NON LITIGATION PRACTICES

INTERNATIONAL CLASS
 LIFE IS FULL OF DISPUTES
Session 1
• Name a number of disputes that you have
encountered in your life.

• How do you resolve your disputes?

WHAT IS ‘DISPUTE RESOLUTION’?

Give your
opinions
 TWO MAJOR TYPES OF DISPUTE
RESOLUTION

Please mention
the two major
types of
dispute
resolution
based on the
pictures
TWO MAJOR TYPES OF DISPUTE RESOLUTION

• Adjudicative processes, such as litigation

or arbitration, in which a judge, jury or
arbitrator determines the outcome.

• Consensual processes (refer to as

Alternative Dispute Resolution/ADR), such
as mediation, conciliation, or negotiation,
in which the parties attempt to reach
agreement.
 ALTERNATIVE DISPUTE RESOLUTION (ADR)

• To what is
"alternative" dispute
resolution an
alternative? Usually,
to litigation -- but
more generally, it is
also an "alternative"
both to allowing a
dispute to drop and
to resorting to
violence.
 CLASSIFICATION OF ADR
ADR is generally classified into at least
three subtypes: negotiation, mediation,
and arbitration. (Sometimes a fourth
type, conciliation, is included as well, but
for present purposes it can be regarded
as a form of mediation.
 Review Lesson 1
• How many types of legal disputes do you
know? Please mention and give examples
• How many types of dispute resolutions do you
know? Please mention and give examples
• What is the most effective and efficient
dispute resolution for you? Give the sample of
dispute and the reason why you select the
dispute resolution mechanism
 The salient features of ADR
• In negotiation, participation is voluntary and there is no
third party who either facilitates the resolution process or
imposes a resolution.

• In mediation, participation is voluntary (in that even

though a court may mandate the process itself, the parties
are not required to reach a resolution), and there is a third
party, a mediator, who facilitates the resolution process
but does not impose a resolution on the parties.

• In arbitration, participation is ordinarily voluntary, and

there is a third party who both facilitates the resolution
process and imposes a resolution.
 Other types of ADR
• Conciliation - often used interchangeably with Mediation,
as a method of dispute settlement whereby parties clarify
issues and narrow differences through the aid of a neutral
facilitator.
• Fact-Finding - An investigation of a dispute by an impartial
third person who examines the issues and facts in the
case, and may issue a report and recommended
settlement.
• Med/Arb - Employs a neutral selected to serve as both
arbitrator and mediator in a dispute. It combines the
voluntary techniques of persuasion and discussion, as in
mediation, with an arbitrator's authority to issue a final
and binding decision, when necessary
 Other types of ADR
• Mini-Trial - A structured settlement process in
which senior executives of the companies
involved meet in the presence of an impartial
third person and, after hearing presentations
of the merits of each side of the dispute,
attempt to formulate a voluntary settlement.
• Summary Jury Trial - Summary presentations
by counsel in complex cases before a jury
impaneled to make findings which are
advisory, absent the agreement of the parties
otherwise.
SOME OF THE ADVANTAGES OF ADR

• SPEED. Despite the best efforts of our court

systems to improve processing time of civil
disputes, the burdens of criminal cases,
tight budgets, and other factors still create
delays of years to bring a case to court in
many jurisdictions. Appeals extend the time
required to reach a final result still further.
 SOME OF THE ADVANTAGES OF ADR
• CHOICE AND EXPERTISE OF IMPARTIAL NEUTRALS:
Parties who resolve their disputes through ADR enjoy the
assistance of neutrals who are already expert in the
subject matter of their disputes.
 SOME OF THE ADVANTAGES OF ADR

