2. Governing Lagislation

2.1 What legislation governs the enforcement of arbitration proceedings in Indonesia?

      Were there any significnt changes made to that arbitration legislation in the past year?

The Indonesian Arbitration Law governs the enforcement of arbitration proceedings in Indonesia. There are no significant changes made to that Law in the past year.

2.2 Does the same arbitration law govern both domestic and international arbitration proceedings? If not, how do they differ?

The Indonesian Artnitration Law applies to all arbitrations conducted within the territory of Indonesia ang the enforcementand recognition of both domestic and international arnitral awards. The in no distinction “domestic” and “Internatioanl” with regard to the nationality of the parties or the location of their project or dispute. The only difference betwewn a domestic arbitration, being one conducted outside Indonesia, is the procedure and venue for recognition and enforcement of the award. In addition, as one would except, provisions of the Arbitration Law governing the conduct of the arbitration proceedings themselves apply only to domestic arbitration.

2.3 Is the law governing international arbitration based on the UNCITRAL Model Law? Are there significant differences between the two?

No, the Indonesian Arbitration Law is not based on the UNCITRAL Model Law (including its 2006 amendments). The Indonesian Arbitration Law is an amalgamation  of a number of principles from predecessor legislation (1849 Dutch Code of Civil Procedure). Some of the differences between the two are as follows :

        i.            Incorporation by reference is not clearly established  in Indonesia

      ii.            Based on the Indonesia Arbitration Law, unless the parties agree otherwise, the language will be Indonesian, regardless of the language of the documents involved.

    iii.            The Indonesian Arbitration Law states that a case is decided on document unless the parties or the arbitrators wish to have hearning, whereas the UNCITRAL Model Law requires hearings unless the parties agree otherwise.

     iv.            Awards in Indonesia must be reasoned

       v.            The Indonesian Arbitration Law only permits typographical errors and the like to be corrected, and the parties have only 14 days to so request, and

     vi.            Grounds for annulment of Indonesian awards are far more limited than those set in the UNCITRAL Model Law, and consist principally of fraud, forgery or concealed material documents.

The Indonesian Arbitration Law also incorporates provisions for the recognition and enforcement of international arbitral awards, which were missing from predecessor legislation , to bring Indonesian Law into comformity with the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which Indonesia became a perty to in 1981.

2.4 To what extent are there mandatory rules governing international arbitration proceedings sited in Indonesia?

The Indonesian Arbitration Law contains mandatory provisions governing the appointment of arbitrators and challenges to their appointment and the from and delivery of arbitral award. The Indonesian Arbitration Law also provides rules governing orther procedural matters, which may be followed in an ad hoc arbitration in Indonesia. If the parties elect to use a national or international arbitration institution to settle their dispute, then the rules and procedures of thet institution will apply, except as the parties otherwise decide.