THE FINALITY OF ARBITRATION: THE PROS AND CONS OF THE COURT’S POWER TO SETTING ASIDE ARBITRAL AWARDS IN INDONESIA

Abstract

The finality of arbitration award raises several questions when it clashes with the court's authority to set aside the foreign award. These problems are resulting in a contradiction with the primary goals that become the reasons for the birth of arbitration as a non-litigation resolution based on the good faith of the parties. Therefore it is important to review the extent of the role and intervention of the court in the arbitration award. As for the problems are formulated to aim for the answers as follows: (1) The court authority to set aside foreign arbitral awards in Indonesia: (2) The pros and cons of court power in setting aside a foreign arbitral award. The research method used in this study is normative juridical, which focused on secondary data in the form of primary, secondary, and tertiary legal material. The result of this study shows that the Court intervention in the arbitration is present as a protection for the parties. Nevertheless, it is undeniable that the Court plays a vital role in order to prove the validity of an award or arbitration process. Therefore we believe in providing space for the court to enter into arbitration but with rigorous limitations. The court's intervention in the arbitration award raises the discourse on the independence of the arbitration. This results in pros and cons views on the authority of the court in arbitration with the basic arguments of countering conflict of interest by check and balance while also argue that the court intervention affecting the length of the litigation process in an attempt to overturn the award removes the essence of arbitration as a quick settlement.