Arbitration is a dispute resolution forum outside the public courts, this is as stated in Article 1 paragraph (1) of Law No. 30 of 1999 concerning Arbitration and Alternative Dispute Resolution (“Arbitration Law) which reads “Arbitration is a method of resolving a civil dispute outside the public courts based on an arbitration agreement made in writing by the parties to the dispute”. The question is what is the procedure for resolving disputes through arbitration? Is it the same as the process of filing a lawsuit to the District Court? Disputes that can be resolved through an arbitration forum must first have an agreement in the contract containing an “Arbitration Clause”. If there is no Arbitration Clause, then a written agreement must be made between the Parties. In the Clause or agreement made after a dispute arises, it must be clearly stipulated that the Arbitration Forum chosen, for example the Indonesian National Arbitration Board (BANI) or the Alternative Financial Services Sector Dispute Resolution Institution (LAPSSJK) or an overseas Arbitration Forum (Singapore International Arbitration Center (SIAC) etc.), then the law used and how many arbitration tribunals will examine the case. Each Institutional Arbitration Forum (BANI, LAPSJK etc.) has procedures that must be complied with by the Parties in dispute who use the arbitration forum. BANI and LAPSSJK use their own procedures and another reference is the Arbitration Law. The term used in Arbitration and Court is for the Plaintiff in Court while in arbitration the Claimant while the Defendant in Court is the Respondent in Arbitration. If there is already an Arbitration Clause in the contract, then the next steps are as follows:

1. Notice of Arbitration in accordance with Article 8 of the Arbitration Law from the Claimant to the Respondent. The Notice of Arbitration shall contain the following matters:
   • names and Addresses of the parties
   • Reference to the applicable arbitration clause or agreement
   • The agreement or matter in dispute
   • Basis of claim and amount claimed, if any
   • Desired mode of settlement, and
   • An agreement entered into by the parties as to the number of arbitrators or where no such agreement has been entered into, the applicant may make a proposal as to the number of arbitrators desired in odd numbers.
2. Registration of the Request for Arbitration to the agreed Arbitration Forum by paying the registration fee and 50% of the arbitration fee, the amount of which depends on the value of the dispute multiplied by the arbitration fee table.
3. The arbitration costs must be paid before the arbitration hearing commences, if the Respondent has not paid the arbitration costs within the specified deadline. Then the Claimant shall cover the costs.
4. At the time of Arbitration registration, the Claimant or the party initiating the case settlement must submit a Request for Arbitration by attaching preliminary evidence. The document of the Petition for Arbitration has the same format as the lawsuit.
5. After that, the appointment of the arbitral tribunal. If in the arbitration clause that has been agreed upon the arbitral tribunal consists of 3 (three) arbitrators, then the Claimant appoints Arbitrator 1 (first), the Respondent appoints Arbitrator 2 (second) then the Arbitrators appoint the third Arbitrator.
6. After the arbitral tribunal is formed, a Decree will be issued for the appointment of the arbitral tribunal and the Secretary of the Arbitral Tribunal by the Chairman of the Arbitration Council/Manager.
7. After the arbitral tribunal is formed, an initial hearing will be held to agree on the schedule of hearings.
8. Henceforth, the examination process is almost the same as the trial in the general court, namely:
   • Answer
   • Replik
   • Duplic
   • Matching evidence
   • Examination of fact and expert witnesses
   • Conclusion
   • Verdict Reading.
9. Arbitration awards must be registered with the District Court no later than 30 (thirty) days after being read out in order to have executorial force. As Article 59 paragraph (1) of the Arbitration Law reads ” Within a maximum period of 30 (thirty) days from the date the award is pronounced, the original sheet or an authentic copy of the arbitration award shall be submitted and registered by the arbitrator or his attorney to the Registrar of the District Court.”

The dispute resolution process through arbitration must be completed within no more than 180 (one hundred and eighty) days from the formation of the arbitral tribunal. In some cases, arbitration disputes are resolved in more than 180 days due to the complexity of the case or other obstacles. The extension of time beyond the provisions of the Arbitration Law, which is 180 days, must first be agreed upon by the parties and then a written agreement signed by the parties to the dispute must be made.