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Mutual Arbitration Agreement Template for Indonesia

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Key Requirements PROMPT example:

Mutual Arbitration Agreement

"I need a Mutual Arbitration Agreement under Indonesian law for a joint venture between our tech company and an Indonesian software development firm, with BANI as the arbitration institution and English as the arbitration language, to be effective from March 2025."

Document background
This Mutual Arbitration Agreement is designed for use in Indonesia when parties wish to establish a clear and binding framework for resolving potential disputes through arbitration rather than court litigation. The document is particularly relevant for business relationships, employment arrangements, and commercial contracts where parties prefer a private, potentially faster, and often more cost-effective dispute resolution mechanism. It complies with Indonesian Law No. 30 of 1999 on Arbitration and Alternative Dispute Resolution and includes essential provisions for arbitrator selection, procedure determination, cost allocation, and award enforcement. The agreement can be used either as a standalone document or incorporated into broader commercial agreements, making it versatile for various business relationships while ensuring compliance with Indonesian arbitration law.
Suggested Sections

1. Parties: Identifies and defines the parties entering into the arbitration agreement

2. Background: Sets out the context and purpose of the arbitration agreement

3. Definitions: Defines key terms used throughout the agreement

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

5. Agreement to Arbitrate: Contains the mutual commitment to resolve disputes through arbitration

6. Arbitration Rules and Procedures: Specifies the rules governing the arbitration process, including the chosen arbitration institution

7. Selection of Arbitrators: Details the process for selecting arbitrators and the number of arbitrators

8. Place and Language of Arbitration: Specifies the seat of arbitration and the language in which proceedings will be conducted

9. Governing Law: Specifies Indonesian law as the governing law of the agreement

10. Costs and Fees: Addresses how arbitration costs and legal fees will be allocated

11. Confidentiality: Establishes confidentiality obligations regarding the arbitration proceedings

12. Final and Binding Nature: Confirms the binding nature of the arbitration award

13. Execution: Signature blocks and execution formalities

Optional Sections

1. Class Action Waiver: Waiver of right to participate in class actions, if applicable under Indonesian law

2. Severability: Provisions for maintaining validity if parts of the agreement are found unenforceable

3. Emergency Relief: Procedures for seeking emergency interim relief from courts

4. Multiple Parties: Special provisions for arbitrations involving more than two parties

5. Discovery Procedures: Specific rules for document production and evidence gathering

6. Appeals Process: Optional provisions for appealing arbitration awards within the arbitration framework

7. International Enforcement: Additional provisions for international enforcement under the New York Convention

Suggested Schedules

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

2. Schedule 2 - Arbitrator Qualifications: Specific requirements and qualifications for appointed arbitrators

3. Schedule 3 - Fee Schedule: Detailed breakdown of arbitration costs and fee structures

4. Appendix A - Notice Requirements: Forms and procedures for giving notice under the agreement

5. Appendix B - Model Arbitration Clause: Standard language for incorporating the arbitration agreement into other contracts

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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