Dispute Resolution Services
Expert Services International can provide dispute resolution services in Indonesia under Law No. 30 of 1999, BANI Rules, mediation and expert determination.
Indonesian Dispute Resolution Framework
Dispute resolution in Indonesia is governed by Law No. 30 of 1999 on Arbitration and Alternative Dispute Resolution. BANI (Badan Arbitrase Nasional Indonesia) is the principal arbitration institution, administering both domestic and international arbitrations under the BANI Rules 2025. The Construction Services Law 2017 (Law No. 2 of 2017) establishes specific dispute resolution provisions for the construction industry.
Expert Services International can provide arbitration, mediation, expert determination and dispute advisory services in Indonesia, particularly in international arbitration proceedings involving construction and infrastructure disputes.
Indonesia is a civil law jurisdiction. Law No. 30 of 1999 on Arbitration and Alternative Dispute Resolution provides the statutory framework for arbitration and ADR.
Commercial Arbitration
Law No. 30 of 1999 on Arbitration and Alternative Dispute Resolution establishes the legal framework for arbitration in Indonesia. The law provides clear provisions for the formation of arbitration agreements, the requirements for arbitration seats within Indonesia, the procedures for appointment of arbitrators, the conduct of arbitral proceedings and the enforcement of arbitral awards. The law permits both domestic arbitration and international commercial arbitration to proceed in accordance with the UNCITRAL Model Law, providing substantive alignment with international arbitration standards.
The BANI Arbitration Rules have undergone significant revision to align with international standards. The 2025 BANI Arbitration Rules represent a refinement of the 2022 rules and introduce important procedural innovations designed to bring BANI closer to international best practice standards. The 2025 rules provide for emergency arbitration, allowing parties to seek urgent interim measures before the full arbitration tribunal is constituted. Pursuant to the rules, the BANI chairman must appoint an emergency arbitrator within two days of receiving a request, and the emergency arbitrator must render a decision within 14 days, with a possible extension of seven additional days. The rules also provide comprehensive provisions for arbitration involving multiple parties or multiple agreements, allowing consolidation where sufficient connection exists between the matters in dispute. Article 9 of the 2025 BANI Rules now expressly empowers BANI to administer both domestic and international commercial disputes, clarifying the institution's jurisdiction and operational scope.
Beyond BANI, Indonesia's arbitration landscape includes other institutional frameworks and ad hoc arbitration mechanisms. The availability of multiple dispute resolution pathways provides parties with substantial flexibility in selecting the arbitration forum and procedures best suited to their dispute. The Supreme Court Regulation 3 of 2023 addresses enforcement of arbitral awards in Indonesian courts, establishing procedures and standards that facilitate enforcement of both domestic and international awards. This regulatory development reflects Government commitment to ensuring enforceability of arbitral awards and to promoting arbitration as an effective dispute resolution mechanism in Indonesia.
Alternative Mechanisms
Law No. 30 of 1999 also provides a comprehensive framework for alternative dispute resolution in Indonesia, including mediation and conciliation procedures. Court-annexed mediation has become an increasingly important mechanism within Indonesia's civil litigation system, with Supreme Court regulations establishing mandatory mediation procedures in certain categories of cases. The court-annexed mediation framework requires parties to attempt mediation before proceeding to formal adjudication, reflecting a legislative policy preference for consensual resolution before more adversarial and costly litigation.
BANI provides institutional mediation services alongside its arbitration facilities, allowing parties to initiate dispute resolution through mediation and, if necessary, to escalate to arbitration. Institutional mediation administered by BANI carries greater formality and procedural sophistication than court-annexed mediation, and BANI's mediators possess specialised expertise in commercial and technical matters. The availability of mediation as a precursor to arbitration has proven effective in enabling parties to achieve settlement of many disputes without incurring the costs and formality of full arbitration.
Indonesia's broader alternative dispute resolution landscape includes mediation procedures operating outside formal institutional frameworks. These mechanisms reflect traditional Indonesian approaches to dispute resolution based on consensus and harmony. The combination of court-annexed mediation, institutional mediation and traditional ADR mechanisms provides parties with diverse pathways for achieving settlement before escalating disputes to formal arbitration or litigation.
Construction Disputes
Construction disputes in Indonesia are governed by the Construction Services Law of 2017 (Law No. 2 of 2017), which was subsequently amended through the Job Creation Law (Omnibus Law) enacted in 2023. The Construction Services Law establishes the foundational framework for construction project licensing, contractor classification, contract requirements and dispute resolution mechanisms. This legislation reflects Government commitment to regulating the construction sector and to ensuring that construction disputes are resolved through effective and accessible mechanisms.
