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Q & A Arbitration

Question:

What is the basis for an option to settle a dispute through arbitration?

Answer:

Arbitration is one of the avenues to settle civil issues outside the public court. The basis for arbitration is an arbitration agreement drawn up in writing by the disputing parties. This means that the arbitration agreement can either be included as one of the clauses in the main agreement between the parties or made into a separate arbitration agreement by the parties after a dispute arises. Basis: Law Number 30 of 1999 regarding Arbitration and Alternatives to Dispute Settlement.

Question:

What is an example of an arbitration clause in an agreement?

Answer:

Arbitration can be carried out on an ad-hoc basis (independently) or through an arbitration institution. Should you decide to select the Indonesian National Board of Arbitration as your arbitration institution, the arbitration clause in your agreement can be worded as follows: “All disputes arising from this agreement will be settled and decided upon by the Indonesian National Board of Arbitration (BANI) pursuant to the administrative and procedural rules of arbitration of BANI, the decision of which shall be binding to both parties in dispute as a decision of the first and final instance.”

Basis: http://www.baniarbitration.org/ina/ procedures.php