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All Journal Indonesia Law Review (ILREV) Journal of Private and Commercial Law
Salsabila, Mayta Ciara
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Law, Crime, Criminology & Criminal Justice

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THE NON-APPLICATIONS OF GOOD FAITH, TRUST, AND CONFIDENTIALITY IN ARBITRATION: A STUDY OF THE ANNULMENT CASES IN INDONESIA Roosdiono, Anangga W.; Taqwa, Muhamad Dzadit; Salsabila, Mayta Ciara
Indonesia Law Review Vol. 12, No. 2
Publisher : UI Scholars Hub

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Abstract

Arbitration is a dispute resolution method that is chosen by the parties for, mainly, avoiding weaknesses of resolving disputes through the general court. It has three principles, that strongly connect to one another, to hold: good faith, trust, and confidentiality. These principles determine whether a dispute resolution through arbitration will be successful. However, in many - if not all - cases, many disputing parties still do not maintain these principles. This reality can be observed in annulment cases. Although the annulment mechanism renders a protection to the parties from the errors made by intention, this mechanism opens an opportunity for these people just to pause the execution of the arbitral awards, makes their cases become open for the public, and even puts the final-and-binding status of the awards in question. On the other hand, there are still a few cases showing that such errors, made by the tribunals or the winning parties, occurred. From these cases, this paper is to question whether the existence of annulment is the key factor of the non-applications of these three principles or the tool to prevent the non-applications. First, a descriptive comprehension of these principles is elaborated. Afterwards, the annulment mechanism, provided by Article 70 of Law 30 of 1999 on Arbitration and Alternative Dispute Resolutions, is comprehended to see its nature and practical implications. At the end, some annulment cases are dissected to answer the research question.
The Interconnection Between Arbitration and Commercial Courts: Scenarios, Issues, and A Proposal Roosdiono, Anangga W.; Taqwa, Muhamad Dzadit; Salsabila, Mayta Ciara
Journal of Private and Commercial Law Vol. 9 No. 1 (2025): Journal of Private and Commercial Law
Publisher : Universitas Negeri Semarang

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.15294/jpcl.v9i1.7833

Abstract

There is a possibility that parties who have put an arbitration clause in their agreement may still bring bankruptcy or suspension of debt payment obligations before the Commercial Court (“Pengadilan Niaga”). In another scenario (Scenario 2), this situation can also—and often does—occur due to a third party, not bound by the arbitration clause, filing a bankruptcy petition against one of the parties. This article examines two key aspects when both forums are utilized: (1) the interrelation between these two forums in the context of the consequences of their respective decisions on each other; and (2) the conflicting principles, such as confidentiality and trust in arbitration versus public openness and distrust in Pengadilan Niaga. When one party ultimately submits a bankruptcy case to Pengadilan Niaga, the confidentiality of the dispute is compromised, and mutual trust is eroded. However, this reality is not strong enough to justify eliminating the potential overlap between arbitration and Pengadilan Niaga, given that scenarios where a third party files a bankruptcy petition can also occur. In such a scenario, the issue extends beyond the mere clash of principles. A proper framework to regulate the intersection between arbitration and Pengadilan Niaga needs to be formulated, taking into account the two scenarios that may arise.
Co-Authors Roosdiono, Anangga W. Taqwa, Muhamad Dzadit