JunHe was engaged by a central state-owned infrastructure company to assist in applying to the Central Jakarta District Court in Indonesia for the recognition and enforcement of an arbitration award made by the China International Economic and Trade Arbitration Commission (CIETAC) regarding an international construction dispute with the owner of an Indonesian power project. We successfully procured a registration order and an enforcement order by the Central Jakarta District Court, officially recognizing the award's validity and ordering its enforcement. This was the first time that a CIETAC arbitration award was recognized and enforced by an Indonesian court.
The main features of this case include:
Although both Indonesia and China are members of the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958 New York Convention), there was no established judicial precedent for recognizing and enforcing awards from Chinese arbitration institutions in Indonesia. Leveraging its resources and experience in the Southeast Asian market, JunHe assisted the client in selecting and managing an experienced team of Indonesian lawyers, laying a solid foundation for the recognition and enforcement of the award.
Indonesian law requires that the registration of foreign arbitration awards is handled by the arbitrators or by local lawyers. By referring to Indonesian law and to China's Civil Procedure Law, Notarization Law, and the Convention Abolishing the Requirement of Legalization for Foreign Public Documents and through multiple rounds of cross-border communication, JunHe clearly explained the legal procedures and document validity to the foreign arbitrators. This led to all the arbitrators signing a power of attorney, ensuring the smooth progress of the registration process.
The Convention Abolishing the Requirement of Legalization for Foreign Public Documents (the Hague Convention) officially took effect in China on November 7, 2023. JunHe established efficient communication with the notary offices and the embassies/consulates, and rapidly obtained the notarization documents and the additional certificates in the absence of any precedent.
Considering the potential for resistance from the respondent, a strong local enterprise in Indonesia, JunHe maintained efficient collaboration with the Indonesian lawyers and acted as required by the Indonesian judicial authorities, ultimately procuring the successful recognition and issuance of an enforcement order by the Indonesian court.
This case was the first instance of the Indonesian court's recognition and enforcement of a CIETAC arbitration award. It not only demonstrates JunHe's experience and capability in providing legal services related to the Belt and Road initiative but it also provides an important practical reference for bilateral judicial cooperation and arbitration award recognition and enforcement between China and Indonesia.
This case signifies the continuous enhancement of the recognition and influence of CIETAC and its arbitration awards within the international judicial system. It also provides a reliable and effective dispute resolution mechanism for protecting the rights and interests of Chinese enterprises in the Belt and Road initiative.
JunHe partner ZHOU, Xianfeng (Elvis) led the team in this project and JunHe partner HU, Yupeng (Yves HU) was responsible for the specific work.