• INFORMALITY and FLEXIBILITY: Alternative dispute

resolution is conducted in a manner that is more business-
like than litigation. Each party tells its side of the story to
the arbitrator in an atmosphere that is less formal than a
court proceeding.
 SOME OF THE ADVANTAGES OF ADR
• PRIVACY: Arbitration,
Mediation and other
forms of ADR are not
open to public scrutiny
like disputes settled in
court. The hearings and
awards are kept private
and confidential, which
helps to preserve positive
working relationships.
SOME OF THE ADVANTAGES OF ADR
• ECONOMY Time saved is
money saved. ADR
processes are designed to
be faster, more
streamlined, and more
informal than litigation.
Many of the costly
procedures associated
with formal court
processes, such as filing
appeals and motions can
be eliminated.
 SOME OF THE ADVANTAGES OF ADR

• FINALITY: arbitration awards are final, binding, and legally

enforceable, subject only to limited review by the courts.
The court does not second guess the arbitrator's decision
as to the facts or the law. Of course, parties may also
agree in advance that awards will be advisory only.
 Activity Lesson 1
Form a pair (agree and disagree pairs) to discuss the
following matters:
• SPEED (FASTER)
• CHOICE AND EXPERTISE OF IMPARTIAL
NEUTRALS (NEUTRALITY)
• INFORMALITY and FLEXIBILITY
• PRIVACY
• ECONOMY (time saved & money saved)
• FINALITY
The Disadvantages of ADR (Assignment)

• Your Homework: ADR in different

countries and compare them with
Indonesia
• Sources: Internet & Books
• Individual Work
• Individual Presentation (Random
Selection)
 NEGOTIATION
Session 2

• What is negotiation?

• Give examples of negotiation

• Why do you need to negotiate?

The meaning of negotiation
• Negotiation is the
process whereby
interested parties resolve
disputes, agree upon
courses of action,
bargain for individual or
collective advantage,
and/or attempt to craft
outcomes which serve
their mutual interests.
Examples of negotiation
• Look at the picture, can
you figure out what the
parties are discussing?

• The existence of parties

who share an important
objective but have some
significant difference(s).
 The Approaches to Negotiation
• The advocate's approach:
A "successful" negotiation in the advocacy approach is when
the negotiator is able to obtain all or most of the outcomes
their party desires, but without driving the other party to
permanently break off negotiations.
• The win/win negotiator's approach:
Everybody Wins philosophy assures that all parties benefit
from the negotiation process which also yields more
successful outcomes than the adversarial “winner takes all”
approach.
 The Process of Negotiation
• Phase 1: Before the Negotiation:
Step 1: Preparing and Planning: In this step,
first you should determine what you must
have and what you are willing to give
(bargaining chips). Gather facts about the
other party, learn about the other party’s
negotiating style and anticipate other side's
position and prioritize issues.
 The Process of Negotiation
• Phase 2: During the Negotiation:
• Step 2: Setting the Tone: You should never speak first because the other
party might offer you more than you would have asked for.

• Step 3: Exploring Underlying Needs: It is also important to actively listen for

facts and reasons behind other party’s position and explore underlying needs
of the other party. If conflict exists, try to develop creative alternatives. If you
are in a difficult situation, don't say anything. Take time out. Remember, you
will not give anything away if you don't say anything.

• Step 4: Selecting, Refining, and Crafting an Agreement: It is a step in which

both parties present the starting proposal. They should listen for new ideas,
think creatively to handle conflict and gain power and create cooperative
environment.

• Step 5: Reviewing and Recapping the Agreement: This is the step in which
both parties formalize agreement in a written contract or letter of intent.
 The Process of Negotiation
• Phase 3: After the Negotiation:
• Step 6: Reviewing the Negotiation: Reviewing
the negotiation helps one to learn the lessons
on how to achieve a better outcome.
Therefore, one should take the time to review
each element and ask oneself, "what went
well?" and "what could be improved next
time".
STEP BY STEP OF NEGOTIATION PROCESS

