OBJECTIVE AND SCOPE

BANI was established for the following purposes:

FIGURE 1
To participate actively in the law enforcement Cases Submission to BANI Arbitration Center
process in Indonesia through the application of 1977-2018

arbitration and alternative dispute resolution

BANI ARBITRATION CENTER for resolving disputes in the various sectors of
Promulgation of RI Law 30/1999
concerning Arbitration and ADR
12 August 1999
trade, investment, industry and finance, such as
BANI Arbitration Center (BANI) is an arbitral institution, providing a range of
corporate, insurance, financial institution matters,
1977-1999 2000-2018
services in relation to arbitration, mediation, binding opinion and other form of aviation, manufacturing, telecommunication, sea, prior to Law 30/1999 after Law 30/1999 is in effect

dispute resolutions. land and air transportation, mining, intellectual

property rights, licensing, franchise, construction,
BANI was established by of Indonesia Chamber of Commerce and Industry shipping/maritime issues, environmental issues,
(KADIN Indonesia) by Decree No. SKEP/152/DPH/1977 in November 30, remote sensing and others within the scope as set
1977, signed by Mr. Soewoto Soekendar (Marsekal TNI), the Chairman, and forth by laws and regulations and international 162 cases 1008 cases
practices. in 22 years in 19 years
Mr. Drs Susdam Djamhari, the Secretary General of Indonesia Chamber of
Commerce and Industry. The chairmen of BANI in their prospective times To provide services for the dispute settlement The growing interest has been consistent with the
were Prof. R. Subekti (1977-1987), Mr. Haryono Tjitrosoebono (1988-1993) through arbitration or other forms of alternative globalization in which out of court settlement has
dispute resolution, such as negotiation, become the preferred choice of business entities
and Prof. H. Priyatna Abdurrasyid (1993-2015). Since 2015 BANI is chaired
mediation, conciliation and binding opinion in to resolve disputes. Besides it is speedy, efficient,
by Mr. M. Husseyn Umar, SH, FCBArb, FCIArb. BANI is located in Jakarta with
accordance with the Rules of Procedures of BANI direct, and has final and binding characteristics,
 ª '     
1M 
M. M or other rules as opted by the parties. without possibility of appeal or cassation. Other
Denpasar, Medan, Palembang and Jambi. benefit of arbitration is the confidentiality, in which
To act autonomously and independently in the proceeding and the award are not published.
Since the establishment through its development for the last 41 years, it can be regard of upholding law and justice. The growth of registered cases in BANI is shown in
said that the resurgence of arbitration as a mean of resolving business disputes below graph.
To carry out studies, research and training/
outside the courts in Indonesia only occurred and developed after the birth and education programs as well as seminars or
establishment of BANI in 1977. Through the 41 years, throughout its growth, work shops per taining to arbitration and
BANI issued a publication entitled “BANI 41st Anniversary: The Resurgence of alternative dispute resolution. FIGURE 2
Cases registered to BANI
Arbitration in Indonesia / BANI 41 Tahun, Kebangkitan Arbitrase di Indonesia” In Indonesia, the significant interest to settle 2000-2018
illustrates a flashback to various activities and the development of BANI over dispute through arbitration began to rise with
41 years. the promulgation of Law Number 30 of 1999 on
500 473
Arbitration and Alternative Dispute Resolution
400
Committed to complete neutrality and independence in its role as an arbitral (Arbitration Law). Before the enactment of Law
institution, BANI has developed its own rules and procedures for arbitration, No. 30 of 1999, the basis for examining arbitration
310
in Indonesia is Article 615 up to Article 651 RV 300
including the time frame in which the Arbitration / Arbitral Tribunal has to render
(the Law as Civil Procedure, Reglement op de
award. Such rules are used in both domestic and international arbitration taking 200
Rechtsvordering, Staatsblad 1847:52) and Article
place in Indonesia. 377 of the Updated Indonesian Laws (Het Herziene 132
Indonesisch Reglement, Staatsblad 1941:44) and 100 93
Article 705 Progam Regulations for Outside Java
and Madura (Buitengewesten Rechtsreglement, 0
2000- 2005- 2010- 2015-
Staatsblad 1927:227). The Figure 1 graph shows 2004 2009 2014 2018
the arbitration settlements before and after the (4 years)

enactment of Law No. 30 of 1999.

