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IFCCI Forum Group Discussion - Mediation: The Cost Effective and Efficient Way of Resolving Commercial Disputes

IFCCI has organized a Forum Group Discussion on "Mediation: The Cost Effective and Efficient Way of Resolving Commercial Disputes” on 1 March 2016 at Batur Room, Mercantile Athletic Club.


When you do business, there are bound to be disputes. Mediation is an alternate dispute resolution that is confidential in nature and is growing in Indonesia because of the procedure in the Supreme Court of Indonesia. In a court dispute, you are now required to go through mediation with either a private mediator or judge mediator appointed by the court before trial according to Regulation of the Supreme Court No. 1 of 2016.

There are two types of mediation: court mediation and private mediation. The decision resulting from mediation does not come from the mediator; the mediator simply assists the parties in dispute to attain their main interests of both parties. The cost of a meditation process varies depending on a few, such as using a single mediator or co-mediators. The parties are in control during mediation, and the process can last a month, a year, or even a day. In mediation, there is no agreement until both parties agree, so the result is not forced. Mediation can also occur outside of a court case. However, if at least one party is unwilling to mediate, the mediation process cannot continue because mediation is a voluntary process.

For mediation, a well-trained and experienced mediator, a conducive environment, the parties in dispute who are the people who can be the decision makers of the dispute or have direct access to the decision maker (i.e. lawyers) are needed. The mediator is to watch how the parties are communicating and the dynamics of the situation to determine where the parties are in the dispute, look at the options they have before them,  what they hope to achieve from that, how long it will take, and also the cost. In cross-border commercial disputes, the mediator must have a special advantage regarding how people do business in their countries which will allow them facilitate the interests of both sides.

In this forum group discussion, there was a thorough discussion regarding mediation and its process. In the middle of the discussion, a skit was used to help better demonstrate what actually happens during mediation. The understanding of mediation is key. When the mediation process begins, the parties do not want to communicate and there is a wall between them. Mediators help to calm the situation down and help start the communication again between the parties. During the mediation process, the mediator may need to meet with each party privately (called separate meetings) to better understand the interests of each party and where they are coming from. This demonstration was very helpful to better understand the skills and the on-goings being used during mediation.

Thank you to Ms. Jolene Goh, Senior Business Development Executive at Singapore International Mediation Centre (SIMC), Mr. Raymond Lee, Senior Advisor at the Indonesian Mediation Center (Pusat Mediasi Nasional, PMN), and also Mr. Made Barata from Mochtar Komar Karuwin Law Firm as the moderator of this event.

We believe the participants found the discussion informative and fruitful. Thus, we appreciate the valuable contribution of each speaker’s presentation which have given us a better understanding of mediation and the process itself.

Once again, thank you to those who attended this interactive group discussion. We look forward to having another fruitful discussion with all of you in the next IFCCI forum group discussion.


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