chamber to do the correction toward administrative
error and or adding or lessen something from claim verdict.

CHAPTER VI
ARBITRATION VERDICT IMPLEMENTATION
The First Part
National Arbitration

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 Article59
(1) Within 30 days since the date of verdict, original sheet or authentic copy of
arbitration verdict is given and registered by arbiter or the authority attorney to
The State Court Registrar.
(2) The surrender and registry as mention on verse (1), do with registration and the
signing at the last part or at the border by The State Court Registrar and arbiter
or the authority that do the transfer, and that documentation is registration
certificate.
(3) Arbiter or the authority must transfer the verdict and original assignment sheet
as an arbiter or copy authentic to The State Court Registrar.
(4) Not complying the stipulation as mention on verse (1), have consequences that
arbitration verdict can not implemented.
(5) All costs that related to the registration certificate process will charge to the
parties.

Article 60
Arbitration verdict is final and have fixed law power and binding the parties.

Article 61
When the parties do not implement the arbitration verdict voluntary, verdict
implement based on command of Chairman of State Court from one of lawsuit
request.

Article 62
(1) The command as mention on Article 61 is given within 30 (thirty) days after
execution proposal is listed to The State Court Registrar.
(2) The Chairman of State Court as mention on verse (1) before give the
implementation command, prior check whether arbitration verdict comply the
stipulation Article 4 and Article 5, also not in contradiction with morality and
general orderliness.
(3) When arbitration verdict is not comply the stipulation as mention on verse (2),
The Chairman of State Court refuse the proposal of execution implementation
and toward The Chairman of State Court verdict is not opened any kind of law
effort.
(4) The Chairman of State Court is not checking the motive or consideration from
arbitration verdict.

Article 63

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The Chairman of State Court command is written on original sheet and authentic
copy of the issuing arbitration verdict.

Article 64
Arbitration verdict that have been applied command of The Chairman of State Court,
implement agree with implementation stipulation in civil case that the verdict have
fixed law power.

The Second Part

Internasional Arbitration

Article 65
The one who has authority in handle the avowal problem and International
Arbitration Verdict implementation is The State Court of Central Jakarta.

Article66

International Arbitration Verdict just admitted and can implement in the law district
of Indonesian Republic, if comply the requirements below:
a. Internasional Arbitration Verdict is brought down by arbiter or arbitration
chamber in one country that binding in agreement with Indonesia, both bilateral
and multilateral, regarding confession and International Arbitration Verdict
implementation;
b. International Arbitration Verdict as mention on point a is limited on the
stipulation according to Indonesian Law Stipulation include law of commerce
scope;
c. International Arbitration Verdict as mention on point a is limited on the
stipulation that not in contradiction with general orderliness;
d. International Arbitration Verdict can implemented in Indonesia after obtain
execuator from The Chairman of State Court of Central Jakarta;
e. International Arbitration Verdict as mention on point a that related to
Indonesian Republic as one of lawsuit party, can just implemented after obtain
execuator from The Supreme Court of Indonesian Republic then delegated to
The State Court of Central Jakarta.
Article67
(1) The implememtation proposal of International Arbitration Verdict is done after
that verdict delivered and registred by arbiter or the authority to The State
Court Registrar of Central Jakarta.
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(2) The delivery of implementation proposal sheaf as mention on verse (1) must
attached:
a. Original sheet or authentic copy of International Arbitration Verdict, agree
with the stipulation regarding the foreign authentification document, and
the official translation manuscript in Indonesian Language;
b. Original sheet or authentic copy of agreement that is became foundation
of International Arbitration Verdict agree with the stipulation regarding
the foreign authentification document, and the official translation
manuscript in Indonesian Language; and
c. Explanation from The diplomatic presentative of Indonesian Republic in a
country where International Arbitration Verdict located and stipulated,
and declare that country of litigant is binding to the agreement, both
bilateral and multilateral with Indonesian Republic regarding confession
and International Arbitration Verdict implementation.