2 3
 BANI panel of arbitrators consists of professional of h. Singapore Institute of Arbitrators (SIArb) growing. Currently it has 48 (forty eight) arbitration
FIGURE 4
various fields and expertises, of which about fifty Cases in Domestic and Foreign / International i. Arbitration Association of Brunei institutions throughout the region. In 2016 BANI
percent are foreign nationals. Arbitration / Involvement, 2014-2018 Darussalam (AABD) was honoured to be the host of APRAG Conference
j. Asian International Arbitration Centre 2016 in Bali, and in this event Mr. M. Husseyn Umar,
The types and proportions of cases handled can (AIAC) the current Chairman of BANI, has been elected as
be seen in below graph. In the last five years it 9.27% k. Belgian Centre for Arbitration and the President of APRAG.
appears that the disputes in the construction sector international
arbitration Mediation (CEPANI)
are proportionally the most settled cases in BANI. l. Thai Arbitration Centre (THAC) In the spirit of regional cooperation, in 2007 BANI
Meanwhile disputes cases in the leasing business m. Bangladesh International Arbitration along with 5 (five) arbitral institutes established
sector has a tendency to increase, close to the Centre (BIAC) Regional Arbitral Institute Forum (RAIF), which later
number of construction sector cases. with the establishment of Indonesian Arbitrators
90.73% n. China International Economic and Trade
Institute (IArbI), in 2012, BANI membership was
domestic arbitration Arbitration Commission (CIETAC)
FIGURE 3 handed over to IArbI. Nevertheless, in 2012 BANI was
Sector of Industries, 2014-2018 BANI also participated in various international honoured to host the annual RAIF conference along
conference in arbitration either as participant or with an international seminar on arbitration in 2012
SECTORS % speaker. in Bali and in 2018 in Jakarta.
BANI had also been dealing with disputes settlement
Construction 26.6%
involving foreign companies, either companies In 2004 BANI and other 16 arbitration institutions in BANI is also a member of the ICCA (International
Leasing 23.0%
operating in Indonesia or companies located the region initiated the establishment of Asia Pacific Council for Commercial Arbitration). At present, ICCA
IT & Telecommunication 14.7%
overseas. Regional Arbitration Group (APRAG) in Sydney has 40 Governing Board Members and 40 Advisory
Trading (Sale and Purchase) 8.9%
(Australia). APRAG membership is increasingly Members coming from 38 different countries.
Mining/Energy 6.4%
Investment 3.9%
.
Transportation 2.8%
DOMESTIC COOPERATION
Insurance 1.7%
Agency 1.1% To run its mission in arbitration development and e. Universitas Sebelas Maret, Solo
Finance & Banking 0.3% knowledge dissemination, BANI has signed MoUs f. Universitas Jayabaya, Jakarta
Others 10.8% with various domestic institutions and universities. g. Universitas Gadjah Mada, Yogyakarta
The strategic partners that have cooperation with h. Universitas Diponegoro, Semarang
BANI are among others : i. Universitas Padjadjaran, Bandung
NETWORK AND COOPERATION a. Lembaga Pengembangan Jasa Konstruksi j. Universitas Hasanuddin, Makassar
Nasional (LPJKN); k. Universitas Jambi, Jambi
Throughout the age of more than 41 years, BANI These arbitration associations and centres include,
b. Perhimpunan Advokat Indonesia (Peradi); l. Univeritas Mulawarman, Samarinda
has made a real contribution in the development among others, the following institutions:
c. Ikatan Notaris Indonesia (INI); m. Universitas Panca Bhakti, Pontianak
of arbitration and alternative dispute resolution in a. Japan Commercial Arbitration Association
d. Kamar Dagang dan Industri Indonesia n. Universitas Tanjungpura, Pontianak
Indonesia, marked by the increasing resolution of (JCAA)
(KADIN Indonesia)
disputes cases settled, the development of rules b. Netherland Arbitration Institute (NAI )
and procedures, and management of arbitration c. Korean Commercial Arbitration Board
hearings. (KCAB)
ARBITRATION CLAUSE
d. Australian Centre for International
Besides, BANI participates in the development of Commercial Arbitration (ACICA) BANI recommends all parties wishing to make ‘’All disputes arising from this contract shall be finally
Indonesia’s human resources, in particular with e. Philippines Dispute Resolution Centre, Inc. reference to BANI arbitration, to use the following settled by arbitration under the administrative and
respect to education / knowledge and awareness in (PDRCI) standard arbitration clause in their contracts: procedural Rules of Badan Arbitrase Nasional Indonesia
arbitration and alternative dispute resolution f. Hong Kong International Arbitration (BANI) by arbitrators appointed in accordance with the
Centre (HKIAC) said Rules, which decision shall bind the parties and
BANI has established cooperation agreements
g. The Foundation for International serve as a decision in the first and final instance”.
with arbitration associations and centres in other
Commercial Arbitration and Alternative
countries for the purpose of promoting international
Dispute Resolution (SICA-FICA)
commercial arbitration and other forms of ADR.

