Supreme Court Encourages Government to Develop International Private Law Instruments
I Gusti Agung Sumanatha Praktik, Head of the Civil Chamber of the Supreme Court, stated that national competitiveness in resolving international cross-border commercial disputes needs to be enhanced. This is especially true given its current scope, which also includes aspects of environmental law, investment, and so on. He encouraged the government to develop international private law instruments. “In principle, cross-border dispute resolution is an important aspect to support global efforts to improve the welfare of world citizens by increasing trade and investment,” said Supreme Court Justice Sumanatha during a legal seminar titled “Issues in International Cross-Border Dispute Settlement” organized by the Association of Law Doctors of Universitas Pelita Harapan on Monday (26/2/2024). The sea transportation sector is one of the important commercial issues in international commercial transactions that contributes to global economic movement. Statistical data reports that around 80% of world commodities are transported by sea. The volume of cross-sea trade continues to show an increasing trend. The volume of cargo transported by ships increased from 4 billion tons in 1990 to 11 billion tons in 2021. Meanwhile, its capacity has increased by 43% or as much as 2.1 million tons in 2021. As a maritime nation, Indonesia is an important constituent of the sea commercial strategy. In an era of interconnected global economy, special attention to the parties’ choices in resolving disputes is very important. Sumanatha said that *freedom of contract* and *pacta sunt servanda* are two principles of civil relations that support the rapid development of the global business system. “It is not surprising that nowadays the trend, besides harmonization and unification, is that dispute resolution mechanisms are adjusted,” he said. Currently, what is called dispute resolution and alternative dispute resolution is not just about mediation and arbitration. Many international commercial courts have been established to provide options for parties to resolve their disputes in specific ways. Sumanatha gave examples of Singapore, Dubai, the Netherlands, and China, which have followed this trend. Sumanatha said that the legal framework currently in force in Indonesia for cross-border dispute resolution has not developed much. Its content still refers to civil procedure rules that have been in effect since the colonial era. “As a result, the space for Indonesian courts to resolve complex cross-border cases or disputes that interact with foreign courts becomes very limited,” he said. Currently, international private law in Indonesia is still in the development stage. The government only became involved in the apostille convention in 2021. In addition, the government is currently considering becoming a member of The Hague Conference on Private International Law. “In the next 1-2 years, we might see the results of this effort,” Sumanatha said. He acknowledged that the Supreme Court has strongly encouraged the government to accelerate the development of international private law. In mid-2023, Supreme Court Chief Justice Muhammad Syarifuddin even sent a letter to the government. It requested special attention to various international private law instruments that are important for increasing national competitiveness in cross-border dispute resolution. “The government’s political will in this regard is very strong, and several conventions that we can ratify could be realized in the near future,” Sumanatha said.