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Abstract

This article discusses the issues of conflicts of laws that may arise when the parties, including an Indonesian party, have a contract governed by Indonesian law which includes an arbitration clause that states that the seat of the arbitration is Singapore. After discussing the rules of conflict of laws applicable to the choice of a substantive law governing the contract and the arbitration clause, the article discusses the difficulties that parties and the tribunal often face in an arbitration in which Indonesian law is the governing law. It then discusses conflict rules affecting the validity of the arbitration agreement and the jurisdiction of the tribunal. It finally discusses two other potentially conflictual situations that may arise.

Bahasa Abstract

Artikel ini membahas permasalahan hukum antar tata hukum yang timbul ketika para pihak, termasuk pihak dari Indonesia, memiliki kontrak yang diatur oleh hukum Indonesia yang mengandung klausul arbitrase yang memilih kedudukan arbitrase di Singapura. Setelah mendiskusikan aturan hukum antar tata hukum yang berlaku dalam hukum materiil yang mengatur kontrak dan klausul arbitrase, artikel ini membahas kesulitan yang para pihak dan majelis arbitrase sering hadapi dalam arbitrase ketika hukum Indonesia merupakan hukum yang berlaku. Artikel ini kemudian membicarakan aturan hukum antar tata hukum yang memengaruhi keabsahan dari perjanjian arbitrase dan yurisdiksi dari majelis arbitrase. Pada bagian akhir, artikel ini membahas dua situasi konflik lain yang dapat timbul.

References

Legal Documents a) Laws England. Arbitration Act 1996, https://www.legislation.gov.uk/ukpga/1996/23/contents accessed on 27 February 2022. Indonesia. Burgerlijk Wetboek voor Indonesie (Kitab Undang-Undang Hukum Perdata / Indonesian Civil Code), 30 April 1847, S. 1947 No. 23. Indonesia. Undang-Undang tentang Peraturan Dasar Pokok Agraria (Law regarding Basic Agrarian Law). UU No. 5 Tahun 1960, LN No. 104 Tahun 1960 (Law Number 5 Year 1960, SG No. 104 Year 1960). Indonesia. Undang-Undang tentang Kitab Undang-Undang Hukum Acara Pidana (Code of Criminal Procedure), UU No. 8 Tahun 1981 (Law No. 8 Year 1981). Indonesia. Undang-Undang tentang Bendera, Bahasa, Dan Lambang Negara, Serta Lagu Kebangsaan (Law on National Flag, Language, Emblem and Anthem), UU No. 24 Tahun 2009 (Law No 24 of Year 2009). Indonesia. Undang-Undang tentang Arbitrase dan Alternatif Penyelesaian Sengketa (Arbitration and Alternative Dispute Resolution), UU No. 30 Tahun 1999 (Law No. 30 Year 1999). Indonesia. Undang-Undang Tentang Kekuasaan Kehakiman (Law on Judicial Power), UU No. 48 Tahun 2009 (Law No 48 Year 2009). Singapore. International Arbitration Act, Statute of Singapore, Chapter 143A.

b) Treaties Convention on the Recognition and Enforcement of Foreign Arbitral Awards. New York, 10 June 1958. United Nations Treaty Series. Vol. 330. No. 4739. https://uncitral.un.org/sites/uncitral.un.org/files/media-documents/uncitral/en/new-york-convention-e.pdf accessed on 27 February 2022.

c) Official Documents of the United Nations United Nations. General Assembly. UNCITRAL Model Law on International Commercial Arbitration 1985, Resolution 40/72 (11 December 1985) UN Document A/40/17, annex 1, https://uncitral.un.org/sites/uncitral.un.org/files/media-documents/uncitral/en/06-54671_ebook.pdf accessed on 27 February 2022. United Nations. General Assembly. UNCITRAL Model Law on International Commercial Arbitration 2006, Resolution 61/33 (4 December 2006), https://uncitral.un.org/sites/uncitral.un.org/files/media-documents/uncitral/en/19-09955_e_ebook.pdf accessed on 27 February 2022.

d) Rules of arbitration Arbitration Rules of the Singapore International Arbitration Centre [SIAC Rules] 6th Edition, 1 August 2016, https://www.siac.org.sg/images/stories/articles/rules/2016/SIAC%20Rules%202016%20English_28%20Feb%202017.pdf, accessed on 27 February 2022. ICC Rules of Arbitration 2021, https://iccwbo.org/dispute-resolution-services/arbitration/rules-of-arbitration/ Accessed on 27 February 2022.