Article 68
(1) Concerning verdict of The State Court of Central Jakarta as mention on Article
66 point b which confess and implement International Arbitration Verdict, can
not propose an appeal or the jurisdiction of the highest court beyond.
(2) The State Court of Central Jakarta as mention on Article 66 point d that refuse to
confess and implement the International Arbitration Verdict, can propose an
appeal.
(3) The Supreme Court consider and decide every appeal proposal as mention on
verse (2) within 90 (ninety) days after that appeal proposal is accepted by the
Supreme Court.
(4) The Supreme Court verdict as mention on Article 66 point e, can not propose an
opposition effort.

Article 69
(1) After The Chairman of State Court of Central Jakarta giving the execution as
mention on Article 64, thus the next implementation delegated to The State
Court relatively has authority to implement it.
(2) Execution confiscate can be done on wealth property and execution the
belonging of the accused.
(3) Confiscation procedure and the verdict implementation follow the procedure as
determined in Civil Agenda Law.

BAB VII
THE CANCELLATION OF ARBITRATION VERDICT
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 Article 70
The parties arbitration verdict can propose the cancellation proposal if that verdict is
presumed contain elements below:
a. Letter or document that is proposed in investigation, after the verdict is brought
down, admitted counterfeit or declared counterfeit;
b. After the verdict is taken, and the document which has characteristic of
determining is found, and concealed by the accused; or
c. The verdict is taken from the deception that is done by one of the party in
lawsuit investigation.

Article71
The cancellation proposal of arbitration verdict must propose in written since the
transfer day and arbitration verdict registration to The State Court Registrar.

Article72
(1) The cancellation proposal of arbitration verdict must proposed to The Chairman
of State Court.
(2) If the proposal as mention on verse (1) is being granted, The Chairman of State
Court determine further consequence entirely cancellation or some arbitration
verdict.
(3) The verdict of cancellation proposal is determined by The Chairman of State
Court within 30 (thirty) days since the proposal as mention on verse (1) is
accepted.
(4) The State Court verdict can proposed an appeal proposal to The Supreme Court
which decide in the first level and the last level.
(5) The Supreme Court consider and decide the appeal proposal as mention on
verse (4) within 30 (thirty) days after the appeal proposal is accepted by The
Supreme Court.

CHAPTERVIII
THE END OF ARBITER DUTY

Article 73
The arbiter duty will be end because:
a. lawsuit verdict have been taken;

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b. the length time that had been determined in arbitration agreement or after it
extended by the parties in the past; or
c. the parties agree to repoint the arbiter.

Article74
(1) The death of one of the party not result in the duty that had been given to
arbiter is end.
(2) The length time of arbiter duty as mention on Article 48 is delayed within 60
(sixty) days since the death of one of party.

Article 75
(1) When the arbiter is death, the reluctant claim is granted or discharge one or
more arbiter, the parties must appoint a substitute arbiter.
(2) If the parties within 30 (thirty) days can not reach an agreement about the
substitute arbiter as mention on verse (1), thus The Chairman of State Court as
a request from the importance party, appoint one or more substitute arbiter.
(3) The substitute arbiter continue the relevant lawsuit settlement based on the last
conlusion that have been done.

CHAPTER IX
ARBITRATION COST

Article 76
(1) Arbiter determine the arbitration cost.
(2) The cost as mention on verse (1) include:
a. honorarium arbiter;
b. the journey cost and other costs that is spent by arbiter;
c. witness cost and or key witness that is needed in lawsuit investigation;
and
d. administration cost.

Article 77
(1) Arbitration cost is imposed by the lose party.
(2) If the claim is just granted a part, arbitration will be charged to the party
equally.
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 CHAPTER X
CHANGE OF STIPULATION
Article78
The lawsuit which this Law begin to prevail, has proposed already to arbiter or
arbitration chamber but the investigation is not start yet, the settlement process will
be done based on this Law.

Article 79

The lawsuit which this Law begin to prevail, has been investigated, but have not
determined yet, will be still investigated and determined based on the prior
stipulation of legislation regulation.

