Justice Minister: International Private Law Bill to Regulate Indonesian Courts' Jurisdiction over Foreign Civil Disputes
Jakarta — Indonesia’s Justice Minister Supratman Andi Agtas has announced that the draft International Private Law (HPI) Bill will establish the jurisdiction of Indonesian courts in handling civil disputes involving foreign elements.
Speaking at a special parliamentary committee meeting at parliament in Jakarta on Wednesday, Agtas noted that in this era of globalisation, national borders present little barrier to economic activity and digital information flows. Whilst this creates significant opportunities, it also presents new challenges in the form of civil disputes that transcend territorial boundaries.
“The state’s specific role in regulating international private law matters will directly impact Indonesia’s standing and the status of Indonesian legal subjects in international relations,” Agtas said.
The draft bill will establish principles determining when Indonesian courts possess jurisdiction, lack jurisdiction, or may decline to handle civil disputes with foreign elements. It will also establish guidance on when Indonesian law applies and will serve as a gateway statute (undang-undang portal) for the application of Indonesia’s technical and sectoral regulations.
The bill will further regulate the recognition and enforcement of foreign court judgments in Indonesia, provided such enforcement is based on reciprocal international agreements and does not contradict certain values.
As part of the national legal system, the HPI Bill will serve as a safeguard to protect national interests in global relations whilst simultaneously fostering investor confidence and a sense of security amongst foreign parties establishing civil relationships in Indonesia.
Agtas stated that the bill’s development aligns with Indonesia’s national long-term development plan (2025-2045), which directs legal development towards achieving rule of law that is just, certain, beneficial, and grounded in human rights protection.
“The enactment of the HPI Bill is expected to provide a legal foundation within Indonesia’s national law for addressing international private law issues involving Indonesia,” Agtas concluded.