1. Step 1: Preparing and Planning

2. Step 2: Setting the Tone
3. Step 3: Exploring Underlying Needs
4. Step 4: Selecting, Refining, and Crafting an
Agreement
5. Step 5: Reviewing and Recapping the
Agreement
6. Step 6: Reviewing the Negotiation
 Tactics of Negotiation
• There are many tactics used by skilled negotiators, including:
• Analyzing the negotiation or conflict management style of their counterpart
• Setting pre-conditions before the meeting
• Volunteering to keep the minutes of the meeting
• Presenting demands
• Declining to speak first
• Deadlines
• Good guy/bad guy
• Limited authority
• Caucusing
• Walking out
• Concession patterns
• High-ball/low-ball
• Intimidation
• Getting it in your hands
• Fait accompli (what's done is done)
• Take it or leave it
• Rejecting an offer.
 The Process of Negotiation (Practices)
Session 3
• Form a group of two (2 students in a group)
• Discuss with your partner a scenario that
you are going to present (eg. Selling cars,
textiles export-import)
• Work individually to determine the process
of shipping of goods, the cost and
promotion
• Conduct a role play on negotiation
(negotiate with your partner your intents)
The Process of Negotiation (Practices)
Session 3
• Make the list:
-Matters are negotiated.
-Approaches used in
negotiation.
-Tactics used in
negotiation.
• Inform the class:
-How to begin your
negotiation
-Matters are successfully
negotiated.
 Simulation 1
• Salmon received a lucrative offer from Gerry, a business acquaintance. The
offer could have expanded Salmon’s business. Unbeknownst to Gerry,
Salmon’s business, which was the reason for their acquaintance, had a
secret partner, Meinhard. If Gerry knew that Salmon operated in two
capacities, as an individual and as a member of a partnership,then Gerry
may have specified which of the two he selected as the recipient of his
offer. Meinhard, the invisible partner, claimed the offer should be treated
as made to the partnership. How do you solve this case by Negotiations?
• Task:
a. Create a group consist of 4 member of each to analyze the case
b. Decides the pairs to perform the simulation. The once is Gery and the others is Salmon
and Meinhard
c. Determined the Tactics to reach the goal
d. Preparation and Discussion: 20 Minutes
 SIMULATION 2
PT. Badai melakukan kontrak bisnis dengan
Bersinar Pte Ltd. Di dalam perjalanan bisnis
tersebut bermasalah dikarenakan PT Badai
tidak dapat melakukan pengiriman barang ke
Negara Taiwan sebagaimana permintaan
Bersinar Pte Ltd.
Buatlah forum negosiasi untuk penyelesaian
masalah ini.
 Students’ Presentation On Negotiation
Materials (session 3)
• Each student has to
provide his/her own
summary materials
(slides) on negotiation.

• Maximum slides: 5 (five).

• Each student has to

present the slides before
the class.
 POINT OF TALKING (STUDENTS’
PRESENTATION)
• What is dispute?
• The two main types of dispute resolution:
Litigation and Non Litigation (ADR & Arbitration)
• The advantages and disadvantages of litigation
• The advantages and disadvantages of non litigation
• What is ADR?
• Types of ADR
• What is negotiation?
• Steps of negotiation process
• Tactics of negotiation
INTRODUCTION TO MEDIATION
(Session 4)

WHAT IS MEDIATION?
 The Meaning of Mediation
• Mediation in legal terminology, comprises an act of
bringing two states, sides or parties in a dispute closer
together toward agreement through alternative dispute
resolution, a dialogue in which a (generally) neutral third
party, the mediator, using appropriate techniques, assists
two or more parties to help them negotiate an agreement,
with concrete effects, on a matter of common interest.

• More generally speaking, the term "mediation" covers any

activity in which an impartial third party (often a
professional) facilitates an agreement on any matter in the
common interest of the parties involved.
The Types of Disputes
• Family:
• Prenuptial agreements
• Financial or budget disagreements
• Separation
• Divorce
• Financial distribution and spousal
support (alimony)
• Parenting plans (child custody and
visitation)
• Eldercare issues
• Family businesses
• Adult sibling conflicts
• Disputes between parents and
adult children
• Estate disputes
• Medical ethics and end-of-life
issues
 The Types of Disputes
• Workplace:
Wrongful termination
Discrimination
Harassment
Grievances
Labor management

