Arbitrator’s Authority to Decide Ex Aequo et Bono: A Juridical Review
DOI:
https://doi.org/10.19166/lr.v23i1.7338Keywords:
Arbitration, Arbitrator, Ex Aequo et BonoAbstract
Arbitration is a dynamic practice. One of the issues to consider is the implementation of ex aequo et bono by arbitrators, which many parties see as requiring prior approval from the parties so that arbitrators can make decisions based on ex aequo et bono. This study concludes that the arbitrator's authority to decide ex aequo et bono is not derived from the parties' agreement but rather from the arbitrator's inherent authority. First, because this principle is consistent with the spirit of arbitration, the Arbitrator has the authority to decide ex aequo et bono. Second, Law Number 48 Year 2009 concerning Judicial Authority imposes an obligation to investigate, adhere to, and comprehend legal values and the sense of justice in society. Third, no provision in Law Number 30 Year 1999 concerning Arbitration and Alternative Dispute Resolution requires the parties to agree in advance on the grant of ex aequo et bono.References
Laws and Regulations
Law Number 30 Year 1999 concerning Arbitration and Alternative Dispute Resolutions.
Law Number 48 Year 2009 concerning Judicial Authority.
Law Number 12 Year 2011 concerning the Establishments of Laws and Legislations.
Law Number 13 Year 2022 concerning the Second Amendment to Law Number 12 Year 2011 concerning the Establishments of Laws and Legislations.
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