Article80
The lawsuit which this Law begin to prevail, has been overed and the stipulation has
gained the fixed law power, the implementation is done based on this Law.

CHAPTER XI
THE CLOSING STIPULATION

Article 81
At the time this Law begin to prevail, stipulation regarding arbitration as mention on
Article 615 to Article 651 Cicil Agenda Regulation (Reglement op de Rechtsvordering,
Staatsblad 1847:52) and Article 377 The Renew Indonesian Regulation (Het Herziene
Indonesisch Reglement, Staatsblad 1941:44) and Article 705 Regulation Agenda For
Outside Java and Madura Rechtsreglement Buitengewesten, Staatsblad 1927:227), is
declared not valid.

Article82
This Law begin to prevail on the date its legislated.
In order that every people know, command the enactment of the Law with the
placing in Indonesian Republic Sheet.

Legalize in Jakarta
In 12 August 1999
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 President of Indonesian Republic,

Signature

Bacharuddin Jusuf Habibie

Legislated in Jakarta
In 12 August 1999
State Minister for Secretary of State Republic Indonesian,

Signature

MULADI

THE STATE SHEET OF INDONESIAN REPUBLIC YEAR 1999 NUMBER 138

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 THE EXPLANATION OF
THE LAW OF INDONESIAN REPUBLIC
NUMBER 30 YEAR 1999
REGARDING
ARBITRATION AND THE ALTERNATIVE LAWSUIT SETTLEMENT

GENERAL
The implementation of judicial power is submitted to judicature institution with The
Law Number 14 Year 1970 regarding The Stipulations of Main Judicial Power as a
guidance. Those issues are the main and general framework that put the foundation
and judicature principle and also a compass for circles of general judicature , religion
judicature, military judicature, business administration judicature that are organized
in each individual Law.
In the explanation of Article 3 verse (1) Law Number 14 Year 1970 is mentioned that
civil settlement outside the court based on the reconciliation or through arbitration is
allowed, but the arbiter verdict has just executorial power after obtaining a permit or
an order to execution (executoir) from the court.
During this time the foundation of arbitration investigation that is used in Indonesia,
is Article 615 to Article 651 Civil Agenda Regulation (Reglement op de Rechtsvordering,
Staatsblad 1847:52) and Article 377 The Renew Indonesian Regulation (Het Herziene
Indonesisch Reglement, Staatsblad 1941:44) and Article 705 Agenda Regulation For
Outside Java and Madura (Rechtsreglement Buitengewesten, Staatsblad 1927:227).
In the general arbitration institution has excesses compared with judicature
institution. Those excesses are:
a. the secrecy of the parties is guarantee;
b. can avoid the delay that is caused by the procedure things and administrative;
c. the parties can choose an arbiter that is believed has a knowledge, experience
and sufficient background related to the lawsuit, honest and fair; and
d. arbiter verdict is the verdict that bind the parties and through simple procedure
or directly can be implemented.
The fact of the issue that mentioned above is not true entirely, because in the certain
countries judicature process can be faster more than arbitration process. The only
excess of arbitration toward the court is the characteristic of the secrecy because the
decision is not publicated. Therefore the lawsuit settlement through arbitration still
more interesting than litigation, especially for international business contract.
With the trade development and traffic development in commerce both in national
and international also law development in general, thus the system on the Civil
Agenda Regulation (Reglement op de Rechtvordering) that is used as an arbitration com
pass, is not already appropriate, therefore it is needed to redo because international
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trade regulation is necessity of conditio sine qua non meanwhile those issue are not
arranged in Civil Agenda Regulation. Concerning this condition, it is time to
implement the basis changes toward Civil Agenda Regulation (Reglement op de
Rechtvordering) both in philosophy or substantively.
Arbitration that is arranged in the law is the way of lawsuit settlement outside the
public judicature based on the written agreement from the lawsuit parties. But not all
lawsuits can be solves through arbitration, except just for a lawsuit about the right
according to law is dominated entirely by the lawsuit parties as based on their
agreement.
Those issues are intended to keep the lawsuit settlement through arbitration not
become protracted. On the other side the process of state court where the arbitration’s
verdict, still can propose an appeal and the jurisdiction of the highest court beyond,
thus in process of lawsuit settlement through arbitration does not have opportunity to
do an appeal law effort and resurvey.
In order to organize an intact formal law, this Law contains stipulation regarding the
implementation of national arbitration duty or international arbitration duty.
Chapter VI explains regarding the arrangement of verdict implementation in one set,
in order that this Law can operated to verdict implementation, both related to
national arbitration problem or international and it is corrected in the law system.
Chapter VII arrange about the cancellation of arbitration verdict. It is enabled because
of several things, among other below:
a. letter or document that is proposed in the investigation, after the verdict is
being brought down and admitted counterfeit or declared counterfeit;
b. after the verdict is being taken and found that the determining document is
being concealed intentionally by the accused; or
c. the verdict is being taken from the result of deceit that is done by one of the
party in lawsuit investigation.

