A Tale Of Two Countries: Comparing Indonesian And Australian Legal Systems On Public Policy In Recognition Of Foreign Arbitral Awards

Nur Gemilang Mahardika, S.H., LL.M

Universitas Islam Indonesia

Lihat

The whole scheme of international commercial arbitration would only be fruitful if it is supported by the court system, which makes it the most interesting feature of this particular field as it touches various legal systems across jurisdictions. Each and every one of these legal systems is undeniably influenced by: the personality, values and norms upheld by the nation in which the legal system develops; the national interests; as well as the nation’s degree of development and economic capacity. Different jurisdictions – particularly the developed versus the developing ones – therefore render different attitudes in recognition (hence enforcement) of foreign arbitral awards in their territory. Public policy remains the favourite weapon wielded by national courts whenever it is deemed vital not to recognise a certain award. The degree of necessity ranges from the protection of national interests; to the act of solidarity towards the State-Owned Entities; to falling victim to political tensions pressing the courts from all directions. By using normative method with comparative and statutory approaches, this
paper aims to compare how far and deep does the public policy issue influence the recognition of foreign arbitral awards in Indonesian regime and its Australian counterpart. The results present analysis on whether Indonesia should adopt the Australian approach; and if so, in what way would the adoption be suitable with the Indonesian legal environment; what are the advantages and the disadvantages; the challenges to overcome; what should be casted away and what should be further developed.
Keywords: Australia; Enforcement; Foreign Arbitral Awards; Indonesia; International Commercial Arbitration; Recognition

Daftar Pustaka

Australian Legislation
International Arbitration Act 1974 (Cth)

Indonesian Legislations

Undang-Undang No 28 Tahun 2014 tentang Hak Atas Kekayaan Intelektual [Law No 28 of 2014
on Intellectual Property Rights] (Indonesia) [author’s trans]
Undang-Undang No 7 Tahun 2014 tentang Perdagangan [Law No 7 of 2014 on Trade]
(Indonesia) [author’s trans]
Undang-Undang No 24 Tahun 2009 tentang Bendera, Bahasa, Lambang Negara dan Lagu
Kebangsaan [Law No 24 of 2009 on Flag, Language, State’s Coat of Arms and
National Anthem] (Indonesia) [author’s trans]
Undang-Undang No 25 Tahun 2007 tentang Penanaman Modal [Law No 25 of 2007 on
Investment] (Indonesia) [author’s trans]
Undang-Undang No 30 Tahun 1999 tentang Arbitrase dan Alternatif Penyelesaian Sengketa [Law
No 30 of 1999 on Arbitration and Alternative Dispute Resolution] (Indonesia)
[author’s trans]
Undang-Undang No 8 Tahun 1995 tentang Pasar Modal [Law No 8 of 1995 on Capital Market]
(Indonesia) [author’s trans]
Peraturan Mahkamah Agung Republic Indonesia No 1 Tahun 2016 tentang Prosedur Mediasi di Peradilan [Supreme Court of the Republic of Indonesia Regulation No 1 of 2016 on Court Mediation Procedure] (Indonesia) [author’s trans]
Peraturan Mahkamah Agung Republic Indonesia No 1 Tahun 1990 tentang Tata Cara Pelaksanaan
Putusan Arbitrase [Supreme Court of the Republic of Indonesia Regulation No 1 of
1990 on the Methods for the Execution of the Foreign Arbitral Awards] (Indonesia)
art 1 [author’s trans]
Reglement of de Rechtsvordering/Rv

International Law Materials

Agreement on Economic Cooperation, The Netherlands-Indonesia, signed 7 July 1968, 1155
UNTS 243 (entered into force 17 July 1971)
New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, signed 10
June 1958, 330 UNTS 38 (entered into force 7 June 1959)
United Nations Commissions on International Trade Law (UNCITRAL) Model Law

International Tribunal Decisions

ED & F Man (Sugar) Ltd v Yani Haryanto
Karaha Bodas Company LLC v Perusahaan Pertambangan Minyak dan Gas Bumi Negara and PT
PLN (Persero) (Award, Yves Derains, Prof Pierro Bernardini and Prof Ahmed S El
Kosheri, 18 December 2000)