The use of international standard form contracts has become increasingly prevalent in major construction and infrastructure projects in Indonesia, particularly those involving international financing or participation by international contractors and consultants. FIDIC standard forms provide detailed contractual frameworks with particular emphasis on contractual clarity, equitable risk allocation, transparent variation procedures and comprehensive dispute resolution mechanisms. The LKPP (Lembaga Kebijakan Pengadaan Barang/Jasa Pemerintah, or Government Procurement Policy Board) model contract has been developed as a standardised template for government-financed construction projects and has become widely adopted for public sector projects.
Dispute adjudication board (DAAB) provisions have been incorporated into many major construction contracts in Indonesia, reflecting international best practice and the effectiveness of this mechanism in addressing technical and contractual disputes during the course of construction. The DAAB procedure allows parties to refer disputes to a standing panel of three independent experts who can render binding decisions on technical matters and contractual interpretations. This mechanism has proven highly effective in resolving disputes before they escalate to formal arbitration or litigation, thereby reducing delays and costs to construction projects.
Contemporary Developments
Indonesia's dispute resolution landscape has been shaped by several recent legislative and institutional developments. The 2025 BANI Arbitration Rules represent a significant refinement of the institution's procedural framework, incorporating innovations in emergency arbitration and multi-party dispute procedures. These revisions reflect BANI's commitment to aligning its procedures with international standards and to providing sophisticated institutional support for complex commercial disputes.
The Job Creation Law 2023 (Omnibus Law) introduced amendments to the Construction Services Law 2017 and to other regulatory frameworks affecting construction disputes. These amendments reflect Government effort to streamline regulatory requirements and to promote efficiency in the construction sector. The amendments have also clarified the application of dispute resolution mechanisms in construction contracts and have reinforced the importance of alternative dispute resolution as a means of avoiding delays associated with formal litigation or arbitration.
The new Indonesian Criminal Code (KUHAP) 2025 represents a comprehensive revision of Indonesia's criminal procedural framework. Whilst primarily focused on criminal matters, the new code reflects contemporary legislative approaches to procedural efficiency and fairness and has potential implications for certain categories of construction-related disputes that may have criminal as well as civil dimensions. These statutory developments demonstrate Indonesian Government's ongoing commitment to modernising the country's legal frameworks and to promoting efficient and effective dispute resolution mechanisms.
Asia-Pacific Expertise
Expert Services International can provide services in dispute resolution across Indonesia's institutional arbitration framework, mediation procedures and construction dispute mechanisms. Our practice combines technical knowledge of BANI procedures with deep understanding of Indonesian law, contract standards and the practical realities of commercial and construction dispute resolution in Indonesia.
Whether the dispute concerns commercial transactions, construction and infrastructure projects or cross-border disputes involving Indonesian participants, our team understands the institutional frameworks, procedural requirements and substantive law applicable in each forum. We prepare expert evidence and written submissions addressing contractual interpretation, liability analysis and damages quantification. We participate effectively in arbitration hearings, mediation procedures and pre-arbitral mechanisms including DAAB procedures.
Our Expertise
Expert Services International can provide dispute resolution services to parties involved in construction and infrastructure disputes. Our services include acting as arbitrator, expert determiner and mediator. We also provide expert witness reports and testimony addressing quantum, delay, disruption, construction defects, contractual interpretation, variations, liquidated damages and claims for set-off.
We prepare claims submissions, expert reports and advocacy for use in arbitration, expert determination, mediation and dispute board proceedings. We can assist parties with the preparation and presentation of claims and defences across all forms of dispute resolution.
Service Scope
Acting as arbitrator in domestic and international arbitration proceedings. We manage all aspects of arbitral procedure, conduct efficient hearings and deliver reasoned awards addressing the issues in dispute in accordance with applicable law and the parties' contractual framework.
Acting as expert determiner under contractual expert determination clauses and institutional rules. Expert determination provides a binding resolution of technical and valuation disputes by a suitably qualified professional, typically within a shorter timeframe than arbitration or litigation.
Preparation of expert reports addressing quantum, delay, disruption, construction defects, contractual interpretation, variations, liquidated damages and claims for set-off. We provide expert testimony in arbitration, court proceedings, mediation and expert determination proceedings.
Acting as mediator and providing mediation services to assist parties in reaching a negotiated resolution of disputes. We facilitate structured discussions, assist in identifying common ground and help parties achieve settlement without the need for formal adjudication.
Acting as dispute board member, chairperson or single neutral on major infrastructure projects. Dispute boards provide a standing mechanism for the rapid resolution of disputes during project execution, maintaining familiarity with the project throughout its duration.
Preparation of claims submissions and expert analysis for use in arbitration, expert determination, mediation and dispute board proceedings. We assist parties with the preparation and presentation of claims and defences addressing quantum, delay, disruption and contractual matters.
