Mediation helps businesses resolve majority of the disputes swiftly, inexpensively and effectively, without engaging in protracted legal proceedings. Business partnerships are preserved as relationships are maintained. Parties arrive at flexible and creative solutions that are mutually beneficial. The Singapore Convention on Mediation has also come into force, allowing businesses to ensure that their settlement agreements are enforceable in countries that have ratified the treaty, including Singapore.
Singapore and Indonesia enjoy warm and friendly ties and both countries’ relations are underpinned by strong economic cooperation. Bilateral trade reached $59 billion in 2019, and Singapore has been the top foreign investor in Indonesia since 2014. Both countries also have substantive cooperation across a wide range of sectors, including education, culture, defence and the environment. Given the huge volume of trade, business and investments involving Indonesian businesses, the Singapore International Mediation Centre and the Indonesia Dispute Board (IDB or known locally as Dewan Sengketa Indonesia) have created a joint mediation protocol.
Following the signing of the Agreement of Cooperation in early 2023, the Joint Protocol which was signed on August 30, 2023 offers the “best of both worlds” to businesses that operate across Indonesia, Singapore and the rest of the region, overcoming physical, cultural and jurisdictional barriers to promote settlement.
One unique feature is the appointment of co-mediators. In a mediation between an Indoneisan and a non-Indonesian party, parties discuss their dispute with mediators who understand their respective jurisdiction and culture.
The Joint Protocol exploits the synergies in case management between SIMC and IDB.
(1) Mediations may be filed at either IDB or SIMC. IDB and SIMC will jointly manage mediations.
(2) Cases will be resolved by two experienced mediators, one nominated by each Centre.
(3) Parties will enjoy fixed and reduced fees adapted for the Japanese market. For example, for disputes of less than S$1.3M, each party pays S$6,955 (inclusive of GST) (see Fee Schedule below).
(4) Mediation is conducted fully online and commencing at a time between 9.00 a.m. to 10.00 a.m (Indonesia time or Singapore time, where the mediation is administered by IDB or SIMC respectively). IDB and SIMC are able to provide physical venues for mediations that will be conducted totally or partially in person. However, different rates from those set out in the Fee Schedule will apply.
(5) Settlement agreements may be enforced under the Singapore Convention on Mediation in countries that have ratified the Convention, including Singapore.
|Dispute Value (USD
|Total Fee Payable per Party (USD)*
|0.5% of Dispute Value, subject to a cap of $10,000
|0.2% of Dispute Value, subject to a cap of $12,000
*Fees may be subject to prevailing Goods and Services Tax in Singapore or Value-Added Tax in Indonesia.
*Fees payable to IDB shall be converted into Indonesian rupiah by IDB with reference to then prevailing Indonesian rupiah/ USD exchange rate.
*Fees payable to SIMC may be converted into Singapore dollars by SIMC with reference to then prevailing Singapore dollar / USD exchange rate.