Supreme Court Explains Definition of International Arbitration Awards Requirements
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Justicia Judge of the Supreme Court’s Legal and Public Relations Bureau Agung Dwi Rezki Sri Astarini as a related party delivering his statement during a continued hearing on the judicial review of Law No. 30 of 1999 on Arbitration and Dispute Settlement Alternatives, Monday (09/12) at the Courtroom. Photo by MKRI/Ifa.


Jakarta (MKRI) – Ideally, the definition in the general provision can provide clear and explicit information as intended by the principle of clarity in law formation. Thus, the word “deemed” in the provision of the Arbitration and Dispute Settlement Alternatives law is uncommon to use in the general provision of a law.

That was the statement given by Justicia Judge of the Supreme Court’s Legal and Public Relations Bureau, Dwi Rezki Astarini, during the continued judicial review hearing of Article 1 point 9 of Law No. 30 of 1999 on Arbitration and Dispute Settlement Alternatives (AAPS Law). The continued hearing of the case filed by Togi M. Pangaribuan was held in the Plenary Courtroom on Monday, December 9, 2024. The seventh hearing of Case No. 100/PUU-XXII/2024 was to hear testimony from a related party, namely Justicia, Judge of the Supreme Court’s Legal and Public Relations Bureau.

Dwi further explained that international arbitration awards are decisions made by arbitration institutions or individual arbitrators outside the legal territory of the Republic of Indonesia, or arbitrators' decisions which, based on Indonesian law, are deemed international arbitration awards. Based on this definition, AAPS Law provides two requirements on the definition of international arbitration, namely decisions made by arbitration institutions outside the legal territory of the Republic of Indonesia or decisions of arbitration institutions which, according to the Republic of Indonesia’s law, are deemed as international arbitration awards.

“That on the first definition, the Supreme Court considers the definition of the norm has provided a clear regulation, and there is no multi-interpretation. On the second requirement, the international arbitration awards, which, according to the Republic of Indonesia’s law, are deemed international arbitration awards, the Supreme Court considers that the phrase “deemed” in the norm opens broad interpretation possibilities and potentially causes multiple interpretation and legal uncertainty. On the body or elucidation of the AAPS Law, it is not regulated further on the meaning of the phrase “deemed as international arbitration awards.” The definition of "deemed as national arbitration awards” is also not found in other laws and regulations,” Dwi explained in the Plenary Hearing led by Chief Justice Suhartoyo and other justices.

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At the preliminary hearing on Wednesday, August 7, the Petitioner argued that Article 1 point (9) of the AAPS Law, especially the phrase “which according to the provisions of the law of the Republic of Indonesia is considered an international arbitration award” is contrary to Article 28D paragraph (1) of the 1945 Constitution. He experienced actual and specific constitutional losses in several aspects, including in terms of his professions as a lecturer, where he has an obligation to teach arbitration law in theory and practice to students accurately, and as an advocate, where he is obliged to provide legal services in the form of litigation services and advice to clients.

The legal uncertainty in the AAPS Law has hindered the Petitioner from carrying out both professions. This is because it mixes up narrow and broad territorial concepts, so the Petitioner has difficulty determining which ones are classified as national arbitration awards and international arbitration awards based on Article 1 paragraph (9) of the AAPS Law.

Author: Sri Pujianti
Editor: Lulu Anjarsari P.
PR: Fauzan Febriyan
Translators : Rizky Kurnia Chaesario/Yuniar Widiastuti

Disclaimer: The original version of the news is in Indonesian. In case of any differences between the English and the Indonesian versions, the Indonesian version will prevail.


Monday, December 09, 2024 | 16:56 WIB 38