A 'Renewed' Arbitration Body in Indonesia ? BANI Pembaharuan

A 'Renewed' Arbitration Body in Indonesia ? BANI Pembaharuan

11 April 2017

BANI (Badan Arbitrase National Indonesia) is known as the Indonesian arbitration body which deals with commercial disputes. In September 2016, an arbitration body, namely BANI (BANI Pembaharuan/the "Renewed BANI") was launched in Indonesia at the initiation of a number of arbitrators from the original BANI. 
 
The formation of the Renewed BANI has resulted in two arbitration bodies going under the name 'BANI'. In order to differentiate between the two when choosing a forum for the administration and settlement of a dispute, Renewed BANI suggests defining BANI in an arbitration agreement or clause  as "a legal entity based on the Letter of Decree of Minister of Law and Human Rights of the Republic of Indonesia No. AHU-0064837.AH.01.07.Tahun 2016 dated 20 June 2016."
 
The Procedures

The Renewed BANI has published its own procedural rules. It provides for, among others, Med-Arb procedures, a sole arbitrator for disputes less than IDR 500,000,000 (equivalent to USD 38,500), procedures determinable by parties, third party joinders, definition of international arbitral awards, and the calculation of the 180-day arbitration period.
 
How can we help?
 
There is a dilemma concerning existing contracts which contain a BANI arbitration clause whether to elect the original BANI or Renewed BANI as the forum for arbitration. It remains to be seen how both bodies would rule in the event each party submits their case to the different bodies (e.g., one party to the original BANI and another party to the Renewed BANI), and how Indonesian courts would enforce their respective awards. Consequently, it is advisable to seek the advice of legal counsel.
 
We at DNFP and Hogan Lovells are well known for our arbitration practice and have one of the leading arbitration practices both in Asia and internationally. Our top-quality practice has acted in many of the region’s most significant disputes. We have vast arbitration experience under all of the major institutional arbitration rules and ad hoc arbitrations; and have advised on and acted in major arbitrations in numerous arbitral seats around the world. Hogan Lovells has one of the largest and most active arbitration practices in Asia (Global Arbitration Review's GAR 100 Survey 2016).

Contacts :

Chalid Heyder - Partner Indonesia : chalid.heyder@dnfp.com

Julia Nugroho - Senior Associate Indonesia : julia.nugroho@dnfp.com

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