Basically, commercial disputes can be proceed through the court or arbitration forums, where both types have different mechanisms and conditions. The mechanism through arbitration forums (generally) refers to the provisions of Law No. 30 of 1999 concerning Arbitration and Alternative Dispute Resolution ("Law No. 30/1999").
According to the provisions of Article 1 No. 1 Law No. 30/1999 is stated explicitly as follows:
"Arbitration is a method of resolving a civil dispute outside the general court based on an arbitration agreement made in writing by disputing parties".
So it is expressly stated that the arbitration forum is only intended for civil or commercial disputes and the forum for dispute resolution through arbitration must be stated in an agreement made by the parties. The arbitration agreement is referred Article 1 number 3 of Law No. 30/1999, as follows:
"An arbitration agreement is an agreement in the form of an arbitration clause stated in a written agreement made by the parties before a dispute arises, or a separate arbitration agreement made by the parties after the dispute arises".
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The requirements for registering an arbitration application in BANI refer to the provisions of Article 16 of the BANI Procedure Regulations, as follows:
1. The Application (lawsuit) Letter must attach an agreement containing an arbitration clause and a sufficient copy to be made to the relevant parties.
2. Application Letter must at least contain:
- Name and address of the parties;
- Information about facts supporting the Application for Arbitration;
- Points of case; and
- The amount of compensation claims demanded.
3. The applicant (plaintiff) may also attach other documents relating to the dispute
The process of BANI arbitration proceedings is carried out efficiently and effectively, where the parties simply submit documents through the secretary without trial session. The Panel of arbiter will hold a hearing if the agenda of witness by the parties
