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    Arbitration & Dispute

    Drafting Arbitration Clauses for Indonesia-Related Contracts: Five Practical Tips

    A well-drafted arbitration clause can save years of enforcement pain. Practical drafting tips for Indonesia-linked contracts, including seat, language, and interim relief.

    Cross-border contracts touching Indonesia frequently rely on institutional arbitration (BANI, SIAC, HKIAC) instead of Indonesian courts. A poorly drafted arbitration clause, however, can create years of enforcement risk down the line.

    Five practical drafting tips

    1. Choose the seat deliberately. The seat determines curial law and the courts supervising the arbitration — not just the venue.
    2. Specify the language. Absent an express choice, Indonesian counterparties may later assert Bahasa Indonesia as the default under Law No. 24 of 2009.
    3. Address interim measures. Emergency arbitrator provisions matter where Indonesian court injunctions may be needed to freeze assets.
    4. Confirm New York Convention exposure. Indonesia is a party but recognition requires an exequatur from the Central Jakarta District Court.
    5. Bahasa Indonesia parallel version. Contracts signed with Indonesian parties should be executed in a bilingual version to comply with Law No. 24/2009.

    Our Dispute Resolution team advises on arbitration clause architecture at the contract stage and represents clients in institutional proceedings.