Indonesia proposes Singapore-style arbitration to attract investors

Indonesia’s Coordinating Maritime Affairs and Investment Minister, Luhut Pandjaitan, has proposed adopting arbitration rules similar to those in Singapore to enhance investment appeal, including for family offices. Speaking at the Simbara launch, Luhut emphasised the need for non-appealable arbitration decisions to ensure legal certainty and reduce potential for corruption. He cited Singapore, Abu Dhabi, and Hong Kong as successful examples where final arbitration attracts significant investment. Indonesia, which ratified the 1958 New York Convention, lacks its own international arbitration court but allows for Supreme Court appeals under its current law. Luhut believes implementing strict arbitration rules could significantly boost Indonesia’s attractiveness to global investors and family offices.