21 Oct 2017
Arbitration
ABOUT BAPMI | BINDING OPINION | MEDIATION | ADJUDICATION | ARBITRATION | MEDIATOR/ADJUDICATOR/ARBITRATOR | RULES | EVENTS
Introduction
Registration of Petition for Arbitration
Arbitration Agreement
Appointment of Arbitrator
Stages of Arbitration Proceedings
Arbitration Award
Enforceability of Arbitration Award
Arbitration Fees
Process

 

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Introduction

Definition of Arbitration:
The definition of "Arbitration" is set forth in Law Number 30 of 1999, in Article 1 item 1. However, in practice, Arbitration is defined as a dispute resolution method by giving authority to a neutral and independent third party – so-called Arbitrator - to examine and try a case at the first and final instances, and the decision shall be final and binding on the parties, cannot be petitioned for appeal, cassation and even reconsideration.

Based on the definition, it can be said that BAPMI's Arbitration is substantially similar to Court, and Arbitrators in an Arbitration process are similar to judges in a litigation process, with the following differences:

  1. Arbitration is a choice and agreement of the disputing parties;
  2. the Arbitration process can be proceeded after the petition of the disputing parties to BAPMI;
  3. the parties are entitled to determine whether they use one (Sole Arbitrator) or more Arbitrator (Arbitral Tribunal);
  4. the parties are free to determine the place of Arbitration;
  5. the parties are entitled to choose Arbitrators;
  6. Arbitrators are selected based on their expertise;
  7. proceedings are conducted according to BAPMI's Rules;
  8. Arbitration proceedings are closed to the public;
  9. Arbitration Award recognizes no precedent or jurisprudence;
  10. Arbitrators must pass an award on the basis of fairness and justice (ex aequo et bono), not solely on legal provisions;
  11. Arbitration Award is non-appealable;
  12. Arbitration Award is not constrained by limits of jurisdiction of state law.

Reasons for choosing BAPMI's Arbitration:
There are several reasons why the disputing parties choose BAPMI Arbitration to resolve the dispute:

  1. the disputing parties can no longer continue the negotiations;
  2. the disputing parties requires a settlement method with right-based procedure/ approach;
  3. the disputing parties requires a final and binding decision, but they do not want to take litigation because it will take a long time and huge costs;
  4. the disputing parties want an easier, faster and more efficient method;
  5. the disputing parties want to get a guarantee that the persons who will make a decision on the dispute (Arbitrators) really understand Capital Market and have expertise in Arbitration practices;
  6. the disputing parties want to resolve the dispute through a forum that is closed to the public;
  7. the disputing parties requires clean procedural practices;
  8. the disputing parties requires an award that is enforceable beyond limits of state law jurisdictions.
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