Abstract
Indonesia has been being a member of the 1958 New York Convention since 1981, namely upon issuance of the Presidential Decree No. 34 of 1981. Prior to taking into force of the Regulation of the Supreme Court of the Republic of Indonesia No. 1 of 1990 on Procedures for Enforcement of Foreign Arbitral awards, there were still constraints for the foreign business players in term of enforcement of arbitral awards in Indonesia. The Supreme Court as the highest judicial institution in Indonesia holds that international arbitral awards can not be enforced in Indonesia. After the Indonesian Supreme Court has issued such a regulation, enforcement of international arbitral awards in Indonesia began to be enforceable, because the procedural law that governs the procedures for execution of arbitral awards has been clear. In order to regulate better the international arbitral award problems in the hierarchy of legislation, on October 12, 1999, the Law on Arbitration and Alternative Dispute Resolution was promulgated. In that Law, there is a special part discussing the International Arbitration. This study examines the development of international arbitral award enforcement in Indonesia before Indonesia becoming member of the 1958 New York Convention, until nowadays, by analyzing the international arbitral awards that were decided by the Supreme Court of the Republic of Indonesia after the coming into effect of the Arbitration Law.
Highlights
In the case between PT Pertamina (Parser) versus Sahara Bodas Company (KBC) and PT PLN based on the Joint Operation Contract (JOC) and the Energy Sales Contract (ESC), which has been decided by the Geneva arbitration assembly of Swiss, and annulled by the Central Jakarta District Court, obviously the parties choose their substantive law if the Indonesian law Article 13 of the Joint Operation Contract (JOC) and Article 8 of the Energy Sales Contract (ESC), the place of arbitration is in Geneva Swiss meaning the State of Indonesia as the Country of Origin whose law is used for arbitration that was decided in Geneva Swiss
This can be studied from the three cases that were rejected for enforcement at cassation level in the Supreme Court in the case of Bankers Trust vs. PT Mayora Indah, the case of Bankers Trust vs. Jakarta International Hotel Development, and the case of PT Astro International vs. PT Ayunda Prima Mitra
Rejection of international arbitral award was made by the Supreme Court of the Republic of Indonesia against the arbitral award of the SIAC in the case of Astro, which was a reaffirmation of rejection of international arbitral award from the Central Jakarta District Court
Summary
From several examples of cases above, it can be said that Indonesia has been a member of the 1958 New York Convention, there are still refusals of the Supreme Court to enforce the international arbitral awards.
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