The proposal of arbitration verdict cancellation is proposed to The Chairman of State

Court and toward that verdict of State Court only can proposed an appeal proposal to
The Supreme Court who decided in the first level and the last level.

Further more in Chapter VIII is arranged about the ends of arbiter duty, which
asserted that the arbiter duty ended because the length time of the arbiter duty have
been finish or the both parties agree to redraw the arbiter appointment. The death of
one of party not result in the duty that have been given to arbiter end.

Chapter IX of this Law organize arbitration cost that is determined by arbiter.

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Chapter X of this Law organize about the shifting stipulation toward the lawsuit that
have been proposed but not in process, lawsuit that is in process or have been decided
and has fixed law power.
Whereas in Chapter XI mentioned with obtaining this Law thus Article 615 to Article
651 Civil Agenda Regulation (Reglement op de Rechtsvordering, Staatsblad 1847:52) and
Article 377 The Renew Indonesia Regulation (Het Herziene Indonesisch Reglement,
Staatsblad 1941:44) and Article 705 Agenda Regulation for Outside Java and Madura
(Rechtsreglement Buitengewesten, Staatsblad 1927:227) are declared not prevail.

ARTICLE BY ARTICLE

Article1
Explicit enough

Article 2
Explicit enough

Article 3
Explicit enough

Article4
Explicit enough

Article 5
Explicit enough

Article 6
Explicit enough

Article 7
Explicit enough

Article 8
Explicit enough

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 Article 9
Explicit enough

Article 10
Point a
Explicit enough

Point b
Explicit enough

Point c
The definition of "novation" is the obligation renewal.

Point d
The definition of "insolvention" is the unable condition to pay.

Point e
Explicit enough

Point f
Explicit enough

Point g
Explicit enough

Point h
Explicit enough
Article11
Explicit enough

Article 12
Verse(1)
Explicit enough

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Verse (2)
The official that is not permitted as mentioned in this verse become arbiter, in order to
guarantee the objectivity of investigation and verdict bestowal by arbiter or
arbitration chamber.

Article 13
Verse (1)
The existence of this stipulation, thus avoiding the impasse in practical whenever the
parties in arbitration requirement are not well and accurate organizing the agenda
that must be taken on arbiter assignment.

Verse (2)
Explicit enough

Article 14
Explicit enough

Article 15
Explicit enough

Article 16
Explicit enough

Article 17
Explicit enough

Article 18
Explicit enough
Article 19
Explicit enough

Article 20
Explicit enough

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 Article 21
Explicit enough

Article 22
Explicit enough

Article 23
Explicit enough

Article 24
Verse(1)
Before assigning an arbiter, the parties has definite estimate the possibility that
become a reason to use a reluctant right. However if that arbiter is still assigned by
the parties, thus the parties are regard as agree not to use reluctant right based on the
facts that they know when assignt that arbiter. Nevertheless, it is not close possibility
emerge the new facts that are not known before, thus give a right to the parties to use
the reluctant right based on those new facts.

