Juridical Analysis of National Arbitration Awards and Efforts to Annul Them in the District Court

Abstract

In principle, national arbitration awards are final and binding, as stipulated in Law Number 30 of 1999 concerning Arbitration and Alternative Dispute Resolution. However, in practice, many parties continue to file requests with the District Court to annul arbitration awards based on various legal grounds or reasons. This study aims to analyze the legal standing of national arbitration awards, the scope of the District Court’s authority in examining annulment requests, and the legal parameters that can be used as a basis for annulment, as stipulated in Article 70 of the Arbitration Law. This study applies a normative legal approach by analyzing various laws and regulations, court decisions, and legal doctrines. The results indicate that annulment efforts can only be carried out to a limited extent, specifically when false evidence is discovered, documents are concealed, or the decision is based on deception by one of the parties. However, in a number of cases, District Courts often broaden their interpretation of the grounds for annulment, thereby creating legal uncertainty and potentially weakening the principle of finality of arbitration. This study emphasizes the need for consistent application of norms by District Courts to maintain the effectiveness of arbitration as a mechanism.