• Public disputes:
Environmental
Land use
The Types of Disputes
• Disputes involving the following
issues:
Landlord-tenant
Homeowners' associations
Builders/contractors/realtors/homeow
ners
Contracts of any kind
Medical malpractice
Personal injury
Partnerships
Non-profit organizations
Faith communities

Other:
Youth (school conflicts; peer
mediation);
Violence prevention
Victim-Offender mediation
 The Aspects of Mediation
• a controversy, dispute or difference of positions between
people, or a need for decision-making or problem-
solving;
• decision-making remaining with the parties rather than
imposed by a third party;
• the willingness of the parties to negotiate a positive
solution to their problem, and to accept a discussion
about respective interests and objectives;
• the intent to achieve a positive result through the
facilitative help of an independent, neutral third person.
 The Types of Mediation
• Online Mediation
• Mediation in business and in commerce
• Community Mediation
• Mediation with arbitration
• Mediation in politics and in diplomacy

EXPLAIN THE TYPES OF MEDIATION WITH

EXAMPLES (WORK IN PAIRS)
 THE PROCESS OF MEDIATION
Generally, the process consists of the following stages;

• an introduction by the mediator that includes establishing

ground rules suggested by the mediators and the parties;
• the parties' 'telling their stories' in an uninterrupted manner;
• the mediator's asking questions to clarify the issues;
• the mediator's discovery of the parties' underlying
interests/concerns related to the issues;
• the parties' generation of options that may resolve the dispute;
• the reality-testing of the options, leading to one option that
best resolves the issues for all parties; and
• memorialization of the resulting agreement in writing.
INTRODUCTION TO CONCILIATION
Session 5

WHAT IS CONCILIATION?

GIVE YOUR OWN IDEAS

 The Meaning of Conciliation

Conciliation is an alternative dispute

resolution process whereby the parties to a
dispute (including future interest disputes)
agree to utilize the services of a conciliator,
who then meets with the parties separately in
an attempt to resolve their differences.
The Difference between Conciliation and
Arbitration

Conciliation differs from arbitration in that the

conciliation process, in and of itself, has no
legal standing, and the conciliator usually has
no authority to seek evidence or call
witnesses, usually writes no decision, and
makes no award.
 The Difference between Conciliation and
Mediation

• Conciliation differs from mediation in that the

main goal is to conciliate, most of the time by
seeking concessions. In mediation, the
mediator tries to guide the discussion in a way
that optimizes parties needs, takes feelings
into account and reframes representations.
 The Process of Conciliation
• The parties seldom, if ever, actually face each other across
the table in the presence of the conciliator.
• The practice of meeting with the parties separately as
"caucusing" and would regard conciliation as a specific
type or form of mediation practice -- "shuttle diplomacy" -
- that relies exclusively on caucusing.
• If the conciliator is successful in negotiating an
understanding between the parties, said understanding is
almost always committed to writing (usually with the
assistance of legal counsel) and signed by the parties, at
which time it becomes a legally binding contract and falls
under contract law.
 The Process of Conciliation
• A conciliator assists each of the parties to independently
develop a list of all of their objectives (the outcomes
which they desire to obtain from the conciliation). The
conciliator then has each of the parties separately
prioritize their own list from most to least important. She
then goes back and forth between the parties and
encourages them to "give" on the objectives one at a
time, starting with the least important and working
toward the most important for each party in turn. The
parties rarely place the same priorities on all objectives,
and usually have some objectives which are not on the list
compiled by parties on the other side. Thus the conciliator
can quickly build a string of successes and help the parties
create an atmosphere of trust which the conciliator can
continue to develop.
 Hypothetical Case on Conciliation

• Make your own

hypothetical
case.
• Work in pairs.
• Present your case
before the class
 Session 6
• Presentation on negotiation, mediation and
conciliation
• Individual
• Compare to ADR of other countries
INTRODUCTION TO ARBITRATION
Session 7

