Joinder of Third Party in Arbitration under Indonesian Arbitration Law

Abstract

Arbitration proceeding derives from an arbitration agreement, hence if there is no consent from all of the disputing parties, it is impossible for a third-party that is a non-signatory to an arbitration agreement to join an on-going arbitral proceeding in most jurisdictions. In Indonesia, joinder of third-party is regulated under Article 30 Law Number 30 of 1999 on Arbitration and Alternative Dispute Resolution. This study will analyze the joinder regulation in Indonesia, comparing it with the practice in Indonesia and arbitration laws in another countries. This paper is written in normative juridical method that will be connected to the practice of joinder in Indonesia. Conclusively, joinder of third party is stipulated in Article 30 Law Number 30 of 1999. However, this article absents on explaining further about the form of joinder and also the condition should be applied. For more certainty, Law No 30/ 1999 needs to be revised, namely regarding the form of third-party joinder, justification for the joinder of third parties, and whether third parties can defend their own interests or must defend the interests of the disputing parties. Moreover, further requirements such as at what stage a third party can join in the arbitration process and the criterions of “elements of related interest” under this article must also be explained.

Keywords: Arbitration, Joinder of Third Party, Indonesia Arbitration Law

DOI: 10.7176/JLPG/123-04

Publication date:August 31^st 2022