Determine the Arbitration Institution
It should be understood that arbitration is a way to settle a civil dispute outside the general court based on an arbitration agreement made in writing by the parties to the dispute. Arbitration agreements (in the form of clauses or standing alone) can be made before or after a dispute arises, it is based on Article 1 number 1 and number 3 of Law Number 30 of 1999 concerning Arbitration and Alternative Dispute Resolution (“Law 30/1999”).
In the arbitration agreement referred to naturally as mentioned in Article 9 paragraph (3) letters c and d of Law 30/1999 the parties can determine who becomes the arbitrator or the arbitral tribunal, in addition the parties can also determine the place of the arbitrator or the arbitral tribunal will take a decision .
Arbitration institutions are bodies chosen by the parties to the dispute to give decisions regarding certain disputes; the agency can also provide binding opinions regarding a particular legal relationship in the event that a dispute has not arisen. [1]
The selection of dispute resolution through arbitration can be carried out using national or international arbitration institutions based on the agreement of the parties, but also according to the rules and procedures of the chosen institution, unless determined otherwise by the parties. [2]
In the Indonesian Advocates article Affected by the Divisions of the National Arbitration Board, it was explained that the resolution of disputes through arbitration is indeed related to trust. Ahmad Fikri Assegaf believes that the arbitration must have a good track record.
Seeing this opinion, it can be understood that in determining the criteria of an arbitration institution, of course it is based on credibility, quality, and the main thing is the track record of an arbitration institution (national or international) in resolving a dispute.
Read too : Arbitration as an Alternative Dispute Resolution Outside the Court
Arbitration Fee Charges
Alfin Sulaiman stated in the article Arbitration and Mediation Similarities and Differences that the arbitration results are win-lose judgment. In our opinion, this will affect who pays arbitration fees. Therefore in the arbitration agreement the parties have stated their willingness to bear all costs required for the resolution of the dispute through arbitration. [3]
Because in the arbitration agreement the parties have agreed to bear the costs required, then the arbitration fee is borne by the losing party, because the losing party pays the arbitration fee based on Article 77 paragraph (1) of Law 30/1999.
In addition, the arbitrator shall determine the costs of the arbitration, such costs include: [4]
arbiter honorarium;
travel costs and other costs incurred by the arbitrator;
witness costs and / or expert witnesses needed in the examination of disputes; and
administrative costs.
But in the event that the claim is only partially granted, the cost of arbitration is borne equally by the parties. [5]
Legal basis:
Law Number 30 of 1999 concerning Arbitration and Alternative Dispute Resolution.
[1] Article 1 number 8 of Law 30/1999
[2] Article 34 of Law 30/1999
[3] Article 9 paragraph (3) letter h of Law 30/1999
[4] Article 76 of Law 30/1999
[5] Article 77 paragraph (2) of Law 30/1999