Introduction

Definition
BAPMI's Arbitration means a type of dispute settlement mechanism that the disputing parties give an entitlement and authority to the independent third party to examine and make decision to the said dispute. The award granted by Arbitrator is final and binding to the Parties.

According to the above definition, BAPMI's Arbitration is similar to a court, and Arbitrator in Arbitration process is similar to a judge in litigation process, the differences are:

1. Arbitration is an option agreed by disputing parties;
2. Arbitration conducted after the submission of the application to BAPMI;
3. the parties have an entitlement to determine the number of Arbitrator, whether one (Sole Arbitrator) or more (Arbitral Tribunal);
4. the parties have an entitlement to determine the place of Arbitration;
5. the parties have an entitlement to choose Arbitrator;
6. an Arbitrator is chosen based on his/her expertise;
7. Arbitration conducted under BAPMI's rules and regulation;
8. Arbitration is confidential in nature;
9. Arbitration decision is not about precedent or jurisprudential;
10. Arbitrator makes judgment in accordance with the provisions of laws as well as on the basis of fairness and justice (ex aequo et bono);
11. Arbitration decision cannot appeal.

The Reasons to choose the BAPMI's Arbitration

There are some reasons why the parties refer to BAPMI's Arbitration to settle their disputes:

1. the parties get deadlock to continue the negotiation;
2. the parties tend to a right based procedure/approach to settle their disputes;
3. the parties have no intention to go to the court but they need a final and binding decision;
4. the parties want to settle their disputes by an easier, faster and more efficient mechanism;
5. the parties need a guarantee that any person appointed as Arbitrators having Arbitration skills and proficient in the capital market field;
6. the parties want to settle their differences by a private forum.

Type of Disputes

The disputes eligible for resolution by BAPMI's Arbitration have to meet 4 requirements:

1. only civil case between the parties that relate to activities in the field of capital market;
2. there is an agreement between the parties that dispute will be settled through BAPMI's Arbitration;
3. there is a written request by one of the parties to BAPMI;
4. such dispute is not a criminal or administrative case, such as market manipulation, insider trading, or revocation of business license.