Litigation In Indonesia

Overview

1. Describe the general organisation of the court system for civil litigation.

Indonesia

Indonesia is a unitary state with no federal-state court distinction. Judicial power is exercised by the Supreme Court and the courts beneath it, and by the Constitutional Court (constitutional and public law matters only).

Civil and commercial litigation falls within the courts of general jurisdiction. The hierarchy consists of the district court at first instance, the high court on appeal, and the Supreme Court for cassation and case review. Specialised courts include the commercial court (bankruptcy, PKPU and intellectual property) and the industrial relations court (employment disputes).

The 1945 Constitution guarantees judicial independence. Supreme Court justices are proposed by the Judicial Commission, selected by the House of Representatives and appointed by the president. Lower court judges are typically career judges recruited through civil service examinations, save for ad hoc judges appointed in specific courts (ie, labour court, corruption court and human rights court).

Indonesia follows the civil law tradition, does not employ juries, and does not formally adhere to binding precedent, though consistent Supreme Court decisions carry strong persuasive authority.

2. Give an overview of basic procedural principles that govern civil litigation in your jurisdiction.

Indonesia

Civil procedure is governed by the colonial-era Herziene Indonesisch Reglement (“HIR”) and Rechtsreglement voor de Buitengewesten (RBg), supplemented by Supreme Court regulations (Peraturan Mahkamah Agung or PERMA).

Key principles include that justice be administered in a simple, expeditious and low-cost manner, that hearings be public, and that both parties be given equal opportunity to be heard (audi et alteram partem).

A lawsuit is typically filed at the district court of the defendant's domicile, though exceptions apply. Before proceedings begin, parties must undergo mandatory mediation under PERMA No 1 of 2016. If mediation fails, the case proceeds through written pleadings (statement of defence, rejoinder and counter-rejoinder), then to the evidentiary phase. Indonesian law recognises five categories of evidence: documentary evidence, witness testimony, presumptions, admissions and oaths. The burden of proof rests on the party asserting a fact. Both parties then deliver closing submissions and the panel renders its judgment in a public hearing.

Indonesian civil procedure does not employ pre-trial discovery or disclosure of the kind found in common law jurisdictions.

3. Describe the general organisation of the legal profession.

Indonesia

The legal profession is governed by Law No. 18 of 2003 on Advocates. Indonesia operates a fused profession with no distinction between barristers and solicitors. All advocates have the same rights of audience before all courts throughout the country.

Admission requires a law degree, completion of a special advocacy education programme, passing the advocate bar examination, and a minimum two-year apprenticeship before being sworn in at the high court. The profession is regulated by advocates' organisations, principally the Indonesian Advocates Association.

Foreign lawyers may not practise Indonesian law or appear before Indonesian courts. They may be employed by Indonesian law firms in a limited advisory capacity, subject to applicable immigration and manpower regulations.

There are no specialised plaintiff or defendant bars. All advocates may represent either party across all areas of civil practice.

4. Give a brief overview of the political and social background as it relates to civil litigation.

Indonesia

Indonesian society values consensus, and many disputes are resolved informally before reaching the courts. Litigation remains a well-established mechanism for commercial disputes, though mandatory court-annexed mediation reinforces this cultural preference for settlement.

The caseload across all court levels exceeded three million cases in 2025, with the Supreme Court handling over 38,000 cases at a productivity rate of 99.54%. Indonesia would not, however, be described as highly litigious by international standards, with many commercial disputes channelled towards arbitration.

The government has supported court modernisation, including electronic filing systems and a streamlined simple claims procedure. Stakeholders are currently discussing the consolidation of fragmented civil procedural law into a single unified code. Class actions and citizen lawsuits exist but are not commonly used, and there is no established culture of professional or activist plaintiffs.

Jurisdiction

5. What are the sources of law and rules governing international jurisdiction in civil matters?

Indonesia

Indonesian law does not have a single, codified statute governing international jurisdiction in civil matters.

6. What are the criteria for determining the jurisdiction and venue of the competent court for a civil matter?

Indonesia

A civil lawsuit is generally filed at the district court of the defendant's domicile. Where there are multiple defendants, the claimant may choose any one of their domiciles. Some exceptions may apply, including disputes over immovable property, which may be filed where the property is located.

Parties may agree in a contract to designate a specific district court. Indonesian courts will generally respect such clauses. Where the defendant is foreign and has no domicile in Indonesia, the court may assert jurisdiction based on the location of the defendant's assets, the location of property in dispute or the place of performance of the obligation.

