The International Journal of Social Sciences World

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Vol. 4 No. 2, July-December 2022, pages: 307~

DO :
ISSN : 2690-5167
Growingscholar Publisher

The Urgency Of Indonesian National Arbitrage Agency

(Badan Arbitrasi Nasional Indonesia / Bani) In Dispute
Settlement of Trade Agreements in Manado
Wulanmas APG Frederik1, Deine Ringkuangan2, Elko Lucky Mamesah3, Djefry Welly Lumintang4,
Royke Yesdaven Jermia Kaligis5, Mercy Maria Magdalena Setlight6, Marcel Reci Maramis7

Keywords Abstract

The objectives in this study are: First, Business Development in

BANI;
Manado; Second, the Opportunity in Manado for the Indonesian
National Arbitrage Agency (Badan Arbitrase Nasional Indonesia /
Dispute BANI) as a forum for Parties to choose Non-Litigation Dispute
Settlement Institutions, not only through Litigation Institutions;
Settlement; Third, the Process of Settling the Trade Agreement Dispute by the
Indonesian National Arbitrage Agency (BANI).Based the above facts,
Trade Agreement; of course in the agreements of the parties there is a high risk of
disputes occurring. This is, of course, the opportunity for the
existence of BANI to help resolve the Non-Litigation Trade Dispute in
Manado; Third, permanent dispute resolution is one of the most
important aspects of business transactions at any time. BANI's scope
of work is the resolution of disputes arising from agreements on
trade, industry, and finance (business contracts), namely corporate,
insurance, finance, patents, copyright, aviation, telecommunications,
space, cooperation, mining, sea and air
transportation,environment, fabrication, industry, trade, licensing,
agency, intellectual property rights, design, consulting, distribution,
maritime, construction, shipping, and remote sensing. The
implementation of dispute resolution through arbitration, such as
negotiation, mediation, conciliation and binding opinions in
accordance with the BANI rules and procedure or other procedural
regulations agreed upon by the parties concerned.

11,2,3,4,,5,6,7,
Sam Ratulangi University. Manado, Indonesia. E-mail Correspondent:wulanmas_racyfrederik@yahoo.com
2
3

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1. Introduction

Arbitration institutions in the last two decades of their existence in resolving trade
disputes throughout the world has experienced a tremendous increase. The main reason for this
increase is the increasing cross-border trade transactions. In the view of entrepreneurs, one of the
advantages that is sufficiently calculated for resolving disputes through arbitration compared to
the court is the final and binding nature of the arbitration verdictordecision. Dispute resolution
through arbitration is confidential. Meanwhile, publicity in the settlement of disputes in the district
court is difficult to avoid because the district court is bound by the principle of the nature of the
trial, which allows everyone to be present and to hear the case hearing at the trial.
Arbitration is referred to as a peace court, where the parties to a dispute or disagreement
want their dispute about personal rights to be fully under their control, are examined and tried by
a fair judge who does not side with any one of the disputing parties and produces binding
verdictsordecisions for both parties. The settlement of disputes in arbitration is based on the
agreement that the disputing parties will submit and obey the decisions given by the judge or the
judges they choose or appoint directly.Therefore, arbitration is referred to as a peace court, where
the parties to the dispute or disputes want their dispute about personal rights to be fully under
their control, examined and tried by a fair judge who does not side with any one of the disputing
parties and produces verdictsordecisions that are binding on both parties.
Disputes or conflicts in various business activities are actually something that is not
expected to occur, because it can cause harm to the parties to the dispute, whether they are in the
right position or in the wrong position. Therefore, business disputes need to be avoided to
maintain good reputation and relationships going forward. However, disputes are
sometimesunavoidable because of misunderstandings, violations of legislation, broken promises,
opposing interests, andoror losses to one party.
The dispute process occurs because there is no meeting point (Harahap,1997) between the
parties to the dispute. Potentially, two parties who have different stancesoropinions can move to
a dispute situation.The Indonesian National Arbitrage Agency (BANI) is one of the national
arbitration institutions and is an independent institution that provides diverse services not only
with regard to arbitration, but also other forms of settlement out of court. BANI is also an
autonomous entity to guarantee integrity, it is stated that BANI cannot be interfered with by any
other power. The initiative to establish the Indonesian National Arbitrage Agency (BANI) by the
Indonesian Chamber of Commerce and Industry (Kamar Dagang dan Industri Indonesia or KADIN)
was obtained through Act No. 1or1987 concerning the Indonesian Chamber of Commerce and
Industry, which stated that in order to foster Indonesian entrepreneurs, KADIN could services both
in the form of giving certificates, arbitration services, and recommendations regarding the
businesses of Indonesian businessmen including the legalization of the documents needed for the
smooth running of their businesses (Widjaja,2001).

