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Forced Arbitration Agreement Template for Indonesia

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Key Requirements PROMPT example:

Forced Arbitration Agreement

"I need a Forced Arbitration Agreement for our Indonesian subsidiary that will be used with all new employees starting from January 2025, specifying BANI (Indonesian National Board of Arbitration) as the arbitration institution and including both Bahasa Indonesia and English as official languages."

Document background
The Forced Arbitration Agreement is a crucial legal document used in Indonesia when parties wish to establish arbitration as the mandatory method of dispute resolution, bypassing traditional court litigation. This agreement is particularly relevant in commercial relationships, employment contracts, and consumer agreements where parties seek to ensure efficient, private, and cost-effective dispute resolution. The document must comply with Indonesian Law No. 30 of 1999 on Arbitration and Alternative Dispute Resolution, which provides the legal framework for arbitration in Indonesia. It includes essential elements such as the scope of arbitrable disputes, arbitrator selection process, procedural rules, and enforcement provisions. The agreement is especially important in Indonesia's growing economy where businesses seek to manage legal risks and ensure predictable dispute resolution mechanisms.
Suggested Sections

1. Parties: Identifies and defines all parties to the arbitration agreement

2. Background: Establishes the context and relationship between the parties

3. Definitions: Defines key terms used throughout the agreement

4. Agreement to Arbitrate: Clear statement of mutual agreement to submit disputes to binding arbitration

5. Scope of Arbitration: Defines what types of disputes are covered by the arbitration agreement

6. Arbitration Rules and Procedures: Specifies the rules governing the arbitration process, including reference to institutional rules if applicable

7. Selection of Arbitrators: Process for selecting arbitrators and requirements for arbitrator qualifications

8. Place of Arbitration: Specifies the seat of arbitration and venue for proceedings

9. Language of Arbitration: Establishes the official language(s) for the arbitration proceedings

10. Governing Law: Specifies Indonesian law as governing law and relevant jurisdictional provisions

11. Costs and Fees: Allocation of arbitration costs and fees between parties

12. Confidentiality: Provisions regarding confidentiality of the arbitration proceedings

13. Enforcement: Provisions regarding the binding nature and enforcement of arbitral awards

14. Execution: Signature blocks and execution requirements

Optional Sections

1. Class Action Waiver: Waiver of right to participate in class actions, used when agreement covers consumer or employment disputes

2. Emergency Relief: Provisions for seeking emergency relief or interim measures, useful for commercial disputes

3. Multi-Party Provisions: Special provisions for arbitrations involving multiple parties, used in complex commercial relationships

4. Appeals Process: Optional provisions for internal appeals of arbitration awards, useful in high-stakes disputes

5. Severability: Provisions ensuring survival of agreement if certain parts are found unenforceable, particularly important in consumer contexts

6. Opt-Out Provisions: Allows parties (usually consumers/employees) to opt out within specified timeframe, helps with enforceability

7. Notice Requirements: Detailed requirements for initiating arbitration, useful in complex commercial relationships

Suggested Schedules

1. Schedule A - Arbitration Procedures: Detailed procedures for conducting the arbitration, including timelines and processes

2. Schedule B - Fee Schedule: Detailed breakdown of arbitration fees and cost allocation

3. Schedule C - Arbitrator Qualifications: Specific requirements and qualifications for arbitrators

4. Appendix 1 - Notice of Arbitration Form: Standard form for initiating arbitration proceedings

5. Appendix 2 - Arbitrator Selection Process: Detailed process and timeline for selecting arbitrators

6. Appendix 3 - Opt-Out Form: Standard form for exercising opt-out rights (if applicable)

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Relevant Industries

Retail

E-commerce

Manufacturing

Financial Services

Technology

Healthcare

Professional Services

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Hospitality

Energy

Mining

Telecommunications

Consumer Goods

Education

Relevant Teams

Legal

Human Resources

Compliance

Risk Management

Procurement

Operations

Executive Leadership

Commercial

Employee Relations

Administrative

Relevant Roles

Legal Counsel

Human Resources Director

Compliance Officer

Risk Manager

Contract Manager

Chief Legal Officer

HR Manager

Business Development Manager

Procurement Manager

Operations Director

Chief Executive Officer

Chief Operating Officer

General Manager

Commercial Director

Employment Relations Manager

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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