Jakarta, March 2025. Our firm has successfully defended our client, PT Risland Sutera Property (part of Country Garden group of companies), a project owner as one of the Defendants, in a construction contract dispute with its contractor as Claimant.
The Supreme Court of the Republic of Indonesia has ruled to reject the cassation filed by the Claimant as contractor and upheld the decision by the High Court of Jakarta as well as by the District Court. In its decision, the Supreme Court considered that since the claim of the Claimant as contractor is related to the unilateral termination of the Construction Contract and the liquidation of the bank guarantee in which the parties have agreed to settle any dispute through arbitration, then the district court is unauthorized to examine and try the dispute.
Commenting to this decision, our Dr. Eddy M. Leks says, “It is pleasing to see consistency by the different stages of Indonesian courts in applying the Arbitration Law and appreciating the existence of an arbitration agreement in an underlying contract. This also reminds every disputant to adhere to the arbitration agreement and to settle any dispute between them through an agreed arbitration procedure, not finding a way to illegitimately settle it through a court proceeding.” Dr. Leks was assisted in this case by Fitri Nabilla Aulia, one of our dedicated associates.
Leks&Co is a recommended firm on commercial dispute resolution by Legal500, asialaw, and Benchmark Litigation.
One Client says, “We have been using Leks&Co Lawyers services and found their professionalism and expertise are beyond expectation. They have provided us with wide range of legal advisory and represented us in litigation cases to our best satisfaction.” Salah A. Saeed, Managing Director of Pacific Group.
