Dealing with Unsatisfactory Arbitral Awards: Observing the Grounds of Annulment of Arbitral Awards in Indonesia

Penulis: Fitrianggraeni, Setyawati; Fauziah, Eva Fatimah; Purnama, Sri
Informasi
JurnalJournal of International Arbitration
PenerbitKluwer Law International
Volume & EdisiVol. 40,Edisi 6
Halaman735 - 764
Tahun Publikasi2023
ISSN02558106
Jenis SumberScopus
Abstrak
Arbitration is often preferred because its award is final and binding. Nonetheless, this premise is not absolute. There are situations where the arbitral award can be set aside. In Indonesia, this procedure is locally known as annulment and requested to the District Court (or Pengadilan Negeri ‘PN’). Article 70 of Law No. 30 of 1999 on Arbitration and Alternative Dispute Resolution (‘AADR Law’) sets out three main grounds to request an annulment, i.e., forgery, concealment, and deception. However, the General Elucidation of the AADR Law suggests a non-exhaustive list of grounds by using the term ‘amongst others’. This vague phrase opens the grounds for interpretation by the Court, and parties seeking annulment can request grounds outside those expressly listed in the AADR Law. The most common examples include ultra petita, unfairness, and even Article 643 of the Reglement op de Rechtsvordering (RV), which have been previously invoked in annulment cases. The authors aim to scrutinize the prevailing laws and decisions regarding the annulment of the arbitral award and delve deeper into the grounds for arbitral award annulment requests in Indonesia from 2019-2022. Seventy cases were examined during this period. Out of seventy cases, twenty-nine cases were filed for an appeal to the Supreme Court, and two cases out of the twenty-nine cases sent for civil review. In total, fourteen cases were granted annulment, whereas twenty-two requests were held inadmissible (niet onvankelijke verklaard), and thirty-four requests were rejected. © 2023 Kluwer Law International BV, The Netherlands
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