Model Clause

Arbitration Agreement

The existence of an Arbitration Agreement between the parties is a basic requirement for any application to BAPMI's Arbitration. Any disputes cannot refer to BAPMI's Arbitration if the disputing parties do not have an Arbitration Agreement.

"Arbitration Agreement" means a written agreement of the parties that any disputes arise from or relate to their contract will settle to BAPMI's Arbitration. The Arbitration Agreement formulated in 2 ways or forms:

• as a clause of contract before any dispute occur (Arbitration clause); or
• as a separate agreement made by the parties after the dispute occurs.

Any parties that bound by an Arbitration Agreement shall have no right to file the dispute to the Court, and in this condition, the Court has no authority/jurisdiction at all to handle the dispute of the parties that have bounded by an Arbitration Agreement.

Model Clause

BAPMI recommends to any parties that have an intention to choose BAPMI as a forum to dispute settlement use this model clause into their contracts:

Paragraph 1:
Any disputes arising out or related to this agreement will settle amicably by the parties.

Paragraph 2:
If, and to the extent that, any such dispute has not been settled amicably, it shall be referred to BAPMI's Mediation according to BAPMI's rules and regulations.

Paragraph 3:
If, and to the extent that, any such dispute has not been settled pursuant to the mediation, it shall be referred to and finally determined by BAPMI's Arbitration according to BAPMI's rules and regulations as the first and final decision. The tribunal of 3 Arbitrators will hold the Arbitration. The parties hereto waive their rights to file or assert any claims, suits, actions, demands, or petitions in any manner or form whatsoever to any court or such other judicial bodies with respect to any matters related to the disputes settled and resolved by this Arbitration save for the purpose of the implementation, execution, or enforcement of such arbitration award."

Arbitration Agreement after the Occurrence of Dispute

Article 8 of the Law Number 30/1999 concerning of Arbitration and Alternative Dispute Settlement specifies that an Arbitration Agreement made by the parties after the occurrence of dispute must formulated in writing and must consist of:

1. the matters of dispute;
2. full name of the parties and their addresses;
3. full name of Arbitrator/Arbitral Tribunal and his/her addresses;
4. the place where the Arbitrator/Arbitral Tribunal make the award;
5. full name of the secretary of the proceedings;
6. settlement timeframe;
7. acceptance statement of the appointed Arbitrator;
8. statement of the parties to bear any cost payable related to Arbitration proceedings.

The disputing parties must bear in mind to the said Article, because, if an Arbitration Agreement does not conclude all items completely, by law, such agreement will be null and void.