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Alternative Dispute Resolution (ADR) including mediation and arbitration is becoming increasingly prevalent in Denpasar, Indonesia. These out-of-court settlement mechanisms ensure timely resolution of disputes, maintain confidentiality and preserve relationships. They are an integral part of the Indonesian legal system, incorporated into civil procedure code and governed by Law No. 30/1999 on Arbitration and Alternative Dispute Resolution. They are typically used in commercial disputes, family law cases, labour disputes and other civil matters.
While ADR processes like mediation and arbitration are designed to be less formal, having a lawyer with specific knowledge in ADR can be beneficial. In situations like complex commercial disputes, divorce settlements, property disputes or construction disputes, their expertise may help better represent your interests. They can provide guidance during negotiations, prepare necessary paperwork, explain potential implications, and make sure your rights are protected throughout the process.
Indonesia Law No. 30/1999 governs ADR Mediation & Arbitration. It states that disputing parties can freely determine the procedure for settlement of their dispute. In arbitration, the arbitrator's decision is final and binding. Mediation, however, is mainly a negotiation process facilitated by a mediator and the agreement depends on the consensus of parties involved. The Indonesian National Board of Arbitration (BANI) is the main institutional body providing arbitration services in Denpasar.
No, once you agree to arbitration, the decision is final and binding, and there is no appellate review of an arbitral award in Indonesia.
The ADR procedures in Denpasar maintain strict confidentiality. Information disclosed in the process of mediation or arbitration may not be revealed outside the process.
The length of ADR processes varies depending on the complexity of the dispute, but typically it’s quicker than court proceedings in Indonesia.
Yes, both parties involved in the dispute are free to choose their own mediator or arbitrator or may ask BANI or any another trusted institution to appoint one.
ADR methods are suitable for a wide range of disputes including contract disputes, property disputes, commercial conflicts, labor issues and family law cases.
Indonesian National Board of Arbitration (BANI) Supreme Court of Republic of Indonesia (Mahkamah Agung) Directorate General of Intellectual Property (DGIP) The Indonesian Advocates Association (PERADI) Ministry of Law and Human Rights (Kementerian Hukum dan HAM)
If you find yourself in need of legal assistance in ADR, consider hiring a lawyer who specializes in ADR. They can help you navigate the process, protect your interests, and achieve a beneficial outcome. Remember, it is crucial to discuss confidentiality, costs, and the timeline upfront with your lawyer.
