History

Badan Arbitrase Nasional Indonesia
(BANI Arbitration Center)

Badan Arbitrase Nasional Indonesia (BANI Arbitration Center) is an independent institution, providing a range of services in relation to arbitration, mediation, binding opinion and other form of dispute resolutions.

BANI was established in 1977 by the Indonesia Chamber of Commerce and Industry (KADIN INDONESIA) with the decree No. SKEP/152/DPH/1977 on 30 November 1977, managed by Governing Board and supervised by Supervisory Board and Board of Advisors consisted of prominent public figures and business personalities.

With the stature as the first and leading Indonesian arbitration institution at the International stage, with over than 4 decades of experience and with more than 160 listed arbitrators both foreign and Indonesian nationals from various backgrounds, BANI Arbitration Center is the obvious choice for arbitration in Indonesia.

BANI Arbitration Center is located in Jakarta with its regional offices across Indonesia’s main cities such as Surabaya, Bandung, Medan, Denpasar, Palembang, Pontianak, and Jambi.

Committed to complete neutrality and independence as an Arbitral Institution, BANI has developed its own rules and procedures for arbitration, arbitration by electronic means, hybrid mediation-arbitration including the time frame for an award to be issued by the Arbitral Tribunal. These rules and procedures are used in both domestic and international arbitration.

In Indonesia, the interest to settle disputes through arbitration has been significantly growing with the enactment of Law number 30 of 1999 on Arbitration and Alternate Dispute Resolution (Arbitration Law). The growing interest has been consistent with the globalization in which dispute settlement by arbitration has become the choice of business entities to resolve their dispute. Besides its immediate, efficient and final characteristics, arbitration follows the principle of party autonomy solution and a direct method as there is no appeal and cassation.

Based on reciprocity requirement, the foreign arbitral awards that involve foreign company are recognized and executable in Indonesia. Likewise the arbitration awards made in Indonesia involving foreign companies may be recognized and executed overseas on the basis of New York Convention of 1958 on the Recognition and Enforcement of Foreign Arbitral Awards.

BANI was established for the following purposes:

  1. To help business and industry to settle their disputes by arbitrators impartially and independently in Indonesia through the arbitration and alternative dispute resolution for resolving disputes in the various sectors of trade, industry and finance, such as concerning corporate matters, construction, insurance, financial disputes, aviation, telecommunication, oil, gas and mining, sea and air transportation, manufacturing, intellectual property rights, licensing, franchise, shipping/maritime issues, and others.

  2. To provide services for the dispute settlement through arbitration or other forms of alternative dispute resolution, such as negotiation, mediation, conciliation and binding opinion in accordance with the BANI’s Rules of Procedures or other rules as agreed by the parties.

  3. To carry our studies and research and training/education programs pertaining to arbitration and alternative dispute resolution.

BANI is one of the founding institutions and members of Asia Pacific Regional Arbitration Group (APRAG). BANI is also one of the founding institutions of Regional Arbitral Institute Forum (RAIF), and is a member of the International Council for Commercial Arbitration (ICCA).

BANI has signed cooperation agreements with arbitration associations and centres in several countries for the purpose of promoting and developing international commercial arbitration and other forms of ADR amongst companies and businesses. These arbitration associations and centres include the following institutions

  • The Japan Commercial Arbitration Association (JCAA);
  • The Netherlands Arbitration Institute (NAI);
  • The Korean Commercial Arbitration Board (KCAB);
  • Australian Centre for International Commercial Arbitration (ACICA);
  • The Philippines Dispute Resolution Centre(PDRCI);
  • Hong Kong International Arbitration Centre(HKIAC);
  • The Foundation for International Commercial Arbitration dan Alternative Dispute Resolution (SICA-FICA);
  • The Singapore Institute of Arbitrators (SIArb);
  • Arbitration Association Brunei Darussalam (AABD);
  • Asian International Arbitration Centre (AIAC);
  • The Belgian Centre for Arbitration and Mediation (CEPANI).
  • Thai Arbitration Centre (THAC);
  • Bangladesh International Arbitration Centre (BIAC);
  • China International Economic and Trade Arbitration Commission (CIETAC)
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