BrosurBANI2019_fin.indd 1 18/11/2019 12:34:47 OBJECTIVE AND SCOPE

BANI was established for the following purposes: FIGURE 1 To participate actively in the law enforcement Cases Submission to BANI Arbitration Center process in through the application of 1977-2018 arbitration and alternative dispute resolution Promulgation of RI Law 30/1999 BANI ARBITRATION CENTER for resolving disputes in the various sectors of concerning Arbitration and ADR 12 August 1999 trade, investment, industry and nance, such as BANI Arbitration Center (BANI) is an arbitral institution, providing a range of corporate, insurance, nancial institution matters, 1977-1999 2000-2018 services in relation to arbitration, mediation, binding opinion and other form of aviation, manufacturing, telecommunication, sea, prior to Law 30/1999 after Law 30/1999 is in effect dispute resolutions. land and air transportation, mining, intellectual property rights, licensing, franchise, construction, BANI was established by of Indonesia Chamber of Commerce and Industry shipping/maritime issues, environmental issues, (KADIN Indonesia) by Decree No. SKEP/152/DPH/1977 in November 30, remote sensing and others within the scope as set 1977, signed by Mr. Soewoto Soekendar (Marsekal TNI), the Chairman, and forth by laws and regulations and international 162 cases 1008 cases practices. in 22 years in 19 years Mr. Drs Susdam Djamhari, the Secretary General of Indonesia Chamber of Commerce and Industry. The chairmen of BANI in their prospective times To provide services for the dispute settlement The growing interest has been consistent with the were Prof. R. Subekti (1977-1987), Mr. Haryono Tjitrosoebono (1988-1993) through arbitration or other forms of alternative globalization in which out of court settlement has and Prof. H. Priyatna Abdurrasyid (1993-2015). Since 2015 BANI is chaired dispute resolution, such as negotiation, become the preferred choice of business entities mediation, conciliation and binding opinion in to resolve disputes. Besides it is speedy, e cient, by Mr. M. Husseyn Umar, SH, FCBArb, FCIArb. BANI is located in with accordance with the Rules of Procedures of BANI direct, and has final and binding characteristics,  ª '      1M  M. M or other rules as opted by the parties. without possibility of appeal or cassation. Other Denpasar, , and . benet of arbitration is the condentiality, in which To act autonomously and independently in the proceeding and the award are not published. Since the establishment through its development for the last 41 years, it can be regard of upholding law and justice. The growth of registered cases in BANI is shown in said that the resurgence of arbitration as a mean of resolving business disputes below graph. To carry out studies, research and training/ outside the courts in Indonesia only occurred and developed after the birth and education programs as well as seminars or establishment of BANI in 1977. Through the 41 years, throughout its growth, workshops pertaining to arbitration and BANI issued a publication entitled “BANI 41st Anniversary: The Resurgence of alternative dispute resolution. FIGURE 2 Cases registered to BANI Arbitration in Indonesia / BANI 41 Tahun, Kebangkitan Arbitrase di Indonesia” In Indonesia, the significant interest to settle 2000-2018 illustrates a flashback to various activities and the development of BANI over dispute through arbitration began to rise with 500 41 years. the promulgation of Law Number 30 of 1999 on 473 Arbitration and Alternative Dispute Resolution Committed to complete neutrality and independence in its role as an arbitral (Arbitration Law). Before the enactment of Law 400 institution, BANI has developed its own rules and procedures for arbitration, No. 30 of 1999, the basis for examining arbitration 310 300 including the time frame in which the Arbitration / Arbitral Tribunal has to render in Indonesia is Article 615 up to Article 651 RV (the Law as Civil Procedure, Reglement op de award. Such rules are used in both domestic and international arbitration taking Rechtsvordering, Staatsblad 1847:52) and Article 200 place in Indonesia. 377 of the Updated Indonesian Laws (Het Herziene 132 Indonesisch Reglement, Staatsblad 1941:44) and 100 93 Article 705 Progam Regulations for Outside Java and Madura (Buitengewesten Rechtsreglement, 0 2000- 2005- 2010- Staatsblad 1927:227). The Figure 1 graph shows 2015- 2004 2009 2014 2018 the arbitration settlements before and after the (4 years) enactment of Law No. 30 of 1999.

