Indonesian law does not recognize foreign court judgments as enforceable in Indonesia. The parties must submit a new claim in an Indonesian court to enforce a judgment awarded by a foreign court. The foreign court judgment may be submitted as evidence in the new claim in the Indonesian court.
Indonesia has ratified the Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958 (“New York Convention”), by way of Presidential Decree No. 34 of 1981.
Pursuant to Law No. 30 of 1999 regarding Arbitration and Alternative Dispute Resolution (“Arbitration Law”), a foreign arbitral award is recognized and enforceable in Indonesia if:
- The award is given by an arbitrator or tribunal in a state that is, along with Indonesia, a party to a bilateral or multilateral treaty that recognizes foreign arbitral awards.
- The award is limited to what is considered to fall within the scope of commercial law in Indonesia.
- The award does not contravene public order.
- The award has received an execution order from the Central Jakarta District Court.
- If the award involves the Republic of Indonesia as one of the parties in dispute, the award may only be enforced after receiving an execution order from the Indonesian Supreme Court.
This first appeared in The International Comparative Legal Guide to: Shipping Law 2019, published by Global Legal Group. You can find the full chapter here.
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