According to Article 1 point 1 of the AAPS Law, arbitration is a method of resolving civil disputes outside the public courts based on a written agreement made by the parties to the dispute. Arbitration involves a third party-an authorized umpire or arbitrator-in the process.

The arbitration award is final and cannot be appealed, cassated or reviewed. In civil cases, execution is a compelling legal action carried out by the president of the district court as part of the overall dispute resolution process.

In the context of arbitration, execution must follow the general principles of execution, namely:

1. The award has permanent legal force. In this case, the arbitration award has permanent legal force since it was rendered by the arbitrator or arbitration panel;
2. The executed award contains a dictum or ruling that is
3. The execution action is carried out if the respondent to the execution as the losing or sentenced party is not willing to voluntarily fulfill the order of the award;
4. Execution is carried out by order and under the leadership of the president of the district court.

The provisions of Article 59 of the AAPS Law are as follows:

1. Within a maximum period of 30 days as from the date on which the award is pronounced, the original or an authentic copy of the arbitral award shall be submitted and registered by the arbitrator or his/her attorney to the registrar of the district court.
2. Such delivery and registration shall be made by recording and signing at the end or on the margin of the award by the clerk of the district court and the arbitrators or their proxies delivering it, and such record shall constitute a deed of registration.
3. The arbitrator or his proxy shall submit the award and the original form of appointment as arbitrator or an authentic copy thereof to the registrar of the district court.
4. Failure to comply with the provisions referred to in point 1 shall result in the arbitral award being unenforceable.
5. All costs associated with the preparation of the registration deed shall be borne by the parties.

The arbitral award shall be executed at the request of one of the parties to the dispute by the president of the district court if the party does not execute it voluntarily. No later than 30 days after the request for execution is submitted to the clerk of the district court, the chairperson of the court is required to enforce the arbitral award if the parties do not do so voluntarily.

Before granting an execution order, the president of the district court checks whether the arbitral award complies with Articles 4 and 5 of the AAPS Law and is not contrary to decency and public order. If these are not met, the request for execution is denied by the district court chairman, and no legal remedy can be taken against the decision.

The conditions contained in Articles 4 and 5 of the AAPS Law are briefly stated:

1. Whether there is an arbitration agreement signed by the parties in the case;
2. Whether the arbitral award concerns a dispute in the field of trade; and whether it is not contrary to decency and public order.

On the original sheet and authentic copy of the arbitral award issued, the order of the president of the district court shall be written if an order for execution is received. The arbitral award affixed with the order of the chairman of the district court is applied in accordance with the provisions on the execution of decisions in civil cases that have permanent legal force. Execution of an arbitral award may be carried out through warning (aanmaning), issuance of a writ of execution, and minutes of execution.

The president of the district court will issue a warrant of execution instructing the clerk or bailiff to confiscate the execution against the property of the respondent according to the procedures and conditions stipulated in Article 197 HIR if the respondent does not appear to comply with the warning (aanmaning) without valid reasons or if the respondent does not comply voluntarily after the warning period has expired.

DOES THE ARBITRAL AWARD ALLOW FOR THE EXECUTION OF ASSETS THAT ARE NOT MENTIONED?

Execution against such assets cannot be carried out. This is because the parties’ assets in the arbitration award are included in the deed of compromise. According to Article 618 Rv, a deed of compromise is an agreement by the parties to submit the dispute that has arisen to arbitration. Both parties must sign the deed. This deed includes the following matters:

1. The matter in dispute;
2. The names and residences of the parties;
3. The names and residences of the arbitrators to whom they have agreed;
4. The number of arbitrators must be odd.

In addition, Article 9 paragraph (3) of the AAPS Law expressly regulates what must be written in the written agreement used for dispute resolution through arbitration, which must include:

1. The matter in dispute;
2. Full names and residence of the parties;
3. Full name and residence of the arbitrator or arbitral tribunal;
4. The place where the arbitrator or arbitral tribunal will make the decision;
5. Full name of the secretary;
6. Time period for dispute resolution;
7. Statement of willingness of the arbitrator; and
8. A statement of willingness of the disputing party to bear all costs necessary for the settlement of the dispute through arbitration.

In addition, according to Article 9 paragraph (4) of the AAPS Law, the agreement becomes legally void if it does not cover the above matters. Therefore, no petition for execution can be filed in an arbitration award against the property of one of the parties that was not previously mentioned in the arbitration award.

However, based on the provisions of Article 70 of the AAPS Law, it is confirmed that the court has the authority to annul an arbitral award if the following elements are present:

1. Letters or documents submitted in the examination, after the award is rendered, are recognized as false or declared to be false;
2. There is a document of a decisive nature, which has been concealed by the opposing party; or
3. The decision is made as a result of deceit committed by one of the parties in the dispute examination.

Legal Basis:

1. Herzien Inlandsch Reglement (H.I.R);
2. Reglement op de Rechtsvordering (R.V);
3. Law Number 30 Year 1999 on Arbitration and Alternative Dispute Resolution.

Reference:

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