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BrosurBANI2019_fin.indd 2-3 18/11/2019 12:34:48 BANI panel of arbitrators consists of professional of h. Singapore Institute of Arbitrators (SIArb) growing. Currently it has 48 (forty eight) arbitration FIGURE 4 various elds and expertises, of which about fty Cases in Domestic and Foreign / International i. Arbitration Association of Brunei institutions throughout the region. In 2016 BANI percent are foreign nationals. Arbitration / Involvement, 2014-2018 Darussalam (AABD) was honoured to be the host of APRAG Conference j. Asian International Arbitration Centre 2016 in , and in this event Mr. M. Husseyn Umar, The types and proportions of cases handled can (AIAC) the current Chairman of BANI, has been elected as be seen in below graph. In the last five years it 9.27% k. Belgian Centre for Arbitration and the President of APRAG. appears that the disputes in the construction sector international arbitration Mediation (CEPANI) are proportionally the most settled cases in BANI. l. Thai Arbitration Centre (THAC) In the spirit of regional cooperation, in 2007 BANI Meanwhile disputes cases in the leasing business m. Bangladesh International Arbitration along with 5 (five) arbitral institutes established sector has a tendency to increase, close to the Centre (BIAC) Regional Arbitral Institute Forum (RAIF), which later number of construction sector cases. with the establishment of Indonesian Arbitrators 90.73% n. International Economic and Trade domestic arbitration Arbitration Commission (CIETAC) Institute (IArbI), in 2012, BANI membership was FIGURE 3 handed over to IArbI. Nevertheless, in 2012 BANI was Sector of Industries, 2014-2018 BANI also participated in various international honoured to host the annual RAIF conference along conference in arbitration either as participant or with an international seminar on arbitration in 2012 SECTORS % speaker. in Bali and in 2018 in Jakarta. BANI had also been dealing with disputes settlement Construction 26.6% involving foreign companies, either companies In 2004 BANI and other 16 arbitration institutions in BANI is also a member of the ICCA (International Leasing 23.0% operating in Indonesia or companies located the region initiated the establishment of Asia Pacic Council for Commercial Arbitration). At present, ICCA IT & Telecommunication 1 4.7 % overseas. Regional Arbitration Group (APRAG) in Sydney has 40 Governing Board Members and 40 Advisory Trading (Sale and Purchase) 8.9 % (Australia). APRAG membership is increasingly Members coming from 38 dierent countries. Mining/Energy 6.4% Investment 3.9 % . Transportation 2.8% DOMESTIC COOPERATION Insurance 1.7 % Agency 1.1% To run its mission in arbitration development and e. Universitas Sebelas Maret, Solo Finance & Banking 0.3% knowledge dissemination, BANI has signed MoUs f. Universitas Jayabaya, Jakarta Others 10.8% with various domestic institutions and universities. g. Universitas Gadjah Mada, The strategic partners that have cooperation with h. Universitas Diponegoro, BANI are among others : i. Universitas Padjadjaran, NETWORK AND COOPERATION a. Lembaga Pengembangan Jasa Konstruksi j. Universitas Hasanuddin, Nasional (LPJKN); k. Universitas Jambi, Jambi Throughout the age of more than 41 years, BANI These arbitration associations and centres include, b. Perhimpunan Advokat Indonesia (Peradi); l. Univeritas Mulawarman, has made a real contribution in the development among others, the following institutions: c. Ikatan Notaris Indonesia (INI); m. Universitas Panca Bhakti, of arbitration and alternative dispute resolution in a. Japan Commercial Arbitration Association d. Kamar Dagang dan Industri Indonesia n. Universitas Tanjungpura, Pontianak Indonesia, marked by the increasing resolution of (JCAA) (KADIN Indonesia) disputes cases settled, the development of rules b. Netherland Arbitration Institute (NAI ) and procedures, and management of arbitration c. Korean Commercial Arbitration Board hearings. (KCAB) ARBITRATION CLAUSE d. Australian Centre for International Besides, BANI participates in the development of Commercial Arbitration (ACICA) BANI recommends all parties wishing to make ‘’All disputes arising from this contract shall be nally Indonesia’s human resources, in particular with e. Philippines Dispute Resolution Centre, Inc. reference to BANI arbitration, to use the following settled by arbitration under the administrative and respect to education / knowledge and awareness in (PDRCI) standard arbitration clause in their contracts: procedural Rules of Badan Arbitrase Nasional Indonesia arbitration and alternative dispute resolution f. Hong Kong International Arbitration (BANI) by arbitrators appointed in accordance with the Centre (HKIAC) said Rules, which decision shall bind the parties and BANI has established cooperation agreements g. The Foundation for International serve as a decision in the rst and nal instance”. with arbitration associations and centres in other Commercial Arbitration and Alternative countries for the purpose of promoting international Dispute Resolution (SICA-FICA) commercial arbitration and other forms of ADR. 4 5

BrosurBANI2019_fin.indd 4-5 18/11/2019 12:34:48 WHY ARBITRATION ? BINDING OPINION