A defendant may raise a preliminary objection on jurisdictional grounds in its statement of defence, and the court must rule on this before proceeding to the merits.

7. Does your jurisdiction commonly attract disputes that have a nexus with other jurisdictions?

Indonesia

Indonesia attracts cross-border disputes due to significant foreign investment and multinational presence in sectors such as mining, energy, infrastructure and financial services.

Key tactical considerations: many commercial contracts with foreign parties contain arbitration clauses, which courts must respect; foreign court judgments are not enforceable, requiring fresh proceedings to be initiated in Indonesia; all proceedings are conducted in Indonesian with documents requiring certified translations; and while foreign parties need not legally engage Indonesian counsel, it is essential in practice.

8. How will a court treat a request to hear a dispute that is already pending before another forum?

Indonesia

Where the same dispute between the same parties is already pending before another Indonesian court, the defendant may raise a preliminary objection and typically the court will dismiss the later-filed claim. Indonesian courts will not decline jurisdiction merely because the same dispute is pending before a foreign court. However, where an arbitration agreement exists, the court must decline jurisdiction and refer the parties to arbitration.

9. How will the courts treat a dispute that is, or could be, subject to an arbitration clause or an agreement to arbitrate, including in interim proceedings?

Indonesia

Where a valid arbitration agreement exists, Indonesian courts must decline jurisdiction and refuse to hear the dispute.

10. May courts in your country review arbitral awards on jurisdiction?

Indonesia

Indonesian courts have limited grounds to review arbitral awards. Under Law No. 30 of 1999 on Arbitration and Alternative Dispute Resolution (Arbitration Law), a party may apply to the district court to annul a domestic arbitral award where the award was rendered on the basis of forged documents, a decisive document was concealed by the opposing party, or the award was procured through fraud.

For international arbitral awards, the Central Jakarta District Court may refuse recognition and enforcement on limited grounds, including where the award does not concern a commercial matter or where enforcement would be contrary to public policy.

11. Are anti-suit injunctions available?

Indonesia

Anti-suit injunctions are not available under Indonesian law.

12. Which entities are immune from being sued in your jurisdiction? In what circumstances? In what circumstances can creditors enforce a court judgment or arbitral award against a sovereign or a state entity?

Indonesia

Foreign states generally enjoy immunity from Indonesian courts for acts performed in their sovereign capacity, but may be subject to suit for commercial activities. There is no single statute governing sovereign immunity in Indonesia.

Government assets designated for public use are generally immune from seizure or execution. Enforcement of judgments or arbitral awards against a foreign sovereign or state entity in Indonesia is exceptionally difficult.

Procedure

13. How are proceedings commenced? To what extent will a court actively lead the proceedings and to what extent will the court rely on the parties to further the proceedings?

Indonesia

Proceedings are commenced by filing a lawsuit/statement of claim at the relevant district court, accompanied by payment of a court registration fee. The claim must identify the parties, set out the factual basis and state the relief sought. Upon registration, the chief justice assigns the case to a panel of judges, which schedules a first hearing and summons the defendant.

Indonesian civil procedure combines elements of both active judicial management and party-driven litigation. The parties bear primary responsibility for presenting their case, filing pleadings and submitting evidence. However, the presiding judge plays an active role in directing hearings, including examining factual and/or expert witnesses. This reflects the civil law principle that the judge is not merely a passive referee but has a duty to ascertain the truth within the framework presented by the parties.

14. What are the requirements for filing a claim? What is the pleading standard?

Indonesia

A claim must be filed in writing in the Indonesian language and must contain the identity of the parties (full name, address and, where applicable, the identity of their legal representative), a clear description of the factual basis of the claim, and the specific relief sought. A power of attorney must accompany the claim where the claimant is represented by counsel.

Indonesian civil procedure does not follow a notice pleading standard. The plaintiff is expected to set out the material facts and legal basis of the claim in sufficient detail. A claim that is unclear, internally contradictory or fails to state a proper legal basis may be declared inadmissible by the court. However, there is no requirement to attach supporting evidence at the filing stage; evidence is submitted during the evidentiary phase of proceedings.

15. What are the requirements for answering claims? What is the pleading standard?

Indonesia

The defendant files a written statement of defence in response to the claim. This may include preliminary objections challenging jurisdiction or admissibility, a substantive response to the claim, and a counterclaim against the plaintiff. The defendant is expected to address the claimant's arguments in sufficient detail but is not required to attach evidence at this stage. Following the statement of defence, the claimant files a rejoinder and the defendant a counter-rejoinder, after which the case moves to the evidentiary phase.