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In addition to arbitration services and recommendations regarding the businesses of

Indonesian businessmen including the legalization of the documents needed for the smooth
running of their businesses. BANI has issued an arbitration procedure that came into force on 3rd
December 1977. BANI is based in Jakarta and other branches are spread across Indonesia where
BANI branches have established in a place deemed to require an arbitration institution, namely
large cities that have large trade crossings. BANI has representatives in several major cities in
Indonesia, namely Surabaya, Bandung, Pontianak, Denpasar, Palembang, Medan and Batam.To be
able to submit an arbitration issue through BANI, an agreement or a clause written in the
agreement of both parties must state "submit the dispute to BANI" or to an arbitration procedure
by "submitting to the procedure rules to BANI ".

2. Materials and Methods

This study is a normative ordoctrinal legal research that is prescriptive 14. Soerjono Soekanto
and Sri Mamudji suggest that normative legal research or library legal research as
(Soekanto,1990):“Legal research is done by examining library materials or mere secondary data.”
There are several approaches taken in this research activity, namely the statute approach which is
the approach to legislation related to the urgency process of BANI in settling the trade agreement
dispute in Manado.Furthermore, for Empirical Research through empirical data sources obtained
from the collection of questionnaires and key informant interviews, namely: the Manado City
Government, that is the relevant Government Department of Trade and Manado, Law
Enforcement, and Trade Agreement Actors.
In the first stage, the collection of materials is carried out with various techniques and
methods such as collecting secondary data which consists of: Primary legal materials, namely legal
binding materials in the form of relevant laws and regulations in relation with Act No. 30or1999
concerning Arbitration and Alternative Dispute Resolution, BANI, and settlement of disputes I n
the Trade Agreement; Secondary legal materials, namely materials that provide an explanation of
primary legal materials, such as legal literature, legal and economic journals, and papers related to
this research; Tertiary legal materials, namely other materials that are more specific to explain the
primary and secondary legal materials such as legal dictionaries, economic dictionaries, and
encyclopaedias.Legal materials collected from various literature, both from within the country and
abroad. The next stage of legal materials is arranged systematically in a comprehensive manner
based on the order of legal materials.
In obtaining accurate and significant results, data is collected through library studies,
collected and processed by performing a normative juridical approach. The data obtained is
intended to obtain conceptions, theories or doctrines, opinions or conceptual thoughts from
previous studies that relate to the object of the study review.
Data analysis is the process of organizing and sorting data into basic description categories
and units, so that themes can be found and work hypotheses can be formulated as suggested by the
data. The data that has been collected with the library study is then analyzed using qualitative
analysis methods that are supported by the logic of deductive thinking
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3. Results and Discussions

Natural Wealth
The Province of North Sulawesi is one of the most potential areas seen in terms of natural
resources and human resources with a population of 2,175,808 people (according to data from the
RegenciesorCities in the Province of North Sulawesi in 2007). The potential of natural resources
can be explained as follows:The cultivation of food crops includes rice, secondary crops,
vegetables, and fruits. Rice fields with technical and semi-technical irrigation are generally planted
twice a year; secondary crops including corn, cassava, sweet potatoes, peanuts, and green beans
are planted in moors, in the yards, or under coconut trees in monoculture, culture, or polyculture.
Vegetable crops are cultivated in the highlands and the largest areas are in the Minahasa
Districts such as Tomohon, Langowan, and Modoinding. Fruit trees cultivated by farming
communities include rambutan, papaya, and mango are generally found in the Minahasa district of
Dimemebe, whereas salak can be found in the Minahasan districts of Ratahan and Tagulandang
Satal.
The main products of North Sulawesi are from plantation crops which play a role that involves
most people in this area.About 70% of people’s livelihoods and income come from plantation
crops such as Coconuts, Cloves, Nutmeg, Vanilla, Chocolate, and others. About 60% of the total
plantation area, which are coconut plantations, are carried out both in large plantations and small
plantations. Nutmeg plants are cultivated by farmers, especially in the Island of Siau, the Sangihe
Talaud Regency, and the district of Tonsea in the Minahasa Regency. The nutmeg plant is the third
largest commodity after coconuts and cloves.Nutmeg plants are cultivated by farmers, especially in
the Island of Siau, the Sangihe Talaud Regency, and the district of Tonsea in the Minahasa
Regency. The nutmeg plant is the third largest commodity after coconuts and cloves.Vanilla is one
of the plantation commodities that has recently been developed in this area but has a fairly good
development because it is an export commodity and has a high economic value.
Other plantations crops such as coffee, chocolate, cashew, pepper, nutmeg, ginger,
cinnamon, and cardamom developments are still small compared to other plantation crops in this
area.

