Arbitration

A Swift, Efficient & Confidential Solution for Companies to Resolve Civil & Business Disputes

Concept of Dispute Resolution Through Arbitration Lawyer

Arbitration is a process for resolving civil or business disputes outside of general courts.

Arbitration is conducted by independent, authorized, professional arbitrators with expertise in the disputed field for over 15 years.

This panel of judges is called Arbitrators.

The disputing parties are granted the right to appoint Arbitrators. Subsequently, the two appointed Arbitrators will determine a third arbitrator as the Presiding Arbitrator. All appointed Arbitrators are independent & cannot be influenced by either disputing party.

Both parties involved in the dispute grant authority to the Arbitrators to determine a fair and binding solution for them.

Arbitration is conducted privately, unlike public courts, which are open to the public.

Dispute resolution through arbitration is based on an agreement containing an arbitration clause or a separate arbitration agreement. The arbitration dispute resolution process refers to Law Number 30 of 1999 concerning Arbitration & Alternative Dispute Resolution.

Arbitration is more time-efficient, making it relatively faster & more effective. Arbitration has become a popular choice for dispute resolution among professionals.

Conditions for Choosing Arbitration Over General Courts to Resolve Disputes

Arbitration is selected as a dispute resolution method due to several conditions, including the desire to:

Maintain confidentiality in dispute resolution.
Avoid time-consuming and physically and mentally draining court proceedings.
Utilize experts in specific fields as the deciding parties in disputes.
Preserve good business relationships between disputing parties.

Additionally, the most crucial factor in choosing Arbitration is trust in the arbitration process & the quality of the arbitration decisions, which are final & binding for all parties involved.

Advantages of Dispute Resolution Through Arbitration

Confidentiality

Arbitration is conducted privately & confidentially, providing a secure environment for business owners & ensuring their privacy is protected.

Professional Arbitrators

Arbitrators who resolve disputes through arbitration are experienced professionals with over 15 years of expertise in their fields.

Quality Decisions

The quality of the decisions rendered by Arbitrators is generally superior to those from general courts due to their specialized expertise.

Preferred by Multinational & Foreign Direct Investment Companies

Arbitration is favored by multinational corporations & foreign companies engaging in direct investment, as they trust the effectiveness & speed of the arbitration process over general courts.

Proven Effective in Certain Industries

In specific industries, such as shipping & logistics, dispute resolution through arbitration has been proven to be an effective choice for resolving various cases.

Right to Appoint Arbitrators

Each disputing party has the right to appoint an Arbitrator. The two appointed Arbitrators then choose a third as the Presiding Arbitrator. The Presiding Arbitrator's decision is independent & not influenced by either disputing party.

Final & Binding Arbitration Decisions

Arbitration decisions are final and binding, unlike general courts where cases can be further appealed, filed for cassation, or reviewed. The Indonesian National Arbitration Board (BANI) regulations also mandate the prompt enforcement of arbitration decisions.

Choice of Law & Choice of Forum

Choice of law and choice of forum are two essential concepts in arbitration.

Choice of law refers to the selection of the legal system that will be used to resolve disputes. In international arbitration, parties can choose the law that will govern their dispute, even if it differs from the law of the country where the arbitration is taking place.

Choice of forum pertains to the selection of the location or venue where the dispute will be resolved, and the arbitration procedures from the chosen forum will be used. In this case, parties can choose a forum available in the country where the arbitration will be conducted.

For example, suppose there is an Indonesian company collaborating with a Singaporean company. In their agreement, they decide that in the event of a dispute, the choice of law will be Indonesian law, not Singaporean law. Furthermore, they decide that if a dispute arises, the choice of forum will be arbitration through BANI (Indonesian National Arbitration Board) rather than the District Court.

These choices can affect the cost & time required to resolve disputes.

Timeframe for Dispute Resolution Through Arbitration

The timeframe for resolving disputes via Arbitration generally hinges on the intricacy of the dispute & the number of documents the Arbitrator must analyze; however, the regulations stipulate a maximum limit of 180 days.

The Role of CHP Law Firm as an Arbitration Attorney

As an Arbitration Attorney, the CHP Law Firm assists clients in business disputes resolved through arbitration outside the general court.

Furthermore, the CHP Law Firm is also responsible for:

Providing competent legal advice
Conducting comprehensive research
Preparing formidable legal arguments
Gathering evidence
Representing clients in arbitration hearings
Facilitating the enforcement of arbitration decisions.

CHP also plays a role in negotiations between disputing parties during the arbitration process.

With this knowledge & expertise, CHP assists clients in achieving fair & beneficial resolutions through arbitration.