16. What are the rules regarding further briefs and submissions?

Indonesia

After the exchange of pleadings (statement of defence, rejoinder and counter-rejoinder), no further written submissions are permitted until closing submissions, which are filed after the evidentiary phase. The plaintiff may amend its claim before the defendant files its statement of defence; thereafter, amendments generally require the defendant's consent.

Amicus briefs, as understood in common law jurisdictions, are not a feature of Indonesian civil procedure. Indonesian law does, however, recognise formal third-party intervention mechanisms, namely voeging (intervention by a third party joining one of the existing parties), tussenkomst (intervention by a third party asserting its own independent interest in the dispute) and vrijwaring (a warranty or indemnity claim brought by the defendant against a third party). These mechanisms serve a distinct function from amicus submissions, as intervening parties become full participants in the proceedings with their own rights and obligations.

17. To what degree are civil proceedings made public?

Indonesia

Civil hearings are conducted in public as a matter of constitutional principle, and judgments are delivered in open court. Members of the public may attend hearings, though the court may order a closed session in exceptional circumstances such as divorce cases.

Court judgments are published on the Supreme Court's online decisions directory and are publicly accessible. Parties are generally not anonymised in civil judgments. Court filings themselves (such as pleadings and evidence) are not publicly available and may only be accessed by the parties or their counsel.

Photography and television cameras are not generally permitted in courtrooms without the court's prior approval.

Pretrial settlement and ADR

18. Will a court render (interim) assessments about any factual or legal issues in dispute? What role and approach do courts typically take regarding settlement? Are there mandatory settlement conferences between the parties at the outset of or during the litigation?

Indonesia

Indonesian courts do not issue interim or preliminary assessments on the merits of a dispute. There is no mechanism equivalent to summary judgment, preliminary rulings or advisory opinions, and judges generally do not indicate their views on the likely outcome before final judgment.

However, judges are required to encourage settlement at all stages of proceedings. Under Article 130 of the HIR and article 154 of the RBg, the court must first attempt reconciliation at the initial hearing. If the parties reach agreement, it is recorded in a Settlement Deed, which has the same force as a final and binding judgment (res judicata), is immediately enforceable, and is not subject to appeal, cassation or review. It may only be challenged through a separate action on limited grounds such as fraud, duress or violation of public order.

There are no court-managed settlement conferences outside the mandatory mediation framework.

19. Is referral to mediation or another form of ADR an option, or even mandatory, before or during the litigation?

Indonesia

Mediation is mandatory in Indonesian civil litigation. Supreme Court Regulation No. 1 of 2016 on Mediation Procedures in Courts (PERMA 1/2016) requires all civil cases filed before a district court to undergo court-annexed mediation as a precondition to trial, and failure to do so constitutes a procedural defect.

The obligation applies broadly, subject to limited exceptions (including commercial court and industrial relations matters, arbitral award challenges, small claims and certain specialised proceedings). At the first hearing, the presiding judge must direct the parties to appoint a certified mediator (or appoint one if they cannot agree). Mediation is conducted within 30 working days (extendable once), is confidential, and may include caucus sessions and remote participation.

Parties must participate in good faith. Under PERMA 1/2016, bad faith includes, among others, repeated absence without valid reason, failure to submit or respond to a case summary, or refusal to sign an agreed settlement. Sanctions may include dismissal of the claim (for claimants) or cost penalties (for defendants). If settlement is reached, it may be recorded as a Settlement Deed with full enforceability as a final judgment; otherwise, the proceedings continue.

Settlement remains possible at all stages, including appeal and cassation, and any agreement may be endorsed as a Settlement Deed.

Interim relief

20. What are the forms of emergency or interim relief?

Indonesia

Indonesian civil procedure recognises interim relief in the form of interim decisions (the Interim Decision), governed by article 185(1) of the HIR and article 196 of the RBg. An Interim Decision is an interlocutory order issued during proceedings and does not resolve the merits; it forms part of the final judgment.

Four categories are recognised. A preparatory order regulates procedural matters. An interlocutory order facilitates examination (eg, document production or site inspection). An incidental order addresses interruptions or procedural incidents. A provisional order provides temporary relief pending final judgment and is most analogous to an interlocutory injunction.

