The Interpretation of Public Policy Concept on the Recognition and Enforcement of International Arbitral Awards: A Challenge to Indonesian Courts Mutiara Hikmah- Dinda R. Himmah
International Law Department, Faculty of Law, University of Indonesia, Indonesia
Abstract
Towards 40 years of ratifying the New York Convention of 1958, international arbitral awards should have been eligible to be recognized and enforced in the territory of Indonesia. Based on the principle of reciprocity, this is as the legal consequence of the ratification. However, case laws show that the Indonesian courts tend to refuse or annul the recognition and enforcement of international arbitral awards within its territory. One of the most frequent considerations taken by the courts is on the basis of public policy concept. Both of the New York Convention of 1958 and the Indonesian Arbitration Law No. 30 of 1999 do not provide a clear definition regarding to the public policy concept. In consequence, it becomes a huge challenge to the Indonesian courts in interpreting the concept of public policy relating to the scope of the execution of international arbitral awards. This article would examine the perspective of Indonesian courts towards the public policy concept, especially at the legal situation in which Indonesia has been known as an unfriendly country in executing international arbitral awards. Moreover, the current situation of COVID-19 pandemic also has given more challenge to such legal problem. The research would be conducted by literature studies as well as the analysis of cases decided by the Central Jakarta District Court as the competent court in the Republic of Indonesia.
Keywords: International Arbitration, Recognition and Enforcement of International Arbitral Awards, Public Policy.
