Indonesia: The Risks Of Enforcing Foreign Awards

Indonesia The End of Bilateral Investment Treaties

Baker McKenzie review the arbitration enforcement landscape in Indonesia, concluding that:

“…the Arbitration Law provides more limited reasons to challenge foreign awards than those in the New York Convention. The Arbitration Law only adopts the reciprocity and commercial reservations and the public policy exception in article V (2) of the convention. It is also not legally possible to set aside foreign awards in Indonesia. Nevertheless, there is still unpredictability in enforcing foreign awards in Indonesia. The central issue is judicial interpretation of public policy. Although the Arbitration Law is almost 15 years old, there is no clarity on the definition of public policy. In the absence of clear judicial guidelines, it would not be surprising if parties can introduce new grounds under the pretext of public policy to challenge foreign awards in Indonesia.”

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About Phillip Rompotis

Phillip practices as a barrister and arbitrator in Hong Kong. He has over 25 years’ litigation and arbitration experience in commercial disputes relating to construction & engineering, financial services, joint venture & shareholders agreements, technology, trusts, property and landlord & tenant. He is a Fellow of the Chartered Institute of Arbitrators, the Singapore Institute of Arbitrators, the Malaysian Institute of Arbitrators, and a member of various lists/panels of arbitrators.

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