Business players support mediating institution<\/p>\n
Fitri Wulandari, The Jakarta Post, Jakarta<\/p>\n
Business players say the establishment of an independent
\nmediation center could provide an alternative means of settlement
\nfor commercial disputes amid the country's murky legal system.<\/p>\n
\"We supports this kind of mediating institution. In principle,
\nPertamina prefers to settle commercial disputes through
\nmediation,\" Simson Panjaitan, a legal counsel for state oil and
\ngas company Pertamina told The Jakarta Post on Friday.<\/p>\n
Simson said compared to litigation and arbitration, settling
\ncommercial dispute through mediation had more advantages.<\/p>\n
\"It's fast, less expensive and reliable. In litigation or
\narbitration, there is always a loser and a winner. Mediation
\nprovides a win-win solution that satisfies both parties,\" he
\nsaid.<\/p>\n
Although a bit skeptical about the center's future, chairman
\nof the Indonesian Employers Association (Apindo) Sofjan Wanandi
\nsaid the center could help businessmen who were apprehensive
\nabout the country's judicial system.<\/p>\n
\"Well ... let's give it a try. Why not have a mediation
\ncenter. Then, we won't have to go to court,\" he said.<\/p>\n
Simson and Sofjan were both commenting on the establishment of
\nthe National Mediation Center (PMN), an independent institution
\nthat is to provide mediation services to businessmen to settle
\ncommercial disputes.<\/p>\n
In a press conference on Thursday, PMN executives said the
\nagency was equipped with professional mediators from former
\njudges of the supreme court, law practitioners to respected
\nindividuals. Most of them were formerly mediators with the
\nJakarta Initiative Task Force (JITF).<\/p>\n
Simson said to make PMN successful, it should be backed up by
\nexperts who can make the institution a reliable mediator.<\/p>\n
\"The mediators should be reliable, capable and understand the
\ncases. They have to be able to maintain the mediation process so
\nthat it comes out with satisfying results,\" he said.<\/p>\n
Sofjan, however, is skeptical that such a mediation center
\ncould be successful. Particularly, as mediation does not seem so
\npopular among Indonesian businessmen.<\/p>\n
\"It may work for foreign businesses. But for local
\nbusinessmen, some of them prefer to turn to close colleagues who
\nknow the disputed parties to help mediate their disputes,\" Sofjan
\nsaid.<\/p>\n
\"Besides, it depends on the goodwill of the disputing parties.
\nSo, it may not be successful,\" he added.<\/p>\n
Sofjan further added, it may work for small cases but not big
\ncases such as ones involving huge debts.<\/p>\n
\"Usually, they prefer to go to court or even hire thugs to
\nforce creditors to pay their debt,\" he said.<\/p>\n
Meanwhile, Simson said Pertamina was now looking at settling
\nits prolonged dispute with independent power producer Karaha
\nBodas Company (KBC) through mediation.<\/p>\n
The dispute started when former president Soeharto suspended
\n27 power projects owned by independent power producers, including
\nKBC in 1998 as part of an agreement with the International
\nMonetary Fund (IMF).<\/p>\n
Following the suspension, KBC filed a lawsuit against
\nPertamina, seeking a staggering US$261 million in compensation.<\/p>\n
Since then Pertamina has been mired in a protracted court
\ndispute with KBC.<\/p>\n
I-box:
\nHow will the NMC work?<\/p>\n
1. Pre-mediation
\n- One of the disputing parties registers with the NMC
\n- The party then appoints a mediator from the NMC roster
\n- The mediator will conduct a meeting with all parties to explain
\nthe role of mediators, procedures and cost.<\/p>\n
2. Negotiation
\n- The mediator meets with each party in separate meetings to
\ngather initial information
\n- Mediators and disputed parties meet to define their problems,
\ninterests, and needs.
\n- Mediators assist parties to develop their own solution to the
\nproblem
\n- They negotiate an agreement based on alternative solutions
\nproposed by the mediator<\/p>\n
3. Final stage
\n- Once they reach a consensus, they will sign a memorandum of
\nunderstanding that binds all parties.
\n- In a case where parties cannot reach an agreement, they then
\nsubmit a resignation letter explaining the reasons for abandoning
\nthe process.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/business-players-support-mediating-institution-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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