Arbitration Submission Agreement Template for Indonesia

When you're facing a commercial dispute in Indonesia, an Arbitration Submission Agreement provides a structured pathway to resolve your matter outside the traditional court system. This specialized legal document allows parties to submit an existing dispute to arbitration, offering greater privacy, flexibility, and often faster resolution than conventional litigation.

When do you need this document?

You'll need an Arbitration Submission Agreement when a commercial dispute has already emerged and all parties agree to pursue arbitration instead of court proceedings. This commonly occurs in complex business relationships involving Indonesian companies, foreign investors, joint venture partners, or construction projects where maintaining business relationships is crucial. The agreement is particularly valuable for disputes involving technical expertise, international elements, or confidential commercial information that parties prefer to keep private. Unlike arbitration clauses in original contracts, this agreement addresses specific existing disputes that have already materialized.

Key legal considerations

Your agreement must clearly identify all parties and provide detailed descriptions of the specific dispute being submitted to arbitration. The document should explicitly state that all parties waive their right to pursue the matter in Indonesian courts, creating a binding commitment to the arbitration process. You'll need to specify the arbitration rules that will govern proceedings, whether institutional rules like those of the Indonesian Arbitration Board (BANI) or ad hoc procedures. The agreement should address arbitrator selection methods, the seat of arbitration, applicable substantive law, and language of proceedings. Consider including provisions for emergency arbitrator procedures, interim measures, and confidentiality obligations to protect sensitive commercial information throughout the process.

Legal requirements in Indonesia

Under Indonesian Law No. 30 of 1999 on Arbitration and Alternative Dispute Resolution, your agreement must be in writing and signed by all parties to be legally enforceable. The law requires that parties have legal capacity to enter into arbitration agreements, which means proper corporate authorization for company representatives under Law No. 40 of 2007 on Limited Liability Companies. Indonesian courts generally respect arbitration agreements and will decline jurisdiction when valid arbitration agreements exist. Your agreement must comply with Indonesian Civil Code provisions regarding contract validity, including proper consent, lawful cause, and legal capacity. The resulting arbitral award will be enforceable in Indonesia and internationally under the New York Convention, provided procedural requirements are met. Ensure your agreement doesn't cover disputes that Indonesian law considers non-arbitrable, such as certain family law or criminal matters.