Verse(2)
Explicit enough

Verse (3)
Within this verse is organized about reluctant right and the lengeth time.
The length time is considered necessary in order to hampered at any time with the
existence of reluctant right.

Verse (4)
Explicit enough
Verse (5)
Explicit enough

Verse (6)
Explicit enough

Article 25
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Verse (1)
The verdict of Chairman State Court in reluctant right is binding both parties and that
verdict is final and there is no opposition effort.

Verse (2)
Explicit enough

Verse (3)
Explicit enough

Article26
Verse (1)
Explicit enough

Verse (2)
Explicit enough

Verse (3)
Explicit enough

Verse (4)
Explicit enough

Verse (5)
When only one arbiter member is being replaced, investigation can continued based
on official report and the exist letter, by the exist arbiter enough.

Article27
The stipulation that investigation is secured is deviate from stipulation of civil agenda
that obtain in The State Court which is in principle open for public. Those things are
in order to assert the secrecy of arbitration settlement.

Article 28
Explicit enough

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 Article29
Verse (1)
Explicit enough

Verse (2)
Agree with general stipulation about civil agenda, is given an opportunity to the
parties to appoint their authority with the special authotiry letter.

Article 30
Explicit enough

Article 31
Verse (1)
Explicit enough

Verse (2)
Explicit enough

Verse (3)
The parties may agree the location and the length time as their wishes. Whenever they
do not made a stipulation about this issue, thus arbiter or arbitration chamber will
determine it.

Article 32
Explicit enough

Article 33
Point a
The meaning of “special certain matter”, as an example because of the existence of
claim between or incidental claim outside the main lawsuit like a guarantee proposal
as mention on Civil Agenda Law.

Point b
Explicit enough
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Point c
Explicit enough
Article 34
Verse (1)
Explicit enough

Verse (2)
This verse provides the freedom for the parties to choose regulation and agenda that
will be used in lawsuit settlement between them, without have to use the regulation
and the agenda from the chosen arbitration chamber.

Article 35
Explicit enough

Article 36
Verse (1)
Explicit enough

Verse (2)
In principle arbitration agenda is done in written. If there is an agreement from the
parties, investigation can be done in oral.
The key witness information as mentioned on Article 50, can occur in oral if it
considered necessary by arbiter or arbitration chamber.

Article37
Verse (1)
Stipulation of arbitration location is important especially when there is a foreign law
element and a lawsuit become an international civil lawsuit. In common location
arbitration also can determine the law that must be used to investigate that lawsuit if
the parties can not determine theirselves thus arbiter can determine arbitration
location.

Verse (2)

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In verse (2) is given opportunity to hear the witness in other location from the
arbitration location, for example related to the domicily of relevant witness.

Verse (3)
Explicit enough

Verse (4)
Explicit enough

Article38
Verse (1)
Explicit enough

Verse (2)
Point a
Explicit enough

Point b
The copy of arbitration agreement must proposed as an attachment.

Point c
The claim contents must clear and when the content is in the form of money, must
mentioned clear amount

Article 39
Explicit enough

Article 40
Explicit enough

Article 41
Explicit enough

Article 42
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Verse(1)
This verse organizes about reconvention claim that proposed by the accused.

Verse(2)
Explicit enough

Article 43
Agree with the civil lawsuit become discharge when the litigant not come to confront
the first day of investigation.

Article 44
Explicit enough

Article 45
Explicit enough

Article 46
Explicit enough

Article 47
Explicit enough

Article 48
Verse (1)
The length time determination of 180 (a hundred eighty) days as a length time for an
arbiter to finish the relevant lawsuit through arbitration is in order to guarantee time
assurance for arbitration investigation settlement.

Verse(2)
Explicit enough
Article 49
Explicit enough

Article 50

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Explicit enough

Article 51
Explicit enough

Article 52
Without any lawsuit, arbitration chambercan receive a request that proposed by the
parties in an agreement, to provide a binding opinion about an issue that related to
that agreement. For example about the vague exegesis stipulation, addition or
stipulation changes that related to the emerge a new condition etc. Providing the
opinion by that arbitration chamber, both parties are binding to it and one of the party
that do something in contradiction with that opinion considers contravene the
agreement.

