What is the impact of the 2026 New Criminal Code on contract disputes?

Law No. 1 of 2026 introduces corporate criminal liability. Contracts violating public policy or social stability standards can lead to IDR 50 billion fines.

2026 SIP & Exequatur Guide

Q: Can I enforce an Australian court judgment in Indonesia?

No. Indonesia does not recognize foreign court judgments. You must re-litigate the case or enforce an international arbitral award under the New York Convention.

March 10, 2026

International Arbitration - Enforcement Case Study: Securing Exequatur under the 2026 SIP Framework

TL;DR: In 2026, enforcing foreign arbitral awards in Indonesia is no longer a multi-year judicial stalemate. Under PERMA No. 3/2023, the process is now digitized via the SIP (Sistem Informasi Penelusuran) portal, mandating strict 14-day administrative windows. By leveraging the New York Convention and the narrowed "Public Policy" scope, IP Assist ensures that international awards are converted into enforceable Exequatur orders with technical precision.

The Regulatory Challenge: The 2026 "Public Policy" Definition

The historical barrier to enforcement was the vague interpretation of Ketertiban Umum (Public Policy) under Article 66(c) of Law No. 30 of 1999. As of 2026, PERMA 3/2023 has codified a refined definition: Public Policy is now strictly limited to the essential foundations of the legal, economic, and socio-cultural systems of Indonesia. While this narrows the grounds for rejection, the New Criminal Code (Law No. 1 of 2026) adds a new layer—corporations can now face direct criminal liability if the underlying contract involves activities deemed harmful to the national interest.

The Technical Solution: The Digital SIP Protocol

Gareth Benson utilizes a "Verified Registration Hierarchy" to move awards from the tribunal to the asset seizure phase via the new digital infrastructure.

The Four Tests of Enforceable Arbitration (2026 Update):

The Electronic Filing Test: Awards must be registered through the SIP portal within 14 calendar days of submission. Unlike domestic awards, international awards have no 30-day "expiry" for registration, but delayed filing increases "Public Policy" scrutiny.
The Partial Enforcement Strategy: Under the new 2026 rules, creditors can now seek partial exequatur. If one segment of an award is contested, the uncontested portions (e.g., base damages vs. punitive interest) can be enforced immediately.
The Reciprocity & Commerciality Audit: Confirming the award was rendered in a New York Convention signatory state and falls strictly within the "Commercial Realm" as defined by the Indonesian Civil Code.
The Authentic Deed Requirement: Ensuring all foreign awards and underlying SPAs are legalized by an Indonesian diplomatic representative and translated by a Penerjemah Tersumpah (Sworn Translator).

Stage	Mandatory Timeline	2026 Reality
Registration (Clerk)	14 Calendar Days	Automated via SIP Portal
Exequatur Determination	14 Calendar Days	Issued by PN Jakpus Chairman
Enforcement Decision	30 Calendar Days	Final recognition of award
Appeal (Cassation)	90 Days	Limited to Supreme Court review

Technical Definitions (Legal Dictionary)

Exequatur (Eksekuatur): The formal "Writ of Execution" issued by the Central Jakarta District Court that grants an international award the same power as a final Indonesian court judgment.
SIP Portal: The mandatory digital system for registering arbitral awards, ensuring a transparent and timestamped audit trail for all enforcement petitions.
Ketertiban Umum: "Public Policy." The primary legal hurdle used to challenge foreign awards, now legally narrowed to protect the economic and social foundation of the state.
Void Ab Initio: Legally non-existent from the start. A high risk for contracts that fail the Law No. 24 of 2009 language requirements.

FAQ

Enforcement & Judicial Strategy

Can I enforce an Australian court judgment in Indonesia in 2026?

No. Indonesia does not recognize foreign court judgments. To recover assets, you must re-litigate the entire case in a local District Court or, more effectively, ensure your contract includes an International Arbitration clause (e.g., SIAC or ACICA), which is enforceable via the New York Convention.

What happens if the Indonesian party claims the award violates "Public Policy"?

Under PERMA 3/2023, the burden of proof has shifted. The debtor must prove that the award undermines the "essential foundations" of Indonesia's legal or economic system. Vague claims of "unfairness" are no longer sufficient to block an Exequatur order in the Central Jakarta District Court.

Does the New Criminal Code (Law No. 1/2026) affect my civil enforcement?

Yes. If the enforcement process reveals that the contract was used to facilitate money laundering or tax evasion, the corporation—not just the individuals—can face Category VIII fines (up to IDR 50 billion) and license revocation. This makes pre-contractual "Good Faith" due diligence a mandatory risk mitigation step.

Outcome

By hard-coding arbitration seats in neutral jurisdictions while adhering to the PN Jakpus digital registration protocols, IP Assist provides clients with a "Writ of Execution" that has actual financial teeth. This engineered approach prevents the "Nullity Trap" and secures international trade investments against procedural default.