ALTERNATIVE DISPUTE RESOLUTION IN INDONESIA Part One: Arbitration

INTRODUCTION

Litigation through the court system is the traditional and standard means of resolving disputes.[1] Despite this being the case, systematic deficiencies in the Indonesian court system described in the media as one of the most corrupt institutions in Indonesia, result in disputing parties either avoid the courts or seeking alternative methods to resolve disputes.

Difficulties in the Indonesian court system are apparent in the recent arrest of Akil Mochtar, the Chief Justice of the Constitutional Court, who was accused of accepting bribes in an election dispute.[2] The Mochtar scandal has further compounded the trepidation of businesses in taking disputes to courts. The competence and ability of local judges to understand complex modern commercial transactions and trade is also an issue.[3]