TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Time for Indonesia to join Singapore convention on mediation
There are multiple benefits from being a signatory to the Singapore Convention. For Indonesia, it would represent an opportunity to elevate its standing as a viable business destination for foreign investors and businesses.
Change Size
Singapore's Marina Bay skyline, illuminated at night, Feb 18. (The Straits Times/ANN/-)
T
he Singapore Convention on Mediation (the Singapore Convention), an international trade dispute resolution treaty, opened for signature in Singapore on Aug. 7, and saw 46 signatories, which represents the highest-ever number of first-day signatories of a United Nations trade convention. Indonesia, unfortunately, was not one of the 46 signatories.
The signing and ratification of the Singapore Convention marks a milestone in the development of mediation practice and brings countries closer to a tipping point — the moment when a smoother path is paved for international trade and commerce with the backing of a mature, rule-based dispute resolution framework.
There are multiple benefits from being a signatory to the Singapore Convention. For Indonesia, it would represent an opportunity to elevate its standing as a viable business destination for foreign investors and businesses.
This article examines the potential benefits to Indonesia from being a signatory to the Singapore Convention, and discusses the inherent compatibility between the objectives of the Singapore Convention and Indonesian values and culture.
Mediation is a process for resolving disputes by which a third party mediator assists the parties in negotiating and eventually reaching a mutually agreed settlement. In recent years, mediation has gained popularity as a method of dispute resolution for many businesses and investors as it strives to ensure that parties arrive at a mutually agreed solution to a dispute.
In today’s global business environment, where long-lasting commercial relationships are favored and settlements are sought with minimum disruption to existing business activities, parties in conflict particularly value mediation as a constructive process that helps them preserve friendly relationships and meet the interests of both parties.
It is indisputable that Indonesia’s economy is on the rise; with robust economic growth, a huge internal market and a stable political environment, Indonesia has become an increasingly attractive investment destination. At the same time, the international business sector in Indonesia is no stranger to disputes, owing to its multinational and multifaceted nature.
