Validity of Arbitration Settlement Agreement by the Court

Abstract

This study examines the limitations of the District Court's authority in annulling an arbitration award with a case study of Decision No. 531/Pdt.Sus-Arbt/2023/PN Bks. The results of the study indicate that the Bekasi District Court in Decision No. 531/Pdt.Sus-Arbt/2023/PN Bks has exceeded its authority by re-evaluating the substance of the arbitration award that has been decided by BANI. The court expanded the interpretation of "trickery" in Article 70 letter c of Law No. 30/1999 to include differences in interpretation of facts that should be outside the scope of the annulment examination. This study identifies the need for the construction of clear limitations of authority for the court in examining the annulment of an arbitration award to maintain a balance between court supervision and the independence of the arbitration institution.