The Indonesian Board of Arbitration and Alternative Dispute Resolution of Construction Disputes (Badan Arbitrase Dan Alternatif Penyelesaian Sengketa Konstruksi Indonesia – “BADAPSKI”) - World Arbitration Reporter - Second Edition
BADAPSKI was established and launched on August 2014, with its arbitration rules issued in 2015 ("BADAPSKI Rules").
With recent growth of construction projects and businesses in Indonesia, as visible through rapid developments in public infrastructure and most notably in railings, ports, power, real estate & property and other public facilities – BADAPSKI is expected to become a specifically designed alternative dispute settlement forum for construction disputes.
As a brief background, the concept of “arbitration and alternative dispute resolution” in Indonesia was not specifically regulated until August 1999 when the government enacted the Law No. 30 of 1999 on Arbitration and Alternative Dispute Resolution ("Arbitration Law"). Prior to enactment of the Arbitration Law which establishes codified rules on arbitration and alternative dispute resolution, the concept had been recognised under different laws and regulations established during the Dutch colonial regime including, amongst others, Reglement of de Rectsvordeering, Het Herziene Indonesisch Reglement and Rectsreglement Buitengewesten.
Enactment of the Arbitration Law was expected to bring further legal certainty in the enforcement of arbitration awards in Indonesia (this is considering that Indonesia has been a party to the 1958 New York Convention since 1981), as well as guidance on how arbitration proceedings will be regulated in Indonesia. The Arbitration Law itself was modelled after the UNCITRAL Model Law with some specific changes.