The main types of livestock maintained by the people of North Sulawesi are cowsorcattle,
pigs, goats, chickens, ducks, and horses, are the most common types of livestock. The main purpose
of maintaining livestock is generally to obtain meat and egg production, although in the meantime
it is only to meet local needs.
Except for cattle, in addition to the meat needed as animal protein they also function as a
substitute for machinery or humans in the field of labor in the agriculture, transportation, and
tourism sectors.Horses – in addition to their main function as toolsoranimals that pull the

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traditional bendi vehicles, carts, and wagons – also have a high economic value in horse racing
sports that are very popular with the people of North Sulawesi.Pig farms are generally maintained
by the Minahasan community, while goats are generally maintained by the community in the
Bolaang Mongondow area.Poultry in the form of ducks and quails are almost evenly present in this
area, especially native chickens and sucks, while their production in the form of meat and eggs are
a household consumption as well as additional income. Professional chicken farms have been
developed by companies as well as individuals.North Sulawesi marine fisheries have a high
potential, especially in several types of fish and other marine products that can be managed
economically for local and export needs. Fishing in the sea has led to the use of motorization even
though most fishermen still use traditional methods.
Fish species found in the waters of North Sulawesi include Tuna, Skipjack, Mackarel, Lolosi,
Yellow Tail, while hard-skinned fish include Shrimp, Crabs, and Chopper, and soft-skinned fish
include Squids, Crabs, Turtles, and Sea Cucumbers.Other marine products that are expected to do
well in the future include Seaweed, Sea Pearls, and other Marine Biota businesses that have been
professionally cultivated.There are other fishing centers in North Sulawesi besides that in the city
of Bitung, such as in: Dagho in Sangihe and also Labuan Uki and Kotabunan Molibagu in the
Regency of Bolaang Mongondow.Maintenance of fish on land are found in pools, dams, ponds,
paddy fields, whilst fishing is carried out in rivers, streams, and lakes. The types of fresh fish that
are found in North Sulawesi include Carp, Mujair, Tilapia, Payangka, Shrimp, and others.
The Forest Area in the North Sulawesi Province is currently around 1,877,220 Ha.
According to the Forrest Use Procedure, the North Sulawesi Province is divided into different
functions such as Forrest Protections, NatureorTourism Forests, Permanent Production Forests,
Limited Production Forests, Production Forests, and Mangrove Forests.
Wood types vary from first grade to fourth grade wood. The types of wood in question are
iron wood, meranti, linggua, cempaka, nantu, gopasa, agatis, and other local wood. Besides those,
there are also follow-up forest products that have economic value and added value such as rattan,
resin, cinnamon, palm fiber, woka leaves, and others.
Based on the results of a survey conducted, it shows that there are many valuable outcrops
of minerals with a large deposit, including: 1). Copper, found in the Districts of Bolaang
Mongondow, Minahasa, and Sangihe Talaud; 2). Gold and Silver, found in the Districts of Sangihe
Talaud, Minahasa, North Minahasa, South Minahasa, and Bolaang Mongondow; 3). Nickel and
Titanium, found in the District of Sangihe Talaud; 4). Iron, found in the District of Minahasa; 5).
Manganese, found in the District of Minahasa; 6). Raw Materials for Cement, found in the District of
Bolaang Mongondow; 7). IronorBlack Sand, found in the Districts of Sangihe Talaud, Minahasa, and
Gorontalo; 8). Sulfur, found in the Districts of Minahasa and Bolaang Mongondow. Another well-
processed material for excavation is Kaolin which can be found in Toraget, Minahasa. Whereas C
excavation materials – such as sand, stone, gravel, trass, and others – are almost evenly distributed
throughout the entire province of North Sulawesi. Mining materials which currently contribute
enough to the region are gold mines that are managed by companies and individuals.
The development of the sub-sector of energy and electricity is prioritized to meet the needs
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in the framework of improving the welfare of the consumer community, besides also fulfilling the
needs for the supply of industrial electricity, both the home industries and the large-scale
industries.
There are geothermal power plants in Lahendong in the Regency of Minahasa with a capacity of
around 300 MW.
There are several airports in North Sulawesi, namely: Sam Ratulangi Airport (Manado),
Naha and Melanguane Airports (Sangihe Talaud). Sam Ratulangi Airport is the main airport in
North Sulawesi which functions as one of Indonesia’s main destination ports and as a transit port
for the North Sulawesi region and areas around North Sulawesi, such as: Maluku, North Maluku,
Irian Jaya, and Kalimantan.
Even now, after the development of good airport runway facilities for aircrafts to land such
as Air Bus A.300 and DC-10, as well as the construction of representative main terminals, Sam
Ratulangi Airport has become one of the International Airports in Indonesia.At present, the direct
international flight routes that go through Sam Ratulangi Airport are Manado-Singapore, Manado-
Davao, and Manado-Taipeh lines. In addition to the Sam Ratulangi Airport, North Sulawesi also has
an airport for local flights, such as Naha and Melangguane Airports in the Sangihe and Talaud
Districts which serve local flights.
The relation of sea transportation is carried out through Local, Archipelagic, and
OceanorInternational Ports. The main port serving sea transportation in North Sulawesi and
eastern Indonesia – even overseas – is the Bitung Port. Currently, the Bitung Port facility is being
developed, especially the container loading and unloading facilities.
It is expected that the Bitung Port will function as a cargo consolidation center in the Asia
Pacific region in the future. In addition, the Bitung fishing port is currently being built, which will
later become the entrance gate for the fish trade in North Sulawesi. The Bitung Port can be used
throughout the year because it is a Natural Port and can accommodate many types of ships up to
60,000 tons. Besides the Bitung Port, there are also other (local) ports in the North Sulawesi
Province, namely: Ports in Manado, Tahuna, Labuan Uki, Ulu Siau, Lirung, Kotabunan, and Belang.
In North Sulawesi there are several interesting tourist objects that are currently in development,
namely: Marine Tourism, including: 1). Bunaken Marine Park, Siladen Island, Mantehage and a
stretch of Marine Park in Sangihe Talaud, and Bolaang Mongondow; 2). Natural tourism, including:
Dumoga Bone National Park in Bolaang Mongondow, Tangkoko Batu Angus Nature Reserve in
Bitung, Lake Tondok, Mount Ambang in Bolaang Mongondow, and Sumaru Endo on Lake Tondano;
3). Cultural Heritage Tourism in the form of Old GravesorWaruga in Sawangan and Japanese
Heritage Caves in Kawangkoan; 4). Religious Tourism, including: Bukit Kasih (Love Hill) and Bukit
Doa (Prayer Hill) in Pinaling; 5). Beach tourism, including: Tasik Ria Beach, Kalasei Beach, Hais
Beach, Kora- Kora Beach, and Tanjung Merah Beach in Minahasa, Molas Beach in Manado, Molosing
Beach and Labuan Uki in Bolaang Mongondow; 6). there are many Tourist Hot Springs scattered in
central Minahasa, such as in Tondano, Remboken, Passo, and Langowan; 7). Tirta tourism, as for
this type of tourism, it can be enjoyed in almost all rivers and lakes in the area, such as in Lake
Tondano and Tondano watershed as well as Lake Moat in Minahasa.

