Referred to as the "midnight clause," arbitration provisions are often negotiated hastily just before finalizing agreements, with little regard for precise wording. This oversight frequently leads to crucial components being omitted from arbitration clauses, making them invalid.

To prevent unnecessary disputes down the line, Dentons HPRP's lawyers, Gading Sanyjaya (Partner) and Indana Nurfahmi (Senior Associate) offer a brief overview of defective arbitration clauses within the Indonesian legal context. By examining court precedents and stressing the importance of addressing these issues proactively, businesses can mitigate the risk of future conflicts.

Full article can be downloaded here.

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