Procedural Commercial and Civil Law: Enforcement, Arbitration, and Jurisdiction in Indonesian Energy Disputes

Originally published in Lexology Panoramic: Energy Disputes 2026.

By Setyawati Fitrianggraeni, S.H., LL.M., FCIArb., FAIADR, Reynalda Basya Ilyas, Aga Kristiana Silaen, Marcel Raharja, and Irvena A Dewanto

In brief

Energy disputes in Indonesia are resolved through litigation, arbitration, or a combination of both, and the procedural rules differ sharply from common-law systems: there is no disclosure or discovery process, foreign judgments are not enforceable, and settlement discussions are protected. This part explains how courts handle competing contract clauses, stepped and split dispute clauses, expert evidence, and interim relief, how foreign arbitral awards are enforced, why arbitration is generally preferred in the energy sector, and how privilege and jurisdiction work.

Competing clauses and dispute clauses

There is no specific procedure to resolve competing clauses in multiple contracts relating to a single transaction, lease, licence, or concession. Each court determines its own assessment and decision based on the submissions made by the parties, and judges primarily refer to the Indonesian Civil Procedural Law to assess whether the dispute falls under their competence or jurisdiction. Unlike the common-law system, judges are not bound by past court precedent, so a case-by-case approach applies.

Stepped dispute resolution clauses are common in Indonesia and are enforceable. If a civil dispute is administered in the District Court, court-annexed mediation is mandatory. Split dispute resolution clauses are not common, but there is no express prohibition under statutory regulation.

Expert evidence and interim relief

Parties are free to present expert evidence to support their arguments. Under the Civil Procedural Law, expert testimony is not recognised as a form of statutory evidence, unlike in specific cases such as environmental cases. There are no regulations providing rules on the engagement and use of an expert by the disputing parties. In certain conditions, the panel of judges has the authority to summon an expert based on the request of one of the parties or ex officio.

There is no specific interim or emergency relief for energy disputes. In general, the court may grant interim relief, including an order for one of the parties to temporarily cease construction on the land object of the dispute and conservatory attachment of assets.

Foreign judgments and foreign arbitral awards

A foreign judgment is not enforceable in Indonesia. Foreign arbitral awards are enforceable, as Indonesia is a party to the New York Convention, and enforcement is further regulated in Law No. 30 of 1999 on Arbitration and Alternative Dispute Resolution (AADR Law), as amended by Constitutional Court Decision No. 100/PUU-XXII/2024. The enforcement process for a foreign arbitral award can be summarised as follows:

the arbitrator or its legal counsel registers the foreign arbitral award with the Registrar of the Central Jakarta District Court, submitting an authentic copy of the award and its official translation, an authentic copy of the agreement that served as the object of the dispute and its official translation, and a statement from the diplomatic representative of the Republic of Indonesia in the country where the award was issued, stating that the issuing country is a party to the New York Convention;
a recognition and enforcement (exequatur) petition is submitted to the Central Jakarta District Court;
an exequatur stipulation is issued by the Head of the Central Jakarta District Court; and
if the respondent refuses to comply with the award voluntarily, ordinary court decision enforcement takes place (reprimand (aanmaning), attachment, and auction).

Arbitration in the energy sector

There is no arbitration institution that specifically administers energy disputes in Indonesia. However, SKK Migas, through PTK 007, mandates that if an agreement concerning the supply of goods or services between subcontractors and holders of a Production Sharing Contract chooses arbitration as the dispute resolution forum, the arbitration should be domestic. The AADR Law does not provide an explicit definition of domestic arbitration, but in practice the parties generally choose the Indonesian National Arbitration Agency (BANI).

In practice, parties in energy sector contracts are generally inclined to choose arbitration as the dispute resolution forum. Besides the complexity of the case, arbitration offers flexibility on procedure, confidentiality, a clearer timeline, freedom to choose arbitrators, and finality. Under the AADR Law, arbitration is only allowed for commercial disputes. The AADR Law does not define “commercial dispute”, but lists examples of commercial activities that include trade, banking, finance, investment, industrial activities, and intellectual property.

Settlement confidentiality, privilege, and jurisdiction

Under the Advocates Code of Ethics issued by the Indonesian Bar Association, statements made in a settlement discussion are without prejudice: the statements and confessions of the parties for settlement purposes cannot be used as evidence in the proceeding if the parties fail to reach an agreement. The Supreme Court mandates an identical obligation for mediation administered by the District Court.

Indonesian law does not recognise a disclosure and discovery process in proceedings. The disputing parties are free to choose the documentary evidence to be submitted and uploaded to the court system, which will be available to be downloaded by the other disputing parties.

Law No. 18 of 2003 on Advocates (Advocates Law) provides that advocates must keep confidential everything known or obtained from their clients unless required by law. Advocates are entitled to a confidential relationship with the client, including protection of their files and documents against confiscation or inspection and protection against interception of the advocate’s electronic communications.

Any civil dispute between individuals, legal entities, and the government may be directly heard by the district court. An administrative court is only authorised to settle a dispute filed by an individual or legal entity against a state administrative agency or officials, regarding the validity of a state administrative decree (for example, an environmental permit or a mining business licence).

For advice on enforcement, arbitration, or jurisdiction in Indonesian energy disputes, contact Anggraeni and Partners at connect@ap-lawsolution.net.