WHAT IS ARBITRATION?
 The Meaning of Arbitration
• Arbitration is a final and binding dispute
resolution process. In practice arbitration is
generally used as a substitute for judicial
systems, particularly when the judicial
processes are viewed as too slow, expensive or
biased. Arbitration is also used by
communities which lack formal law, as a
substitute for formal law.
ARBITRATION AUTHORITY

Who gives arbitrators the

authority to settle disputes?
 ARBITRATORS
• Who are arbitrators?
• What is their rights and duties?
• What are the requirements of arbitrators?
• Compare the requirements of arbitrators
according to Indonesian Law (Law No.30 of
1999 and other countries’ arbitration law)

INDIVIDUAL ASSIGNMENT
(TO BE COLLECTED ON THE DAY OF FINAL
TEST)
 PARTIES TO ARBITRATION
• The parties: the legal
subjects, whether in civil
or public law.
• Claimant: the party
submitting the request for
resolution of the dispute
by arbitration.
• Respondent: the party
opposing the claimant in
the resolution of the
dispute by arbitration
 DOMESTIC ARBITRATION
Session 8

• What is domestic arbitration?

• Give examples of arbitration proceedings

that can be classified as domestic
arbitration
Sources of Domestic Arbitration

• What is the meaning of sources?

• Sources of Domestic Arbitration:

Law No. 30 of 1999

Is Law No. 30 of 1999 a complete law

to govern domestic arbitration?
Proceedings (Domestic Arbitration)
• Law No. 30 of 1999: Articles 27 – 51

• Are there differences between arbitration and

court proceedings?

• What should parties prepare and provide for

the proceedings?

• What should arbitrators prepare and do in the

proceedings?
Recognition and Enforcement of Domestic
Arbitral Awards

• Law No.30 of 1999 : Articles 59 – 64

• Discuss with your partner each provision

(Articles 59 -64)
 Cases on Domestic Arbitration

• The winning party is going to enforce the

BANI’s award.

• What steps should the party do?

• Can the losing party impede the

enforcement of the award?
 PROCESS OF DOMESTIC ARBITRATION
Session 9

1. Forming an arbitration group

2. Setting an arbitration scenario

3. Settling business disputes through an arbitral

tribunal (role play)

 International Arbitration
Session 10
• What is international arbitration?

• Give examples of arbitration proceedings that

can be classified as international arbitration
 The Meaning of International Arbitration
The UNCITRAL Model Law on International Commercial Arbitration
(Article 1(3))

An arbitration is international if:

• (a) the parties to an arbitration agreement have, at the time of the conclusion
of that agreement, their places of business in different States; or
• (b) one of the following places is situated outside the State in which the
parties have their places of business:
• (i) the place of arbitration if determined in, or pursuant to, the arbitration
agreement;
• (ii) any place where a substantial part of the obligations of the commercial
relationship is to be performed or the place with which the subject-matter of
the dispute is most closely connected; or
• (c) the parties have expressly agreed that the subject-matter of the
arbitration agreement relates to more than one country.
• (4) For the purposes of paragraph (3) of this article:
• (a) if a party has more than one place of business, the place of business is
that which has the closest relationship to the arbitration agreement;
• (b) if a party does not have a place of business, reference is to be made to his
habitual residence.
 Sources of International Arbitration

Sources of International Arbitration:

• Law No. 30 of 1999 (it does not adopt the UNCITRAL Model Law)
• International treaties ratified by Indonesia:
• Law No. 5 of 1968 (the ICSID Convention)
• Presidential Decree No.34 of 1981 (the New York Convention)
• Supreme Court Regulation No.1 of 1990
• The UNCITRAL Arbitration Rules
• Jurisprudence (Judicial Decisions)
• Doctrines (Juristic Works)
• International Custom and General Principles of Law
• Arbitration Agreement
Proceedings (InternationalArbitration)

• Are there differences between

domestic and international arbitral
proceedings?
Recognition and Enforcement of International
Arbitral Awards

