Cross-border contracts touching Indonesia frequently rely on institutional arbitration (BANI, SIAC, HKIAC) instead of Indonesian courts. A poorly drafted arbitration clause, however, can create years of enforcement risk down the line.
Five practical drafting tips
- Choose the seat deliberately. The seat determines curial law and the courts supervising the arbitration — not just the venue.
- Specify the language. Absent an express choice, Indonesian counterparties may later assert Bahasa Indonesia as the default under Law No. 24 of 2009.
- Address interim measures. Emergency arbitrator provisions matter where Indonesian court injunctions may be needed to freeze assets.
- Confirm New York Convention exposure. Indonesia is a party but recognition requires an exequatur from the Central Jakarta District Court.
- Bahasa Indonesia parallel version. Contracts signed with Indonesian parties should be executed in a bilingual version to comply with Law No. 24/2009.
Our Dispute Resolution team advises on arbitration clause architecture at the contract stage and represents clients in institutional proceedings.