Provides references to local service providers and other professional associations.
Last Published: 2/4/2019
The government and professional lawyers are working to improve the Indonesian legal system so that it can offer better protection for businesses. To handle their business matters in Indonesia, U.S. companies should consider hiring a local attorney who understands the business environment and corresponding laws. Should a commercial dispute arise, a first step is to attempt to settle the dispute through negotiation, using a mediator acceptable to both parties if necessary.  If negotiation fails, then companies may seek arbitration, which should be included as a clause in commercial contract agreements and with Indonesia as the site of arbitration. Badan Arbitrase Nasional Indonesia (BANI) or Indonesian National Board of Arbitration is an independent agency that was formed by the government.  Companies may retain BANI, International Chamber of Commerce (ICC) or United Nations Commission on International Trade Law (UNCITRAL) to conduct their arbitration proceedings. If negotiation, mediation, and arbitration fail to resolve the dispute, then litigation is the next course of action.

Foreign law firms cannot operate in Indonesia unless they partner with a local firm.  U.S. lawyers may act as advisors, not as lawyers, to Indonesian law firms.  It is common for an American attorneys retained by a U.S. firm to consult with a local law firm.
 

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