Article 53
Explicit enough

Article 54
Explicit enough

Article 55
Explicit enough

Article 56
Verse(1)
In essence the parties can make agreement in order to determine that the arbiter who
deciding the case must based on law stipulation or agree with justice and fairness (ex
aequo et bono).
If arbiter is given the freedom to decide the verdict based on justice and fairness, thus
the law stipulation can put aside. However, in certain case, the insisting law
(dwingende regels) must applied and can not put aside by arbiter.
If arbiter is not given authority to decide the verdict based on justice and fairness,
thus arbiter only can provide the verdict based on material law principle as done by
the judge.

Verse(2)

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The lawsuit party are given the freedom to determine which law will be applied in
arbitration process. If the parties are not determined any, thus the law that will be
applied is the law where the arbitration location go on.

Article 57
Explicit enough

Article 58
The meaning of “ correction of administrative error” is the correction toward issues
like typing error or error in writing a name, addresses of the parties or arbiter etc,
which is not changing the substantive verdict.
The meaning of “adding or lessen the claim” is one of the party can raise objections
toward the verdict if it:
a. has fulfill something which is not claimed by the accused;
b. has contain one or more issues which is proposed to decide; or
c. contain binding stipulation that is in contradiction each other.

Article 59
Explicit enough

Article 60
Arbitration verdict is a final verdict therefore can not proposed an appeal or the
jurisdiction of the highest court beyond or resurvey.

Article 61
Explicit enough
Article 62
Verse(1)
Explicit enough

Verse (2)
Explicit enough

Verse (3)
Explicit enough

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Verse (4)
The motive or consideration of arbitration verdict that is not investigated by The
Chairman State Court is in order to bind the arbitration verdict and truly independent
also final.

Article 63
Explicit enough

Article 64
Explicit enough

Article 65
Explicit enough

Article 66
Point a
Explicit enough

Point b
The meaning of “trade law scope” is the activities in the field of:
- Commerce;
- Banking;
- Finance;
- Capital investment;
- Industry;
- Right of intellectual wealth.

Point c
Explicit enough

Point d
An International Arbitration Verdict can only implemented with the stipulation of
The Chairman State Court of Central Jakarta in form of implementation command
(execuator).
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Point e
Explicit enough

Article 67
Explicit enough

Article 68
Explicit enough

Article 69
Explicit enough

Article 70
The cancellation proposal can only proposed to arbitration verdict that have been
registered in the court. The cancellation proposal motives that mentioned in this
article must be proven with the court vercidt. If the court asserted that those motives
proven or unproven, thus the court verdict can be used as a consideration basis for
the judge to fulfill or refuse the proposal.

Article 71
Explicit enough

Article 72
Verse (1)
Explicit enough

Verse (2)
The Chairman of State Court is given authority to investigate the cancellation claim if
requested by the parties, and arrange the consequence of the entire cancellation or
part of cancellation from the relevant arbitration verdict.
The Chairman State Court can decide that after the cancellation is being expressed,
the same arbiter or the other arbiter will reinvestigate the relevant lawsuit or
determine that the lawsuit is not possible any more to solve through arbitration.

Verse (3)
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Explicit enough

Verse (4)
The meaning of “appeal” is only toward the cancellation of arbitration verdict as
mentioned on Article 70.

Verse(5)
Explicit enough

Article 73
Explicit enough

Article 74
Explicit enough
Article 75
Explicit enough

Article 76
Explicit enough

Article 77
Explicit enough

Article 78
Explicit enough

Article 79
Explicit enough

Article 80
Explicit enough

Article 81
Explicit enough
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 Article 82
Explicit enough

THE STATE ADDITIONAL SHEET OF THE INDONESIA REPUBLIC NUMBER

3872

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