11 Dec 2017
Mediation
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Mediation Agreement

The most important requirement to petition for BAPMI's Mediation for solving problem is a prior agreement between the parties that the problem will be resolved through BAPMI's Mediation. Without such agreement, the problem cannot be brought for BAPMI's Mediation. When requested by the parties, BAPMI's Management can facilitate the parties to enter into a Mediation agreement.

The Mediation agreement may be set out in:

  • one of the clauses of the agreement made by the parties before the problem arises (Mediation Clause);
  • a separate agreement entered into by the parties after the problem arises; or
  • a declaration by the parties before BAPMI's Arbitration proceeding.

Model Mediation Clause:
While it is very rare that the parties to an agreement set out Mediation clause in their principle agreement, when the parties intend to do so, BAPMI recommends the parties to refer to the clause below as an example:

Paragraph 1: Any dispute arising out of and/or in connection with this Agreement and/or performance of this Agreement, regarding either a breach or tort, including termination and/or validity of this Agreement, shall be first settled by the parties through deliberation and consensus between the parties. Paragraph 2: When the deliberation attempt, as referred to in paragraph (1), is failed, the parties agree to resolve the dispute through BAPMI's Mediation under BAPMI's Rules.

Paragraph 3: When the Mediation effort, as referred to in paragraph (2), is failed, the dispute shall be resolved and decided through BAPMI's Arbitration in Jakarta, at an Arbitral Tribunal consisting of three (3) Arbitrators, under BAPMI's Rules, and a final and binding Arbitration Award.

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