4 5
WHY ARBITRATION ?
Resolving dispute through arbitration has the
following general advantages:
» Cl o s e d p r o ce e d i n g (co n f i d e nt i a l i t y i n
proceeding)
» Simple procedure (flexible procedures and
parties autonomy)
» Time certainty (with time limitation)
» Free choice of independent arbitrators with
professional background
» Free choice of jurisdiction and venue
» Final and binding award.
The effectiveness of arbitration depends on :
» Good faith / attitude of the disputing parties to
solve the differences/dispute
» The integrity and professionalism of the
arbitrator(s)
» The readiness of the parties to voluntarily
implement the award
» The attitude of the court whenever necessary
with regard to the execution / enforcement of
the award.
HYBRID ARBITRATION AND ADR
BANI Arbitration Center has been combining
arbitration procedures with other ADR mechanism
since 2000, which predates the RI Supreme Court
Circular Memorandum promoting the pre-trial court
annexed mediation to be implemented by all state
courts in Indonesia.
ADR in a combined process into arbitration
procedure in BANI (in practice through application
of med-arb and/or arb-med proceedings) has
successfully carried out and resulted in awards
in almost 50% of the total arbitration procedures
conducted.
6 7
Dispute resolution through arbitration is the answer
for business which time is vital issue. According to
the Law, it must be settled in 180 days. But in BANI
the awards can be produced faster, around three
quarters of cases have been completed in less than
180 days. Even more, one third of disputes can have
the awards in less than three months. It is quite time
efficient. The graph below illustrates the speed of
settlement of cases in BANI in the last five years.
FIGURE 5
COMPLETION TIME, Time Required for BANI
Arbitration Tribunal to Issue Awards, 2014-2018
34%
<90 days 24%
112 cases 90-150 days
81 cases
13%
150-180 days
29% 43 cases
>180 days
97 cases
The implementation of “Hybrid Arbitration” found to
be concurrent with out-of-court dispute settlement
philosophy (non litigation dispute settlement)
which in seeking the solution of a dispute between
parties the arbitration tribunal should take into
account not only “right based” consideration, but
also acknowledge the “interest based” view of the
parties.
BINDING OPINION
In facing a potential dispute in a contract
implementation, in particular with respect to the
interpretation of certain issue in the contract or an
unpredictable circumstance arise which may affect
the implementation of the contract the Indonesian
Arbitration Law provides a prevention measures for
both parties by requesting to BANI for a Binding
Opinion.
ARBITRATION AWARDS
The crucial issues of the arbitration are enforcement
and recognition of the awards.
Based on the New York Convention (1958), foreign
awards can be executed in Indonesia, and similarly,
Indonesian arbitration awards involving foreign
companies are enforceable in other countries.
As the prominent and the oldest arbitration
institution in Indonesia and the region, BANI awards
have been strongly acknowledged. The Indonesian
Supreme Court has been upholding the BANI
Arbitration Awards.
BANI REPRESENTATIVE OFFICES
BANI has representative offices in seven major cities
in Indonesia: Bandung, Surabaya, Medan, Pontianak,
Palembang, Denpasar and Jambi.
Any representatives office can be chosen by the
Parties as a venue for arbitration by using BANI
Rules & Procedures. It should be noted that the
BANI Representative offices is not jurisdiction, so this
makes it easier and possible for the Parties to choose
venues that are more in line with the needs of the
parties themselves.
They can request BANI for instance to grant a
binding opinion with regard to: the interpretation
of ambiguous provisions in the contract, the
formulation of new regulation or the revisions of
the old regulation to meet changing circumstances,
etc. BANI’s binding opinion is final and binding
upon the parties.
Along 41 years of BANI history, even though the
requirements for the annulment is strictly limited,
there were around 14 percent of the awards were
challenged in courts. However, at last, there were
only 4 awards (i.e. in year 2001, 2002, 2007 and 2013)
that were annuled by the Supreme Court.
This fact figures out that only 0,5% of awards were
annuled. Afterwards, there have been 5 years
without any annulment since 2013. We can conclude
that the success rate of the arbitration in Indonesia
is significant .
BANI has been actively organizing and participating
in various national and international various
conferences or seminars on arbitration / alternative
dispute resolution. BANI publishes the Indonesia
Arbitration Quarterly Newsletter, a quarterly legal
journal, publishing recent development and analysis
on arbitration, and related knowledge on the
alternative dispute resolution. Prominent arbitrators,
scientists and practitioners either from Indonesia or
abroad contribute their works in each issues of the
journal.
 B A N I 2 0 1 9