Australian Court Decisions

Australian Broadcasting Corporation v Lenah Game Meats Pty Ltd (2001) 208 CLR 199
Castel Electronics Pty Ltd v TCL Air Conditioner (Zhongshan) Co Ltd [2012] FCA 1214
Grosse v Purvis (2003) Aust Torts Reports 81
Jane Doe v Australian Broadcasting Corporation & Others [2007] VCC 281
Resort Condominiums International v Bolwell (1993) 118 ALR 655
Royal Women’s Hospital v Medical Practitioners Board (2006) 15 VR 22
Traxys Europe SA v Balaji C Industry Pvt Ltd (No. 2) (2012) 201 FCR 535
Uganda Telecom Ltd v Hi-Tech Telecom Pty Ltd (2011) 277 ALR 415
Victoria Park Racing & Recreation Grounds Co Ltd v Taylor (1937) 58 CLR 479
Plaintiff S 157/2002 v Commonwealth of Australia (2003) 211 CLR 476

Indonesian Court Decisions

Astro Nusantara Bv et al v PT Ayunda Primamitra, Supreme Court of the Republic of
Indonesia, Case No. 01 K/Pdt.Sus/2010
Bankers Trust v PT Mayora Indah, Supreme Court of the Republic of Indonesia, Case No 02
K/Ex’r/Arb.Int/Pdt/2000
PT Asuransi Jasa Indonesia (Persero) v Dexia Bank SA [2007] 1 SLR (R) 597
PT Nizwar v Navigation Maritime Bulgare, Supreme Court of the Republic of Indonesia, Case
No MA: No. 2944 K/Pdt/1983

Books

Domke, M, The Law and Practice of Commercial Arbitration (Callaghan & Company, 1968)
Glanville, ATH Smith, Learning the Law (Sweet & Maxwell, 2006)
Lawrance, D M, A Treatise on the Law and Practice of Arbitrations & Awards for Surveyors,
Valuers, Actioneers and Estate Agents (The Estates Gazette Limited, 1959)
Longdong, Tineke Louise Tuegeh, Asas Ketertiban Umum dan Konvensi New York 1958 [The
Public Order and the 1958 New York Convention] (PT Citra Aditya Bhakti, 1998)
Newcombe, Andrew, Lluis Paradell, Law and Practise of Investment Treaties (Kluwer, 2009)
Redfern, A, M Hunter, The Law and Practice of International Commercial Arbitration (5th ed,
2009)
Redfern, A, M Hunter, Law and Practice of International Commercial Arbitration (Sweet &
Maxwell, 1991)
Subekti, Arbitrase Perdagangan [Commercial Arbitration] (Binacipta, 1981)
Sutiyoso, Bambang Interpretatsi Putusan Kontrak Bisnis dan Problematikanya di Indonesia
[Interpretation of Commercial Contract Decisions and Their Problematics in
Indonesia] (Universitas Islam Indonesia Press, 2016)

Journal Articles & Papers

Craven, Greg, ‘Reflection on Judicial Activism: More in Sorrow than in Anger’ (Paper
presented at the 9th Samuel Griffith Society Conference, Perth, 24-26 October 1997)
French, Robert, ‘Judicial Activism – and the Boundaries of Judicial Roles’ (Paper presented
at LAWASIA Conference, Ho Chi Minh City, 10 November 2009) 6
French, Robert, ‘Judicial Activists – Mythical Monsters?’ (2008) 12 Southern Cross University
Law Review 59
Heydon, Dyson, ‘Judicial Activism and the Death of Rule of Law’ (2003) 47 Quadrant 9
Justice Kerr, “International Arbitration v Litigation” [1980] Journal of Business Law 164
Kmiec, Keenan, “The Origin and Current Meaning of ‘Judicial Activism’” (2004) 92
California Law Review 1441
Pryles, Michael, ‘Australia’ in Global Legal Group, International Comparative Legal Guide to
International Arbitration 2004 (2004)
Root, Elihu ‘The Basis of Protection to Citizen’s Residing Abroad’ (1910) 4 American Journal
of International Law 517
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International Law Journal 427
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26(2) Singapore Academy of Law Journal 562
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(1971) 109
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Miscellaneous

New York Convention 1958 Guide, Article V (2) (b): Substantinve Public Policy and Procedural
Public Policy (as of 20 February 2019) New York Convention 1958 Guide <
http://newyorkconvention1958.org/index.php?lvl=cmspage&pageid=10&menu=
626&opac_view=-1#35 >
New South Wales Government, Types of Alternative Dispute Resolution (14 August 2015)
New South Wales Government <
http://www.courts.justice.nsw.gov.au/Pages/cats/courtguide/alternate_dispute
_resolution/types_adr/types_adr.aspx >