The most common form in practice is provisional attachment, governed by article 227 HIR and Article 261 RBg, which preserves assets to secure enforcement of a future judgment. A related form, revindicatory attachment under article 226 HIR, applies where ownership of specific movable property is disputed.

Interim relief is only available after a claim is filed, is not granted ex parte, and is limited to assets within Indonesia. State assets are exempt from attachment under article 50 of Law No. 1 of 2004 on the State Treasury.

21. What must a petitioner show to obtain interim relief?

Indonesia

An application for interim relief is typically filed within the statement of claim or during proceedings and examined at an incidental hearing with both parties heard.

For provisional attachment, the applicant must show well-founded grounds that the defendant is likely to dissipate or conceal assets, and that the claim appears prima facie valid. The court must ensure the assets belong to the defendant, are proportionate to the claim, and that movable assets are prioritised. Supreme Court Circular Letter No. 5 of 1975 requires proportionality between the value of attached assets and the claim.

For provisional orders generally, the applicant must demonstrate urgency and the need to protect a legitimate interest without prejudging the merits. Indonesian law does not apply a balance of convenience test, nor require security as a condition, although unjustified attachment may give rise to liability in damages.

Decisions

22. What types of decisions (other than interim relief) may a court render in civil matters?

Indonesia

Indonesian civil procedural law recognises two broad categories of court decision: the Interim Decision, discussed above, and the final judgment. The final judgment is the decision rendered at the conclusion of the examination of the merits, by which the court resolves and terminates the dispute at the relevant level of proceedings.

An ex-Indonesian supreme court judge, in his seminal work, analysed that final judgments are classified according to their substantive character into three types. A declaratory judgment declares or affirms the existence of a particular legal state or relationship, without imposing any obligation on the defendant. A constitutive judgment creates, modifies or extinguishes a legal relationship or status; a divorce judgment, for example, is constitutive in nature, as it eliminates the legal bond between the parties and brings a new legal status into existence. A condemnatory judgment orders the losing party to perform a specific act, refrain from an act, or pay compensation. It is this type of judgment that carries executory force and can be enforced through compulsory execution proceedings. In practice, a single judgment may combine two or more of these characters: a condemnatory order, for instance, must generally be preceded by a declaratory or constitutive finding that establishes the legal basis upon which the condemnation rests.

Final judgments are also classified by their outcome. The court may grant the claim in full or in part, reject the claim on the merits, or declare the claim inadmissible on formal grounds – for instance, where the claim is obscure, was filed before the wrong court, or was brought by a party without standing. A judgment dismissing the claim on formal grounds does not preclude the claimant from refiling a properly formulated action.

23. At what stage of the proceedings may a court render a decision? Are motions to dismiss and summary judgment available?

Indonesia

Final judgment is rendered after the evidentiary phase, typically following closing submissions. Indonesian law does not provide for summary judgment or motions to dismiss on the merits.

Preliminary objections, including jurisdictional or admissibility challenges, may be decided earlier by Interim Decision, though courts often defer such rulings to the final judgment.

24. Under which circumstances will a default judgment be rendered?

Indonesia

A default judgment (putusan verstek) may be entered under article 125 HIR and article 149 RBg where the defendant fails to appear despite proper summons. In multi-defendant cases, article 127 HIR requires re-summons before proceeding.

The court must still assess the claim’s legal basis and may grant, partially grant, reject or declare it inadmissible.

The defendant may file opposition (verzet) within 14 days of service or eight days after an enforcement notice. A valid verzet nullifies the verstek judgment and triggers a re-examination. A second default precludes further opposition, leaving appeal as the only remedy.

25. How long does it typically take a court of first instance to render a decision?

Indonesia

Supreme Court Circular Letter No. 2 of 2014 provides guidelines of five months for district courts and three months for high courts, though these are not binding and often exceeded.

In practice, first-instance proceedings typically take five to 12 months, with complex or cross-border cases taking longer. Simple claims under Supreme Court Regulation No. 2 of 2015 must be resolved within 25 working days. Appeals often exceed the three-month guideline, while cassation may take 12 months or more. A case proceeding through all levels may take three to five years.

Parties

26. How can third parties become involved in proceedings?

Indonesia

Third-party participation is governed by article 279 of the Rules on Civil Procedure (RV), which permits any person with an interest in a pending civil dispute to join or intervene. Three forms are recognised.