BADAN ARBITRASE NASIONAL INDONESIA

B A N I A R B I T R AT I O N C E N T E R
Wahana Graha Buiding, 1st,2nd & 4th Floor, Jl. Mampang Prapatan No. 2, Jakarta 12760, Indonesia
Tel. (62-21) 7940542, Fax (62-21) 7940543 e-mail: bani-arb@indo.net.id
www.baniarbitration.org

BANI Bandung Office Kompleks Surapati Core Blok AB No. 33 BANI Pontianak Office Komp. Ayani Mega Mall Blok AA-6
Jl. PHH Mustofa (Suci) Jl. A. Yani, Pontianak 78122
Bandung 40125 Phone : +62 (0561) 66 55 299
Phone : (022) 7152 0320 Fax : +62 (0561) 761 018
Fax : (022) 8724 2706 E-mail : sekretariat@banipnk.com
E-mail : banibandung@gmail.com
BANI Palembang Office Jl. Alamsyah RPN (Musi 2)
BANI Surabaya Office Jl. Ketintang Baru VIII/10 Komplek BOP A No. 04-05
Surabaya 60231 Palembang 30139
Phone : +62 (031) 8287414, 8293486 Ph./Fax : (0711) 5630744
Fax : +62 (031) 8290522 E-mail : banisumsel@gmail.com
E-mail : banisurabaya1@gmail.com
BANI Bali & Nusa Tenggara Gedung KADIN Bali Lt. II
BANI Medan Office Jl. Sekip Baru No. 16 Jl. Mawar No. 3, Denpasar, Bali 80233
Medan 20112 Ph./Fax : +62 (0361) 233053
Phone : +62 (061) 4523654 E-mail : banibalinusra@gmail.com
Fax : +62 (061) 4155523
E-mail : banimedanoffice@gmail.com BANI Jambi Office Jl. Jend. Sudirman No. 88, Thehok, Jambi
Phone : (0741) 31185
Fax : (0741) 31185
E-mail : aldipanri@gmail.com