• Law No.30 of 1999 : Articles 65 - 69

• Discuss with your partner each provision

(Articles 65 - 69)
FIND OUT INTERNATIONAL ARBITRATION CASES INVOLVING
INDONESIAN PARTIES

• Bankers Trust Company & Bankers Trusts International Plc

vs PT.Mayora Indah, Tbk: Decision No.
001/Pdt/Arb.Int/1999/PN.JKT.PST vide
No.002/Pdt/Arb.Int/1999/PN.JKT.PST. Vide
No.02/Pdt.P/2000/PN.JKT/PST; Decision No.02
K/Ex’r/Arb.Int/Pdt/2000.
• ED & F.Man (Sugar) Ltd vs Yani Haryanto: Decision
No.499/Pdt/G/VI/1988/PN.JKT.PST; Decision
No.486/Pdt/1989/PT.DKI; Decision: No.1205 K/Pdt/1990.
• PERTAMINA & PT.PLN (Persero) vs Karaha Bodas Company,
LLC: Decision: No.86/PDT.G/2002/PN.JKT.PST.
 PROCESS OFARBITRATION
Session 11

1. Forming an arbitration group

2. Setting an arbitration scenario

3. Settling business disputes through an arbitral

tribunal (role play)

STUDENTS’ PRESENTATION ON ARBITRATION
(Session 12)

• Each student has to provide

his/her own summary
materials (slides) on arbitration
(domestic or international
arbitration)

• Maximum slides: 5 (five).

• Each student has to present the

slides before the class.
Session 13 (Review on Domestic Arbitration)

ANALYSIS OF LAW NO.30 OF 1999

(DOMESTIC ARBITRATION)
 Session 14 (Review on International
Arbitration)

LAW NO.30 OF 1999

(INTERNATIONAL ARBITRATION)
 POINTS OF PRESENTATION
• How many types of arbitration?
• How many types of arbitration agreements?
• Explain the entire process of arbitration?
• What is the difference between the
enforcement of domestic and international
arbitral awards?
• What is the difference between the “refusal”
and the “cancellation” of arbitral awards?
• Explain the important aspects of Law No.30 of
1999
THANK YOU FOR YOUR PARTICIPATION
 MIDDLE SEMESTER EXAM
• Adam and Marie enter into a leasing contract of an apartment. The
housing agent promises to vacant the apartment two days prior to
the arrival of Adam and Marie from overseas. When they arrive at
the apartment, they suddenly realize that the apartment has still
been occupied by a German couple who rents the apartment for a
short holiday. The couple extends the rent because one of them
suddenly falls sick and needs to stay on bed for a few days.
• Questions:
1. Should the dispute settle through litigation or non litigation? What
are the advantages and disadvantages of both dispute resolutions
for the stated case?
2. Can Adam and Marie negotiate the dispute with the German
Couples? How to negotiate it?
3. If Adam and Marie wish to use mediation to settle the dispute what
they should do?
4. What should you do to settle the dispute if you are appointed as the
mediator?
 Answers of Mid Sem Exam
Question 1
• It is highly recommended that Adam and Marie settle
their dispute through non litigation because the case is
simple, not to complicated. Not too many parties get
involved in the case. The parties may meet each other
directly. Amount of money involved is small.

• Advantages and disadvantage of ADR can be obtained

from your handout.
• Advantages and disadvantages of Litigation can be
obtained from your notes
 Answers of Mid Sem Exam
Question 2

• Adam and Marie should contact the housing agent first and discuss
the issues with the agent. They should do the negotiation with the
housing agent, rather than the German Couple. If the German couple
wish to meet Adam and Marie, the agent should be there as well.