First, voeging allows a third party to join on the side of either the claimant or defendant to protect a direct legal interest, without asserting an independent claim. The applicant must demonstrate a specific right to be protected and a sufficiently close connection to the subject matter.

Second, tussenkomst allows a third party to intervene independently against both parties to assert its own claim. The intervener must show a close legal connection to the dispute, either through a legal relationship with the parties or because the subject matter directly affects its interests.

Third, vrijwaring, governed by articles 70–76 RV, allows a defendant to bring in a third party to bear or share liability (eg, a supplier in a defective goods claim). The request is typically raised in the statement of defence or rejoinder.

In all cases, admission is subject to an Interim Decision and must be made before the evidentiary phase. Once admitted, the third party becomes a full party and is bound by the judgment. Under article 1917 of the Indonesian Civil Code, res judicata applies only to parties to the proceedings, such that non-parties may bring separate actions. However, failure to include a necessary party may result in the claim being declared inadmissible.

Fact-Finding and Evidence

27. Describe the rules of fact-finding in your jurisdiction.

Indonesia

Indonesian civil proceedings are governed by the principle of formal truth), as reflected in article 163 of the HIR and article 1865 of the Indonesian Civil Code. The court determines facts based only on what is asserted and proven by the parties and does not investigate beyond the pleadings.

The burden of proof follows the principle of actori incumbit probatio: the party asserting a right or fact must prove it. In practice, the claimant proves its claim and the defendant its defence. The court may adjust the burden where strict allocation would be inequitable.

28. Will a court take or initiate the taking of evidence or will it rely on the parties to request the taking of evidence and to present it?

Indonesia

Evidence-taking is primarily party-driven. Each party presents its own documents, witnesses and experts during the evidentiary phase.

The court may, however, take a limited active role. Under article 153 HIR, it may order a site inspection, and under article 154 HIR, appoint an expert, either on application or ex officio. Costs are typically borne by the requesting party or included in court fees.

29. Is an opponent obliged to produce evidence that is harmful to it in the proceedings? Is there a document disclosure procedure in place? What are the consequences if evidence is not produced by a party?

Indonesia

Indonesian law does not recognise pre-trial discovery or general disclosure obligations. Parties are not required to produce adverse documents.

Under article 137 HIR, a party may request the court to order production of a specific document referred to in proceedings, but this is limited and case-specific. There is no general duty to disclose.

There is no formal doctrine of adverse inference, although the court may consider non-production in assessing credibility and evidentiary weight.

30. Please describe the key characteristics of witness evidence in your jurisdiction. Is witness preparation allowed?

Indonesia

Witness testimony is a recognised form of evidence under article 164 HIR and article 1866 of the Civil Code. Witnesses testify orally under oath before the court, and each party is responsible for their attendance.

Article 145 HIR excludes certain persons, including close family members, spouses, minors and persons of unsound mind. Witnesses must testify on matters within personal knowledge and may not give opinion evidence. The court leads the examination, with questions from the opposing party put through the judge.

There are no formal rules on witness preparation, though false testimony is prohibited. The court assesses credibility freely, subject to the rule unus testis nullus testis (a single uncorroborated witness is insufficient).

31. Who appoints expert witnesses? What is the role of experts?

Indonesia

Expert evidence is governed by article 154 HIR and articles 215–229 of the RV. Although not one of the five formal categories of evidence under article 164 HIR and article 1866 of the Civil Code, expert opinion serves to supplement other evidence.

Experts may be appointed by the court ex officio or upon application, or introduced by the parties. The court is not bound by expert opinion (article 154(2) HIR) and may disregard it if it is inconsistent with other evidence. Disqualifications under article 145 HIR apply equally to experts.

32. Can parties to proceedings (or a party's directors and officers in the case of a legal person) act as witnesses? Can the court draw negative inferences from a party's failure to testify or act as a witness?

Indonesia

Parties and their representatives are not treated as witnesses. Their statements fall within the category of admissions under article 164 HIR. Admissions made in court constitute binding proof under article 174 HIR and article 1925 of the Civil Code.

While parties may make statements, these carry limited evidentiary weight as they are interested. Indonesian law does not formally recognise adverse inference from silence, though the court may consider conduct and credibility.

33. How is foreign law or foreign-language documentation introduced into the proceedings and considered by the courts?

Indonesia

Indonesian courts apply Indonesian law as lex fori. A party relying on foreign law must prove its content as a matter of fact, typically through expert evidence or authoritative materials.

