On 3 December 2024, Indonesia’s Constitutional Court rendered Judgment No. 100/PUU-XXII/2024, affirming the territoriality concept in defining international arbitral awards in Indonesia. This article examines the framework of international arbitral awards before and after the judgment, highlighting how Indonesia’s Constitutional Court provides greater clarity by refining Article 1(9) of Indonesia’s Arbitration Act. It further explores the concept of the arbitral seat under Indonesia’s Arbitration Act and examines prevailing theories regarding the location where an arbitral award is deemed to be rendered.

Authored by experienced legal practitioners at Dentons HPRP – Sartono (Managing Partner) and Yonathan Aji Pamungkas (Associate) – the article not only reviews Indonesia’s current arbitration landscape but also offers essential recommendations for future arbitration legislation to provide regulatory clarity on: (i) the other factors in determining whether an arbitration is international; and (ii) a clearer definition of the seat of arbitration. By addressing existing regulatory gaps, the authors present valuable insights for enhancing legal certainty and strengthening Indonesia’s arbitration framework.

Read the full article here.

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