e) Cases England, Dallah Real Estate & Tourism Holding Co. v. Ministry of Religious Affairs, Government of Pakistan [2010] 3 W.L.R. 1472 (U.K. Supreme Court). England, Sulamérica Cia Nacional de Seguros SA v Enesa Engelharia SA [2013] 1 WLR 102 (C.A.). France, Gouvernement du Pakistan v. Société Dallah Real Estate & Tourism Holding Co, Cour d’appel de Paris, Pôle 1 – Ch. 1, n° 09/28533 (17 February 2011), available in French at https://uk.practicallaw.thomsonreuters.com/Link/Document/Blob/I5b54f1531ef511e38578f7ccc38dcbee.pdf?targetType=PLC-multimedia&originationContext=document&transitionType=DocumentImage&uniqueId=939220ed-91a0-40fc-b67a-36e63c41bd4e&ppcid=978e20c11f9a4cbbacef90ba01a4037f&contextData=(sc.DocLink)&comp=pluk accessed 27 February 2022. Indonesia, Supreme Court, Astro Nusantara International BV v. PT Ayunda Primamitra, “Decision No. 01 K/Pdt.Sus/2010” (24 February 2010). Indonesia, Supreme Court, Karaha Bodas, “Decision No. 01/Banding/Wasit.Int/2002” (8 March 2004). Indonesia, Central Jakarta District Court, PT Digital Fiducia Indonesia v. Hendrisman Rahim, “Interlocutory Decision No. 106/Pdt.G/2013/PN.Jkt.Pst” (19 September 2013). Indonesia, South Jakarta District Court, PT Perusahaan Dagang Tempo v. PT Roche Indonesia, “Interlocutory Decision No. 454/Pdt.G/1999/PN.Jkt.Sel” (25 January 2000). Indonesia, Central Jakarta District Court, PT Perusahaan Listrik Negara (Persero) v. PT Paiton Energy, “Interlocutory Decision No. 517/Pdt.G/1999/PN.Jkt.Pst” (13 December 1999). Singapore, BCY v BCZ [2016] SGHC 249. Singapore, BNA v BNB [2019] SGCA 84. Singapore, PT Pukuafu Indah v Newmont Indonesia Ltd [2012] SGHC 187. Singapore, Tomolugen Holdings Ltd v Silica Investors Ltd [2015] SGCA 57.

Books Born, Gary. International Arbitration and Forum Selection Agreements: Drafting and Enforcing, 6th ed. Alphen aan den Rijn, The Netherlands: Kluwer Law International, 2021. Budidjaja, Tony. Public Policy as Grounds for Refusal of Recognition and Enforcement of Foreign Arbitral Awards in Indonesia. Jakarta: Tatanusa, 2002. Chan, Darius, et al. Law and Theory of International Commercial Arbitration in Singapore. Singapore: SAL Academy Publishing, 2022. Rajagukguk, Erman. Arbitrase Dalam Putusan Pengadilan. Jakarta: Chandra Pratama, 2000.

Book Chapters Bell, Gary F. “Arbitration and Comparative Law” in The Cambridge Companion to International Arbitration, edited by C.L. Lim, 61-78. Cambridge: Cambridge University Press, 2021. Bell, Gary F. “Codification and Decodification: The State of the Civil and Commercial Codes in Indonesia” in Codification in East Asia – Selected Papers from the 2nd IACL Thematic Conference, edited by Wen-Yeu Wang, 39-50. Switzerland: Springer, 2014. Soemartono, Gatot and Lumbantobing, John. “Indonesian Arbitration Law and Practice in Light of the UNCITRAL Model Law” in The UNCITRAL Model Law and Asian Arbitration Laws, edited by Gary F Bell, 262-298. Cambridge: Cambridge University Press, 2018.

Articles Adolf, Huala. “The Provisions on the Enforcement of Foreign Arbitration Awards in Indonesia (under the New York Convention of 1958).” Journal of Arbitration Studies 27 Vol. 3 (2017): 33-52. Bedner, Adriaan. “Indonesian Legal Scholarship and Jurisprudence as an Obstacle for Transplanting Legal Institutions.” Hague Journal on the Rule of Law Year 5 (2013): 253-273. Bell, Gary F. “The Civil Law, the Common Law, and the English Language – Challenges and Opportunities in Asia.” Asian Journal of Comparative Law 14 (2019): S29–S49. Rubins, Noah. “The Enforcement and Annulment of International Arbitration Awards in Indonesia.” American University International Law Review 20 (2005): 359-402.

Websites Global Arbitration Review, “It’s getting easier in Indonesia.”, https://globalarbitrationreview.com/its-getting-easier-in-indonesia accessed 27 February 2022. Singapore International Arbitration Centre [SIAC], “Annual Report 2020”, p. 17, https://www.siac.org.sg/images/stories/articles/annual_report/SIAC_Annual_Report_2020.pdf accessed on 27 February 2022.

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