All documents must be in Indonesian or accompanied by a certified translation by a sworn translator, pursuant to Law No. 24 of 2009. Foreign documents may require legalisation or apostille. Documents without proper translation may be disregarded or given reduced weight.

34. What standard of proof applies in civil litigation? Are there different standards for different issues?

Indonesia

The standard of proof follows the principle of formal truth, under which the court assesses whether a party has sufficiently proven its case based on recognised evidence.

In practice, this corresponds to a balance of probabilities. Certain evidence carries higher weight: authentic deeds constitute perfect proof under article 1870 of the Civil Code, while private deed has equivalent force if acknowledged. Witness testimony and presumptions are freely evaluated, subject to unus testis nullus testis.

The same standard applies across all issues in civil proceedings.

Appeals

35. What are the possibilities to appeal a judicial decision? How many levels of appeal are there?

Indonesia

Under Indonesian law, a judicial decision may generally be challenged through a multi-tiered appellate system.

In general civil cases, the available remedies are:

• appeal to the High Court against a District Court decision;
• Cassation to the Supreme Court against the High Court decision; and
• Judicial Review, which is an extraordinary legal remedy available on limited statutory grounds (eg, discovery of new evidence, conflicting judgments, or fundamental legal error).

Accordingly, there are generally two levels of ordinary legal remedy (ie, appeal and cassation), followed by one extraordinary remedy (ie, judicial review).

For certain specialised proceedings, the applicable appellate process may differ. For instance, in labour disputes, the appeal stage is generally bypassed, and the case proceeds directly to cassation before the Supreme Court.

36. What aspects of a lower court's decisions will an appeals court review and by what standards?

Indonesia

The scope and standard of review in Indonesia depend on the level of appeal. At the appeal stage, the High Court may reassess both factual and legal aspects of the case. The appellate court is not strictly bound by the lower court’s findings and may re-evaluate evidence as well as legal reasoning in full.

At the cassation stage, the Supreme Court’s review is generally limited to questions of law. This includes examining whether there has been an incorrect application or interpretation of law, procedural irregularities, or an excess of jurisdiction by the lower courts. As a general rule, the Supreme Court does not re-examine factual findings, except where there is a clear misapplication of law in the assessment of those facts.

Judicial review constitutes an extraordinary remedy, and its scope is strictly limited to specific statutory grounds, such as the discovery of new evidence (novum), conflicting court decisions, or manifest judicial error. It does not amount to a full rehearing of the case.

37. How long does it usually take to obtain an appellate decision?

Indonesia

The duration of appellate proceedings in Indonesia varies depending on factors such as case complexity, court workload, and administrative processes. In general, an appeal may take approximately six to eight months from submission to decision. Cassation proceedings typically take around six to 12 months, although in practice they may extend beyond this timeframe. Judicial review proceedings also generally take eight to 12 months or longer, depending on the circumstances of the case.

For certain specialised courts, such as the Commercial Court, statutory timelines may be shorter. However, in practice, the actual duration may still vary due to procedural and administrative factors.

Role of Domestic Courts In Arbitration Matters

38. In which conditions does your domestic arbitration law apply? Does it apply equally to purely domestic and international arbitrations, and to commercial and investor-state arbitrations?

Indonesia

Arbitration in Indonesia is primarily governed by the Arbitration Law.

Distinctions between domestic and international arbitration under the Arbitration Law arise particularly at the recognition and enforcement stage, where foreign arbitral awards are subject to additional requirements (e.g., recognition by the Central Jakarta District Court).

The Arbitration Law is primarily designed for commercial arbitration. It does not specifically regulate investor-state arbitration, which is typically governed by international treaties (eg, bilateral investment treaties) and institutional rules (eg, ICSID Convention), although Indonesian courts may still play a role at the enforcement stage depending on the applicable regime.

39. Give an overview of instances in which state courts come into play in domestic and international arbitration proceedings.

Indonesia

Although arbitration is based on the principle of minimal court intervention, Indonesian courts play several important supporting and supervisory roles in both domestic and international arbitration proceedings.

At the pre-arbitration stage, courts may be involved in declining jurisdiction where a valid arbitration agreement exists and, in certain circumstances, may assist in the appointment of arbitrators if the parties fail to agree.

Following the issuance of an arbitral award, courts play a central role in recognition and enforcement, including issuing writs of execution (exequatur) for both domestic and foreign arbitral awards. Courts are also competent to hear applications for annulment (setting aside) of domestic arbitral awards on limited statutory grounds as provided under the Arbitration Law.

