Indonesia remains one of the most attractive global markets for inward investment by international businesses. While the economies of North America and Western Europe have been shrinking since 2007, the economy of Indonesia has grown by an average of 5.6% throughout 2007-2009. 2010 is likely to see the trend continue.
Yet there are significant challenges and obstacles faced by multinational corporations (MNCs) investing into, and doing business in, Indonesia. Not least of these is the legal system. Courts, various legal institutions and numerous regulators can pose serious risks to the investments and accumulated value of commercial businesses. In few places are the techniques of so-called investment protection so important.
The courts of any country are its default dispute resolution mechanism. Alternative dispute resolution (ADR), most significantly arbitration, represents an alternative to the national courts.
The court system in Indonesia brings its own set of peculiarities and challenges for both...