Indonesia: Practical Tips to Streamline Dispute Resolution Process from an Early Stage

09 Sep 2019 WPG Update

There is a common perception that Indonesia’s dispute resolution environment is complex and challenging. In the World Justice Project Rule of Law Index 2019, which ranks jurisdictions on various aspects of their legal and regulatory framework, Indonesia is ranked 62 out of 126 jurisdictions. However, for the "Civil Justice" category, which concerns, among others, the enforcement of civil and commercial claims, Indonesia was placed 102 out of 126 jurisdictions.

President Joko "Jokowi" Widodo had set a target for Indonesia to be in the top 40 countries in the World Bank's Ease of Doing Business Index under his watch. After moving up from 114th place in 2014 (when President Jokowi took office) to 72nd place in 2017, Indonesia has since slid back one place to 73rd in 2018. The improvements in Indonesia's ranking have generally been attributable to the new rules that, among others, allow for greater ease in starting a business in Indonesia, registering property and obtaining credit. However, reforms in certain areas, including in enforcement of contracts and resolving insolvencies, have not been fully implemented yet.

While it is expected that such reforms will be forthcoming in the near future, in the current environment, it is crucial for parties to understand the strategic factors which will impact them in the event of a dispute and build safeguards into the contractual mechanisms, even from the early stages in drafting the contract.

Should you require any strategic or legal advice on structuring a transaction or a dispute resolution / enforcement action involving Indonesian elements, you may wish to contact the following lawyers:

Alvin YEO, Senior Counsel
Chairman & Senior Partner 
d +65 6416 8101
Click here to see Alvin's CV.

d +65 6416 8106
Click here to see Manoj's CV.

Lawrence FOO
d +65 6416 2467
Click here to see Lawrence’s CV.

Dr Yozua MAKES
Founder and Managing Partner  
Click here to see Dr Yozua’s CV.

Click here to see Billy’s CV.