40. Describe the rules governing recognition and enforcement of arbitral awards in your jurisdiction. To what extent do domestic courts review arbitral awards on the substance?

Indonesia

The recognition and enforcement of arbitral awards in Indonesia are governed by the Arbitration Law and, for foreign arbitral awards, by Indonesia’s accession to the New York Convention.

For domestic arbitral awards, the award must first be registered with the relevant District Court. Following such registration, if the losing party does not voluntarily comply with the award, the prevailing party may then apply to the court for enforcement, upon which the court may issue an enforcement order.

For foreign arbitral awards, registration and enforcement must be sought through the Central Jakarta District Court, which will examine whether the award satisfies formal requirements, including that:

• the award originates from a country that has a reciprocity relationship with Indonesia;
• the dispute falls within the scope of commercial law; and
• enforcement does not violate Indonesian public policy.

Indonesian courts do not review the merits or substance of arbitral awards. The review is limited to formal and procedural aspects, including compliance with statutory requirements and public policy considerations. Similarly, applications to annul domestic arbitral awards are restricted to specific grounds, such as the submission of falsified documents, discovery of decisive new evidence (novum), or fraud committed during the proceedings.

Special proceedings

41. Are class actions available?

Indonesia

Yes, class actions are recognised in Indonesia. Class actions are generally available in civil proceedings, particularly in cases involving consumer protection, environmental claims and other matters where a large number of parties suffer similar harm arising from the same facts or legal basis.

A class action may be initiated by one or more representative plaintiffs on behalf of a group (class), provided certain requirements are met, including: (1) commonality of facts and legal grounds; (2) a sufficiently large number of class members such that individual claims would be impractical; and (3) adequacy of representation.

The court will first assess whether the case qualifies as a class action. If certified, the proceedings will continue on a representative basis, and notice will be given to class members, who may opt out if they wish to pursue individual claims.

42. Are derivative actions available?

Indonesia

Yes, derivative actions are recognised under Indonesian law, particularly in the corporate context pursuant to Law No. 40 of 2007 on Limited Liability Companies (as amended).

Shareholders representing at least one-tenth (of the total voting shares may file a claim on behalf of the company against members of the board of directors and/or board of commissioners for losses caused by their fault or negligence. Such actions are brought in the name of the company, with the shareholders acting as representatives.

Derivative actions are typically used where the company itself fails or refuses to take action against its management. In such cases, the court will assess whether the claim satisfies the statutory threshold and whether there is a valid basis to hold the directors or commissioners liable.

43. Are fast-track proceedings available?

Indonesia

Indonesian law does not formally recognise a general “fast-track” procedure in civil litigation comparable to certain common law jurisdictions. However, there are expedited procedures in specific types of proceedings.

For example, commercial court proceedings (eg, bankruptcy and suspension of debt payment obligations (PKPU)) are subject to strict statutory timelines, with relatively short periods for examination and decision. Similarly, small claims lawsuits provide a streamlined procedure for claims of up to 500 million rupiah, with simplified evidentiary rules and shorter timelines.

These mechanisms are designed to provide more efficient dispute resolution, although their availability depends on the nature and value of the claim.

44. Is it possible to conduct proceedings in a foreign language?

Indonesia

Court proceedings in Indonesia must be conducted in the Indonesian language. However, limited use of foreign languages may be permitted in certain circumstances, such as the submission of documents in a foreign language, provided that an official Indonesian translation is submitted. Additionally, foreign witnesses or experts may provide testimony in a foreign language with the assistance of a sworn interpreter.

Accordingly, while foreign languages may be used in a limited and supporting capacity, the official language of proceedings remains Bahasa Indonesia.

Effects of judgment and enforcement

45. What legal effects does a judgment have?

Indonesia

A final and binding judgment has binding legal force upon the parties to the dispute and their legal successors. As a general rule, judgments are subject to the principle of relativity, meaning they bind only the parties involved in the proceedings and do not create direct legal obligations for third parties.

Indonesian law also recognises the principle of res judicata (ne bis in idem), whereby a matter that has been finally adjudicated between the same parties, involving the same object and legal grounds, cannot be relitigated in subsequent proceedings.

In subsequent proceedings, the operative part of the judgment is binding. While the court’s reasoning, including findings of fact and application of law, does not have formally binding precedential value, it may carry persuasive authority, particularly where it forms the basis of the decision.