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The Process of Settling a Trade Agreement Dispute by the Indonesian National Arbitration
Board (Badan Arbitrasi Internasional Indonesia or BANI)
The issue of permanent dispute resolution is (Bintang,2000) one of the most important
aspect of business transactions at any time in Manado.Act No. 30 or 1999 concerning Arbitration
and Alternative Dispute Resolution is one of the laws governing the settlement of disputes or
differences of opinion between parties in a certain legal relationship that has entered into an
arbitration agreement which expressly states that all disputes or differences of opinion arising or
that may arise from the legal relationship will be resolved by way of arbitration or through an
alternative dispute resolution.
Philosophically, Act No. 30or1999 concerning Arbitration and Alternative Dispute
Resolution is stipulated to end the legal relationship of the parties that had entered into the
arbitration agreement so they can enter into further agreements. The sociological foundation
stipulated in Act No. 30or1999 concerning Arbitration and Alternative Dispute Resolution is due to
the number of disputes that occur between the parties that make an arbitration agreement
disputes through arbitration are no longer compatible with the development of the business world
and law in general.
The philosophical, juridical, and sociological foundations of the existence of Act No.
7or2012 concerning Social Conflict Management is found in these legal considerations.
Philosophically, the existence of Act No. 7 or 2012 concerning Social Conflict Management is an
effort to create an atmosphere that is safe, serene, orderly, peaceful, and prosperous, both
physically and mentally as a manifestation of every person’s right to religious, personal, family,
honor, dignity, and property. The sociological foundation stipulated in Act No. 7or2012
concerning Social Conflict Management is that the occurrence of conflicts andoror clashes between
community groups can lead to social conflicts which result in disruption of national stability and
hampered national development. The juridical basis stipulated in Act No. 7or2012 concerning
Social Conflict Management is due to the provisions of laws and regulations relating to handling
social conflict are still partial and comprehensive in accordance with the dynamics and legal needs
of the community.
Dispute settlement can be settles through the court system, alternative dispute resolution, and
through customary institutions. The method of resolving disputes regulated in the Civil Procedure
Code, which is namely through the court system, meanwhile the method of dispute resolution
regulated by Act No. 30or1999 concerning Arbitration and Alternative Dispute Resolution, which
is namely through alternative dispute resolution (ADR). There are five means to resolve disputes
through ADR, which include: consultation; negotiation; mediation; conciliation; or expert
judgement.
Consultation is a discussion conducted between parties without involving third parties in
resolving their dispute. Negotiation is a means for both parties to hold a two-way communication
that is designed to reach an agreement as a result of differences in views on things and against the
similarityorinequality of interests between them. Mediation is the participation of third parties in
the dispute resolution process, where these third parties act as advisors. Conciliation is an attempt
to bring together the desires of the disputing parties to reach an agreement and to resolve their
dispute. Expert judgement is a method of resolving disputes in which the parties designate a
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neutral expert to make the finding binding or not, or even make the material directed in a binding
manner.as a lack of information about the process of filing a complaint to the court, lack of access
to a judicial institution, or are deliberately not processed in court due to the estimate that the loss
would be greater than the profit (both in the material and psychological meaning).
Avoidance, which is the party that feels aggrieved, chooses to reduce relations with those
who had harmed them or to completely stop the relationship. Coercion, when one party imposes a
solution to another party. This is unilateral. These imposing actions or threats to use violence
generally reduce the possibility of peaceful settlement. Negotiation, namely the two parties try to
make mutual decisions. The solution to the problems faced by the two parties are agreed without
the interference of a third party. Both parties try to convince one another, therefore they make
their own rules and they do not solve them by starting from the rules that already exist. Mediation,
which is where a third party helps both parties to find an agreement to settle on. The third party
can be determined by both parties to the dispute, or appointed by someone who is authorized to
do so. Whether the mediator is chosen by both parties or appointed by an authorized personnel,
the two parties to the dispute must agree that the services of a mediator will be used in an effort
to find a solution. In small communities, it is possible for figures who act and mediators to also act
as arbitrators and judges. Arbitration, is where two parties to a dispute agree to request a third
party intermediary, an arbitrator, and from the beginning agree that they will accept the decision
of the arbitrator. Adjudication, is where a third party has the authority to interfere with the
problem solving, regardless of the desires of the disputing parties. The third party also has the
right to make a decision and enforce that decision which means that the decision is followed
through.
These seven methods can be simplified into three means of dispute resolution, namely customary,
ADR, and court. These include customary means which are just leaving it or lumping it, avoidance,
and force. These three methods are not found in laws and regulations. The means included using
ADR are negotiation, mediation, and arbitration.