Resolving dispute through arbitration has the Dispute resolution through arbitration is the answer In facing a potential dispute in a contract They can request BANI for instance to grant a following general advantages: for business which time is vital issue. According to implementation, in particular with respect to the binding opinion with regard to: the interpretation » Closed proceeding (confidentiality in the Law, it must be settled in 180 days. But in BANI interpretation of certain issue in the contract or an of ambiguous provisions in the contract, the proceeding) the awards can be produced faster, around three unpredictable circumstance arise which may aect formulation of new regulation or the revisions of quarters of cases have been completed in less than the implementation of the contract the Indonesian the old regulation to meet changing circumstances, » Simple procedure (flexible procedures and 180 days. Even more, one third of disputes can have Arbitration Law provides a prevention measures for etc. BANI’s binding opinion is final and binding parties autonomy) the awards in less than three months. It is quite time both parties by requesting to BANI for a Binding upon the parties. » Time certainty (with time limitation) e cient. The graph below illustrates the speed of Opinion. » Free choice of independent arbitrators with settlement of cases in BANI in the last ve years. professional background » Free choice of jurisdiction and venue FIGURE 5 ARBITRATION AWARDS » Final and binding award. COMPLETION TIME, Time Required for BANI Arbitration Tribunal to Issue Awards, 2014-2018 The crucial issues of the arbitration are enforcement Along 41 years of BANI history, even though the The eectiveness of arbitration depends on : and recognition of the awards. requirements for the annulment is strictly limited, » Good faith / attitude of the disputing parties to 34% <90 days 24% there were around 14 percent of the awards were solve the dierences/dispute 112 cases 90-150 days Based on the New York Convention (1958), foreign 81 cases challenged in courts. However, at last, there were » The integrity and professionalism of the awards can be executed in Indonesia, and similarly, only 4 awards (i.e. in year 2001, 2002, 2007 and 2013) arbitrator(s) Indonesian arbitration awards involving foreign that were annuled by the Supreme Court. » The readiness of the parties to voluntarily companies are enforceable in other countries. implement the award This fact gures out that only 0,5% of awards were As the prominent and the oldest arbitration annuled. Afterwards, there have been 5 years » The attitude of the court whenever necessary 13% 150-180 days institution in Indonesia and the region, BANI awards without any annulment since 2013. We can conclude with regard to the execution / enforcement of 29% 43 cases have been strongly acknowledged. The Indonesian that the success rate of the arbitration in Indonesia the award. >180 days 97 cases Supreme Court has been upholding the BANI is signicant . Arbitration Awards.

HYBRID ARBITRATION AND ADR

BANI Arbitration Center has been combining The implementation of “Hybrid Arbitration” found to arbitration procedures with other ADR mechanism be concurrent with out-of-court dispute settlement BANI REPRESENTATIVE OFFICES since 2000, which predates the RI Supreme Court philosophy (non litigation dispute settlement) Circular Memorandum promoting the pre-trial court which in seeking the solution of a dispute between BANI has representative o ces in seven major cities BANI has been actively organizing and participating annexed mediation to be implemented by all state parties the arbitration tribunal should take into in Indonesia: Bandung, , Medan, Pontianak, in various national and international various courts in Indonesia. account not only “right based” consideration, but Palembang, Denpasar and Jambi. conferences or seminars on arbitration / alternative also acknowledge the “interest based” view of the dispute resolution. BANI publishes the Indonesia Any representatives office can be chosen by the ADR in a combined process into arbitration parties. Arbitration Quarterly Newsletter, a quarterly legal procedure in BANI (in practice through application Parties as a venue for arbitration by using BANI journal, publishing recent development and analysis of med-arb and/or arb-med proceedings) has Rules & Procedures. It should be noted that the on arbitration, and related knowledge on the successfully carried out and resulted in awards BANI Representative o ces is not jurisdiction, so this alternative dispute resolution. Prominent arbitrators, in almost 50% of the total arbitration procedures makes it easier and possible for the Parties to choose scientists and practitioners either from Indonesia or conducted. venues that are more in line with the needs of the abroad contribute their works in each issues of the parties themselves. journal.

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BrosurBANI2019_fin.indd 6-7 18/11/2019 12:34:48 BANI 2019

BADAN ARBITRASE NASIONAL INDONESIA BANI ARBITRATION CENTER Wahana Graha Buiding, 1st,2nd & 4th Floor, Jl. Mampang Prapatan No. 2, Jakarta 12760, Indonesia Tel. (62-21) 7940542, Fax (62-21) 7940543 e-mail: [email protected] www.baniarbitration.org

BANI Bandung O ce Kompleks Surapati Core Blok AB No. 33 BANI Pontianak O ce Komp. Ayani Mega Mall Blok AA-6 Jl. PHH Mustofa (Suci) Jl. A. Yani, Pontianak 78122 Bandung 40125 Phone : +62 (0561) 66 55 299 Phone : (022) 7152 0320 Fax : +62 (0561) 761 018 Fax : (022) 8724 2706 E-mail : [email protected] E-mail : [email protected] BANI Palembang O ce Jl. Alamsyah RPN (Musi 2) BANI Surabaya O ce Jl. Ketintang Baru VIII/10 Komplek BOP A No. 04-05 Surabaya 60231 Palembang 30139 Phone : +62 (031) 8287414, 8293486 Ph./Fax : (0711) 5630744 Fax : +62 (031) 8290522 E-mail : [email protected] E-mail : [email protected] BANI Bali & Nusa Tenggara Gedung KADIN Bali Lt. II BANI Medan O ce Jl. Sekip Baru No. 16 Jl. Mawar No. 3, Denpasar, Bali 80233 Medan 20112 Ph./Fax : +62 (0361) 233053 Phone : +62 (061) 4523654 E-mail : [email protected] Fax : +62 (061) 4155523 E-mail : banimedano [email protected] BANI Jambi O ce Jl. Jend. Sudirman No. 88, Thehok, Jambi Phone : (0741) 31185 Fax : (0741) 31185 E-mail : [email protected]

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