Prof. Afifah Kusumadara: P3P Model For Dispute Resolution Based on Court Choice  

Prof. Afifah Kusumadara, SH. LL.M. SJD was inaugurated as Professor in the field of International Private Law

Prof. Afifah Kusumadara, SH. LL.M. SJD was inaugurated as Professor in the field of International Private Law, Thursday (11/28/2024), at the Samantha Krida building, Universitas Brawijaya (UB). She is the 9th active Professor at the Faculty of Law, and the 210th active Professor at UB, as well as the 386th Professor of all Professors that UB has produced.

She delivered a scientific oration entitled “P3P Model for Dispute Resolution Based on Court Choice”.

Currently, many parties in Indonesia are involved in cross-border commercial contracts that contain choice of court clauses, where the parties agree to choose a particular court, either in Indonesia or another country, to resolve disputes between them.

Because of Indonesian civil procedure law does not explicitly regulate the choice of court that refers to foreign jurisdiction, courts in Indonesia often do not recognize the authority of foreign courts chosen by the parties. Indonesian courts still try disputes between the parties, even though the parties have chosen a foreign court in their choice of court agreement.

When Indonesian courts do not recognize the authority of courts of other countries chosen by the parties, Indonesian courts have created legal uncertainty regarding the implementation of the principle of party autonomy and the choice of court agreement that has been legally agreed by the parties. Uncertainty about the authority of the court chosen by the parties results in increased dispute resolution costs and reduces the ease of doing business in Indonesia.

The P3P (Parties’ Choice of Court) model discussed is “settlement of international civil disputes based on the parties’ choice of court”. This dispute resolution model is a model that is in accordance with the principle of freedom of contract which gives the parties to the contract the right to make their own provisions for themselves, including dispute resolution provisions.

This model is new since Indonesian law does not regulate the authority of foreign courts that are often chosen by parties in international contracts. This is not regulated in Indonesian laws and regulations, because the Civil Procedure Code prioritizes the principle of the plaintiff suing at the defendant’s place, rather than in the court chosen by the parties.

Therefore, the model offered here will be able to create legal certainty and provide efficient dispute resolution to attract foreign investors and increase Indonesia’s Business Ready ranking. However, on the other hand, this model may cause unrest among Indonesian judges who want to maintain the judicial power granted by the Constitution. [Irene/UB PR/ Trans. Iir]