The Supreme Court in its efforts to considerably reduce workload, intends to introduce court-annexed mediation as a means to have parties settle their disputes. Mediation would be a solution to reduce the amount of cases brought to court.

The draft provides, that in the first hearing the proceeding has to be postponed in order to enable the parties to settle their dispute by the help of mediation. The parties will be offered to choose a mediator. There are two groups of mediators from which to choose: one is the registered mediators, who can be judges as well as non-judges, the other comprises of outside mediators. If the parties cannot agree on one certain mediator, the court will select one for them.

In case the mediation is not successful within 30 days, the usual court proceeding will continue. This draft also regulates the procedures for mediation.

In case the mediation is successful and the dispute is settled, a settlement deed maybe drawn up and included in the court decision which would have the same enforceability effect with a final court decision.

Except for cases where the dispute is in the interest of the public (e.g. on environmental, consumer protection matters, labor, land or human rights matters), the mediation proceedings are held in closed chambers, which at the discretion of the parties, they may opt elsewhere.

If you need clarification or legal advice on this issue, please contact Lubis Ganie Surowidjojo at lgs@lgslaw.co.id