• Provide examples of each steps

1. Step 1: Preparing and Planning
2. Step 2: Setting the Tone
3. Step 3: Exploring Underlying Needs
4. Step 4: Selecting, Refining, and Crafting an Agreement
5. Step 5: Reviewing and Recapping the Agreement
6. Step 6: Reviewing the Negotiation
 Answers of Mid Sem Exam
Question 3
• Select the mediator from the ADR institution
or the expert of leasing issues.
• Inform the mediator their problems.
• Ask the mediator about the payment, time of
settling the dispute, rules, etc.
• Ask the mediator what documents that they
have to provide
• Ask the mediator how to enforce the decision
of mediation, legal consequences, etc.
 The Answers of Mid Sem Exam
Question 4

Elaborate the process of mediation below and propose best solutions for
both parties

• an introduction by the mediator that includes establishing ground

rules suggested by the mediators and the parties;
• the parties' 'telling their stories' in an uninterrupted manner;
• the mediator's asking questions to clarify the issues;
• the mediator's discovery of the parties' underlying
interests/concerns related to the issues;
• the parties' generation of options that may resolve the dispute;
• the reality-testing of the options, leading to one option that best
resolves the issues for all parties; and
• memorialization of the resulting agreement in writing.
 FINAL SEMESTER EXAM
Critical and Analytical Questions
• Law No.30 of 1999 regarding Alternative Dispute Resolution
and Arbitration may not be a complete regime to govern
ADR and Arbitration. Yet, this Legislation has been used to
regulate ADR and Arbitration in Indonesia.

1. Explain and criticize the structure of Law No.30 of 1999.

(15%)
2. Does Law No.30 of 1999 regulate “international arbitration”
or simply provide the methods of recognizing and enforcing
“international arbitral awards”? (15%)
 FINAL SEMESTER EXAM
Hypothetical Case
• PT.Winzip (an Indonesian company in Jakarta) entered into a contract with
PT.Zigzag (a Singaporean Company in Sidney). Both parties agree that any
differences or disputes arising from the contract will be settled by ACICA
(an Australian Arbitral Institution). The parties also agree to choose the
Australian international legislation (International Arbitration Act 1974 (Cth).
In December 1995, PT.Winzip fails to perform its obligation to ship 10 tons
of sugar ordered by PT.Zigzag. PT.Zigzag wins the case and intends to seize
the assets of PT.Winzip in the Commonwealth Bank in Sydney and Jakarta.
1. Please mention the process of arbitration that the two parties have to
follow (the arbitral proceedings).
2. Is it possible for Pengadilan Negeri Jakarta Pusat to cancel the award on the
ground that Kepres No.XX of 1990 prohibits the export of sugar by private
companies?

Each answer may not exceed 200 words

 MAKE-UP FINAL SEMESTER EXAM
Critical and Analytical Questions
• Law No.30 of 1999 regarding Alternative Dispute
Resolution and Arbitration may not be a complete
regime to govern ADR and Arbitration. Yet, this
Legislation has been used to regulate ADR and
Arbitration in Indonesia.

1. Explain the strengths and the weaknesses of Law No.30

of 1999. (15%)
2. Should Indonesia adopt the UNCITRAL Model Law or
should Law No.30 of 1999 be revised keep up with the
trend in arbitration today? If you propose to revise Law
No.30 of 1999, which provisions need to be revised?
(15%)
 MAKE-UP FINAL SEMESTER EXAM
Hypothetical Case
• PT.Zenith (an American company in Jakarta) entered into a contract with
PT.Xepan (a Korean Company in Sidney). Both parties agree that any
differences or disputes arising from the contract will be settled by ACICA
(an Australian Arbitral Institution). The parties also agree to choose the
Australian international legislation (International Arbitration Act 1974 (Cth).
In December 1995, PT.Xepan fails to perform its obligation to ship 10 tons
of flour ordered by PT.Zenith. PT.Zenith wins the case and intends to seize
the assets of PT.Xepan in the Commonwealth Bank in Sydney and Jakarta.

1. Please mention the process of enforcing the arbitral award rendered by

ACICA in Jakarta (20%)
2. What is the category (the type) of the award rendered by ACICA when the
winning party registers the award at the Indonesian court and the
Australian court for enforcement? (25%)
3. What possible actions could be taken by the losing party to impede the
enforcement of the award in Indonesia? (25%)