As a general rule, judgments do not bind third parties. However, in certain circumstances, judgments may have indirect or factual implications for third parties (eg, where they relate to status, property rights, or corporate matters), although such effects do not amount to direct legal binding force.

46. What are the procedures and options for enforcing a domestic judgment?

Indonesia

Enforcement of a domestic judgment in Indonesia is carried out through the District Court having jurisdiction over the respondent or the relevant assets.

Once a judgment has become final and binding, the prevailing party may apply to the court for enforcement. The enforcement process typically involves the following steps:

• application for enforcement filed by the prevailing party;
• warning issued by the court, requiring the losing party to voluntarily comply within a specified period; and
• if no compliance is made, the court may proceed with compulsory enforcement measures, including (1) seizure of assets and/or (2) public auction of seized assets through the state auction office (KPKNL).

The process is conducted under court supervision and may involve coordination with relevant authorities, depending on the nature of the assets.

47. Under what circumstances will a foreign judgment be enforced in your jurisdiction?

Indonesia

Indonesia does not recognise or directly enforce foreign court judgments. However, a foreign judgment may be used as evidentiary support in new proceedings before an Indonesian court. In practice, the party seeking enforcement would typically need to relitigate the claim in Indonesia, with the foreign judgment serving as supporting evidence of the underlying claim.

This approach differs from the enforcement of foreign arbitral awards, which may be recognised and enforced in Indonesia, subject to statutory requirements.

Costs and Funding

48. Will the successful party's costs be borne by the opponent?

Indonesia

Under Indonesian civil procedure, the general rule is that the unsuccessful party bears the court costs, as determined in the operative part of the judgment. These costs typically include court administrative fees, registration fees and certain procedural expenses.

However, recoverable costs are generally limited in scope and do not fully cover legal fees incurred by the successful party. Attorney fees are typically not awarded in full, unless specifically claimed and granted by the court, which is relatively uncommon in practice.

Accordingly, while the losing party may be ordered to bear court costs, the successful party will often still bear a substantial portion of its own legal expenses.

49. May a party apply for legal aid to finance court proceedings? What other options are available for parties who may not be able to afford litigation?

Indonesia

Yes, Indonesian law provides for legal aid for eligible parties. Under Law No. 16 of 2011 on Legal Aid, individuals who meet certain financial criteria may obtain free legal assistance (pro bono) from accredited legal aid institutions.

In addition, courts may grant fee waivers for court costs upon application by financially disadvantaged parties, subject to verification of eligibility.

Other practical options include engaging lawyers on flexible fee arrangements (eg, staged payments or reduced fees) or seeking assistance from non-governmental organisations or legal clinics, depending on the nature of the dispute.

50. Are contingency fee arrangements permissible? Are they commonly used?

Indonesia

Contingency fee arrangements are not expressly regulated under Indonesian law, but they are generally considered permissible in practice, subject to professional ethics and agreement between the lawyer and the client.

Such arrangements are less common compared to fixed or hourly fee structures, particularly in commercial disputes. In practice, lawyers may adopt hybrid arrangements, combining a base fee with a success-based component, rather than relying solely on pure contingency fees.

51. Is third-party funding allowed in your jurisdiction?

Indonesia

Third-party funding is not specifically regulated under Indonesian law. There is no express prohibition, but the absence of a clear legal framework means that its use remains limited and not yet common in practice.

Where used, arrangements must still comply with general legal principles, including contract law and public policy, as well as professional ethical obligations of lawyers (eg, independence and avoidance of conflicts of interest). In particular, excessive control by a third-party funder over the conduct of litigation may raise enforceability or ethical concerns.

As a result, third-party funding remains a developing area in Indonesia, with greater prevalence in international arbitration contexts rather than domestic court litigation.

52. Are there fee scales lawyers must follow? Are there upper or lower limits for fees charged by lawyers in your jurisdiction?

Indonesia

There are no mandatory statutory fee scales governing legal fees in Indonesia. Lawyer fees are generally determined based on an agreement between the lawyer and the client, taking into account factors such as complexity, time and value of the matter.

While professional organisations, such as the Indonesian Advocates Association, may issue guidelines or recommended fee structures, these are not legally binding and do not impose strict upper or lower limits.

In practice, legal fees vary widely depending on the nature of the work, the experience of the lawyer, and the type of client engagement.

Mahareksha Singh Dillon, Talitha A Ekadhani, Bagas Ananta and Andhika Farhan Mahadi
SSEK Law Firm