- Introduction: A Glimpse on the BANI Arbitration Rules 2025
The Indonesian National Board of Arbitration (“BANI”) has just dropped new BANI Arbitration Rules in 2025. While the fundamental principles from the prior applicable regulations was not removed in BANI Arbitration Rules 2025, BANI introduced 4 (four) novel aspect in its 2025 rules, namely (i) Multiparty and Multicontract Arbitration, (ii) Emergency Arbitration, (iii) Failure to Act Provisions and (iv) Mandatory use of Indonesian Counsel.
- Key Highlights of BANI Arbitration Rules 2025
(i) Multiparty and Multicontract Arbitration
In BANI Arbitration Rules 2025, BANI introduces specific provisions to accommodate arbitration cases involving multiple parties or arising from multiple agreements.
Under Article 9 (1), a request for arbitration may be filed or submitted by or against multiple parties, as long as the parties can prove a clear “connection” between them.
Additionally, Article 9 (2) allows parties to submit disputes involving multiple agreements in a single arbitration, but two conditions must be met:
a. The agreements must be interconnected.
b. All agreements must designate BANI as the arbitration forum.
Given the above provisions, BANI facilitates the filing of multi-party and multi-contract arbitration requests by enabling such disputes to be handled within a single arbitration proceeding or registered under a single case number. However, BANI Arbitration Rules 2025 do not define what constitutes a “connection” between parties or agreements, leaving its interpretation open to the discretion of the arbitral tribunal or BANI itself.
(ii) Emergency Arbitrations
Another new concept in BANI Arbitration Rules relates to Emergency Arbitration under Article 17.5. This article elaborates, emergency arbitration may be applicable when the parties require urgent interim or conservatory measures. Below are the key procedural rules on emergency arbitration:
The process begins when a formal application is submitted to the BANI Secretariat. If the Chairman of BANI approves the request, the Secretariat will notify the other party and forward the application documents. The appointment of an emergency arbitrator follows swiftly within only in two working days. Once appointed, the Secretariat will then notify both parties and deliver the case file to the chosen arbitrator. If the opposing party wishes to challenge the appointment, they must do so within two days, and both the challenged arbitrator and the other party must respond within the same period.
Emergency arbitration is designed to proceed in a rapid manner. A hearing must be held no later than three days after the arbitrator’s appointment, and the proceedings must be completed within fourteen days, unless extended by a further seven days for justified reasons. The emergency arbitrator is required to issue a binding decision within fourteen days of appointment, with a possible one-time extension of up to seven days if necessary. The resulting award is immediately binding and must be complied with without delay. It is also crucial to note that the full cost of the emergency arbitration must be paid at the time the application is submitted, Failure to do so may result in the request being considered withdrawn.
(iii) Failure to Acts: Replacement of an Arbitrator
BANI Arbitration Rules 2025 acknowledges the possibility of changing the arbitrator due to Arbitrator’s Default. The arbitrator’s Default was newly introduced in BANI Arbitration Rules 2025. Under Article 13 paragraph (3), when an arbitrator fails to carry out his/her respective duties, either legally (de jure) or in practice (de facto) the BANI Chairman shall determine, at his/her discretion, whether the arbitrators shall continue or be replaced. The recusal itself refers to Article 12 of BANI Rules 2025.
(iv) Mandatory Use of Indonesian Counsel
While BANI Arbitration Rules 2022 also addressed the involvement of Indonesian legal counsel, BANI Arbitration Rules 2025 adopts a stricter approach by removing the previous qualification that limited the requirement to cases “relating to dispute subject to Indonesian law”. Under Article 5 (2), BANI Arbitration Rules 2025, foreign advisors and legal advisors must now be accompanied by Indonesian advisors or legal advisors to participate in the arbitration proceeding in BANI.
- Conclusion: Final Thoughts on BANI Arbitration Rules 2025
The prior elaboration shows that BANI Arbitration Rules 2025 represent a significant step forward in Indonesia’s arbitration framework where it introduced clearer provisions on multiparty disputes, emergency arbitration, arbitrators’ accountability and stricter foreign counsel requirements. While a few areas still lack clarity, these changes mark a solid step toward a more efficient and modern approach to Indonesia’s arbitration system.