4. Conclusion
Business developments in Manado are measured by the natural wealth of food crops,
plantations, farms, fisheries, forestry, mining, North Sulawesi energy, sea transportation, tourism,
post and giro, telecommunications.BANI's opportunities in Manado as a place for Parties to choose
Non-Litigation Dispute Settlement Institutions, not only through Litigation Institutions departing
from Manado North Sulawesi Gate by Land, Sea and Air connected with 13 Cities in Asia, 19 Cities
in Indonesia, 10 Airlines operating, and 3 International Airlines operating. Based on the above
facts, of course in the Contracts of the Parties it is very risky to have a Dispute Issue. This is, of
course, the opportunity for the existence of BANI to resolve the Non- Litigation Trade Dispute in
Manado.
Dispute settlement remains one very important aspect in business transactions in every

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time. BANI's scope of work is the settlement of disputes arising from agreements on trade,
industry, and financial matters (business contracts). Therefoer, it can be concluded that as seen in
the manuscripts issued by BANI, the arbiter's scope of work covers cases, namely corporate,
insurance, finance, patents, copyrights, aviation, telecommunications, space, cooperation, mining,
sea and air transportation, environment, fabrication, industry, trade, licensing, agency, intellectual
property rights, design, consulting, distribution, maritime, construction, shipping, and remote
sensing.

Acknowledgments

The authors wish to express their sincere gratitude to the publisher of TIJOSSW, who gave
permission and a great chance for the Authors to publish their writings. The next appreciation is
given to the TIJOSSW publisher reviewers who have spent more time making valuable corrections
dealing with technical writing styles or ideas about this writing.

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