Commercial dispute center opened by minister

Commercial dispute center opened by minister

Fitri Wulandari, The Jakarta Post, Jakarta

Coordinating Minister for the Economy Dorodjatun Kuntjoro-
Jakti officially opened on Thursday an independent mediation
center which is intended to help businesses reach out-of-court
settlements in commercial disputes.

Dorodjatun, in his opening speech, blamed commercial disputes
among businesspeople for creating uncertainty in the country's
business environment, which contributed to the slowdown in the
country's economic growth.

Many such cases have occurred because the parties
misinterpreted the existing laws, he said.

"Therefore, the role of a mediation center to settle
commercial disputes is important," Dorodjatun said in his speech
to inaugurate the Indonesian Mediation Center (PMN).

A speedy settlement of commercial disputes is expected to
eventually boost the real sector, he asserted.

Indonesia has become notorious for its corrupt judicial
system, a situation which has frustrated the business community
and created legal uncertainty.

Denaldy M. Mauna, the chairman of PMN said the center was
established in line with an increasing need from the public for a
fast, effective and efficient settlement of commercial disputes.

"Based on experience, such cases have a better chance for
settlements when the parties use the service of mediators," he
told The Jakarta Post on Friday.

"In mediation, settlement comes from parties involved. What
they get is a win-win solution," he said, adding that disputing
parties can also save time and money when using the service of
mediators.

PMN is open to any party who wants to resolve a commercial
dispute. It offers mediation services for a wide range of
commercial disputes, including wage issues, debt restructuring
and big business transactions.

Members of PMN are professional mediators, most of whom have
been working at the Jakarta Initiative Task Force (JITF), which
has received praise for its success in mediating disputes between
foreign creditors and the country's private sector.

Established in 1998 upon the request of the International
Monetary Fund (IMF), JITF was tasked to help restructure huge
dollar-dominated debts owed by the private sector to their
creditors, mostly outside of Indonesia.

JITF has successfully helped restructure over US$20 billion in
private debts.