Originally from Arbitration in Asia

from ELUCIDATION ON LAW NO 30/199 CONCERNING ARBITRATION AND DISPUTE SETTLEMENT ALTERNATIVE

GENERAL

The exercise of judicial power is entrusted to judicial institutions by referring to Law No. 14/ 1970 concerning the principal provisions on judicial power. The matter constitutes the principal and general frame laying down the basis and principles of judicature and reference to  public, religious, military  and  public  administration  courts  respectively  regulated  in separate laws.

Elucidation on Article 3 paragraph (1) of Law No. 14/ 1970 states, among others, that the out-of-court settlement of cases on the basis of reconciliation or arbitration is still allowed, but an arbitration decision only has the executorial power after securing a licence or order to be executed (execuitoir) from the court.

The bases for arbitration examination which have so far been used in Indonesia are Article 615 up to Article 651 of the Regulation Civil Proceedings (Reglement op de Rechtvordering, Statute Book of 1847 No. 52), Article 377 of the Renewed Regulation of Indonesia (Het Herziene Indonesisch Reglement, Statute Book of 1941 No. 44) and Article 705 of the Regulation on No-Jave/ Madura Proceedings (Rechstreglement Buitengwesten, Statute Book of 1927 No. 227).