Court-annexed mediation constitutes a mandatory stage in civil proceedings in Indonesia, requiring the parties attempt dispute resolution first through negotiation with the assistance of a mediator before the examination of the merits of the case proceeds. The mediation process is governed by Supreme Court Regulation No. 1 of 2008 concerning Court-Annexed Mediation Procedures in conjunction with Supreme Court Regulation No. 1 of 2016 concerning Procedures for Mediation in Courts (“PERMA 1/2016”).
In civil disputes/claims, except for those stipulated under Article 4 paragraph (2) of PERMA 1/2016, mediation is a compulsory process that must be undertaken by the parties, both the plaintiff and the defendant, before proceeding to the substantive examination of the case. In addition, the disputing parties are required to attend the Mediation meetings in person, with or without being accompanied by legal counsel.
The mediation process must also be conducted in good faith by the parties. Under PERMA 1/2016, the Supreme Court imposes strict sanctions on parties who do not act in good faith during the mediation process. Article 7 paragraph (2) of PERMA 1/2016 sets out several examples of conduct considered as bad faith in mediation, including the following:
a. failing to attend mediation meetings after being properly summoned twice consecutively without a valid reason;
b. attending the first mediation meeting but subsequently failing to attend the following meetings despite having been properly summoned twice consecutively without a valid reason;
c. repeated absences that disrupt the mediation schedule without a valid reason;
d. attending mediation meetings but failing to submit and/or respond to the other party’s case summary (Resume Perkara); and/or
e. refusing to sign a mutually agreed draft Settlement Agreement without a valid reason.
If any of the actions mentioned above are committed by the Plaintiff, the legal consequences may be significant. Pursuant to Article 22 paragraphs (1) and (2) of PERMA 1/2016:
- If the Plaintiff is declared to have acted in bad faith during the mediation process as referred to in Article 7 paragraph (2) of PERMA 1/2016, the claim shall be declared inadmissible by the examining judge.
- The Plaintiff who is declared to have acted in bad faith shall also be obligated to bear the mediation costs.
This is consistent with one example/precedent in Decision No. 113/Pdt.G/2025/PN Cbn, in which the Panel of Judges essentially declared that the Plaintiff had acted in bad faith during the mediation process, and subsequently ruled that the Plaintiff’s claim was inadmissible. The considerations of the Panel of Judges in Case No. 113/Pdt.G/2025/PN Cbn were as follows:
“Considering that the absence or non-cooperative conduct of the Plaintiff during the mediation process without valid reason is deemed an act of bad faith as referred to in Article 7 paragraph (2) of the PERMA.”
“Considering that pursuant to Article 22 paragraph (1) of the PERMA on Mediation, where the Plaintiff is declared to have acted in bad faith, the claim shall be declared inadmissible by the Examining Judge and such decision constitutes a final judgment declaring the claim inadmissible.”
| “Considering that the absence or non-cooperative conduct of the Plaintiff during the mediation process without valid reason is deemed an act of bad faith as referred to in Article 7 paragraph (2) of the PERMA. ” | “Menimbang, bahwa ketidakhadiran atau sikap tidak koperatif dari Penggugat pada proses mediasi tanpa alasan yang sah dianggap sebagai tindakan yang tidak beritikad baik sebagaimana dalam Pasal 7 ayat (2) PERMA tersebut.“ |
| “Considering that pursuant to Article 22 paragraph (1) of the PERMA on Mediation, where the Plaintiff is declared to have acted in bad faith, the claim shall be declared inadmissible by the Examining Judge and such decision constitutes a final judgment declaring the claim inadmissible.” | “Menimbang, bahwa sesuai ketentuan Pasal ayat 22 (1) PERMA Mediasi yang menyatakan dalam hal Penggugat dinyatakan tidak beritikad baik, maka gugatan dinyatakan tidak dapat diterima oleh Hakim Pemeriksa Perkara serta mengeluarkan putusan yang merupakan putusan akhir yang menyatakan gugatan tidak dapat diterima.“ |
However, if the Defendant is declared by the Panel of Judges to have acted in bad faith during the mediation process as referred to in Article 7 paragraph (2) of PERMA 1/2016, the Defendant shall be obligated to bear the costs incurred for the entire mediation process.
Based on the foregoing, it can be understood that good faith in the mediation process is not merely a formality, but rather an obligation that must be fulfilled by the parties as regulated under PERMA 1/2016. Absence without valid reason or non-cooperative conduct during the mediation process may result in legal consequences, including the possibility that a claim may be declared inadmissible by the Panel of Judges. Therefore, it is important for the parties to participate in the mediation process according to the applicable procedures to ensure that the dispute resolution process can proceed effectively and that the legal interests of the parties remain protected.
Disclaimer:
This article provides an analysis of the implementation and regulation of court-annexed mediation in civil proceedings under Indonesian law, particularly under Supreme Court Regulation No. 1 of 2016 concerning Procedures for Mediation in Courts, with a focus on the obligation of good faith and its legal consequences for the parties. This article is prepared solely for informational and academic purposes and does not constitute legal advice. Readers are advised not to act or rely solely upon the information contained herein without first obtaining appropriate professional legal advice. Laws and regulations, as well as their interpretation, may change over time, and their application may vary depending on the specific facts and circumstances of each case. For specific legal advice or further clarification regarding the matters discussed in this article, consultation with a competent legal advisor is recommended.
Perdana & Rekan
April 2026