Mimbar Hukum (Feb 2015)
LEGAL ISSUES IN THE ANNULMENT OF INTERNATIONAL ARBITRAL AWARD IN THE HIMPURNA AND KARAHA BODAS IN INDONESIA
Abstract
Law enforcement of international arbitral award in Indonesia is still lacking. Some annulments of the award have occurred in Indonesia. The Himpurna and Karaha Bodas are two notorious cases that show the annulment of the international arbitral awards by a court in Indonesia. However, several legal issues have arisen on this annulment, because the judges in their decision relied on a wrong interpretation to the provision of the United Nation Convention on the Recognition and Enforcement of Foreign Arbitral Awards 1958 (the New York Convention), and the parties agreement. This paper will analyse the error of the Indonesian court in annulling the Himpurna and Karaha Bodas awards. This paper will then demonstrate the judges’ misinterpretation to the New York Convention provision concerning refusal and annulment of foreign arbitral award. This paper ultimately will suggest how to create a proper legal environment in Indonesia to apply international arbitration.
