Introduction

Definition
BAPMI's Mediation means a type of dispute settlement mechanism through negotiation among the parties facilitated by a neutral and independent third party - so called Mediator. Mediator has no entitlement to make a decision on the dispute, he/she just facilitate and assist the parties to understand each other's perspective and then find out any possibilities solutions together. The expected result of Mediation is a settlement agreement.

When were the Mediation used

Mediation is acceptable in every stages of dispute settlement, i.e. when:

• the parties get deadlock in negotiation;
• during the Arbitration process;
• before the judge begins the examination of a case - the Rule of Supreme Court Number 2/2003 determine that on the first hearing attended by both parties the Judge firstly oblige the both parties to Mediation (Court-Annexed Mediation).

The Reasons to choose the BAPMI's Mediation
There are some reasons why the parties refer to BAPMI's Mediation to settle their disputes:

1. the parties still believe that they can settle the dispute based on win-win solution;
2. the parties want to preserve their today and future relationship;
3. the parties tend to an interest based procedure/approach rather than to a right based procedure/approach to settle their disputes;
4. the parties need a guarantee that any person appointed as Mediator having Mediation skills and proficient in the capital market field;
5. the parties want to settle their disputes by an easier, faster and more efficient mechanism;
6. the parties want to settle their differences by a private forum.

Type of Disputes
The disputes eligible for resolution by BAPMI's Mediation 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 Mediation;
3. there is a written request by the both parties to BAPMI;
4. such dispute is not a criminal or administrative case, such as market manipulation, insider trading, or revocation of business license.