Abstract: Arbitration is possible only if there is an agreement between
the parties providing for it. e agreement is usually put
in the arbitration clause in a contract or submission agreement.
e parties may agree on anything regarding as to
how the arbitration should proceed including the place
of arbitration. In the legal terms, the place of arbitration
means a place where the arbitration proceeding will be held.
is paper discusses some relevant factors in determining
the place of arbitration. ese include the skills of arbitrators,
facilities, conveniences, costs and political factors, but
the most important consideration is the legal environment.
Failure to make a clear choice of the place of arbitration in
arbitration agreement may lead to unexpected results. Problems
may arise if the parties do not state clearly where the
arbitration will be held and how the arbitration proceeding
will be governed. e legal environment relates to the
law of arbitration, namely whether the law in the country in
which the arbitration takes place will support the proceeding
or enforce the awards without any complicated formalities.
Parties to an international commercial arbitration
are generally free to choose the place of their arbitration.
e law applicable to the arbitration proceeding will be the
law of the place of arbitration, thus it would be appropriate
to select the place where the courts favors arbitration as a
mean of dispute resolution and as little as possible interfere
with the arbitration proceeding. In conclusion, the parties
should carefully decide as to where the arbitration will be
conducted. As Law Number 30 of 1999 states, Indonesia is a
country that supports arbitration and ADR
Publication Year: 2008
Publication Date: 2008-01-01
Language: en
Type: article
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