Mediation In
Nusa Tenggara Timur, Indonesia

State Laws

As a unitary state, Indonesia applies national laws uniformly across all provinces including East Nusa Tenggara (Nusa Tenggara Timur). The primary legal framework governing mediation and alternative dispute resolution is Law No. 30 of 1999 on Arbitration and Alternative Dispute Resolution, which regulates arbitration, mediation, conciliation, negotiation, consultation, and expert judgment. East Nusa Tenggara follows the national legal framework without special autonomous status. The province operates under the same national dispute resolution procedures as other Indonesian provinces.

Licensing Requirements

Indonesia does not have a national licensing or accreditation system for mediators. However, PERMA No. 1 of 2016 establishes requirements for court annexed mediators, who must complete training and certification programmemes approved by the Supreme Court. Private mediators may obtain certification from institutions such as Pusat Mediasi Nasional (PMN) or other recognised training providers. There is no statutory requirement for mediators to be lawyers, though many practising mediators have legal backgrounds. The Supreme Court maintains a registry of certified mediators eligible for court annexed mediation.

Local Court Systems

East Nusa Tenggara's court system consists of the High Court (Pengadilan Tinggi) in Kupang, district courts (Pengadilan Negeri) in major cities including Kupang, Maumere, Ende, and other districts, and religious courts handling family matters for Muslim parties. All courts implement court annexed mediation under PERMA No. 1 of 2016. The Kupang District Court handles the majority of commercial and civil cases for the province. Religious courts operate in Kupang and major districts to handle family and inheritance matters for Muslim parties.

Fee Structures

Court-annexed mediation services provided by judges or court officials are free of charge under PERMA No. 1 of 2016. Private mediation fees are determined by agreement between the parties and the mediator or mediation institution. Pusat Mediasi Nasional (PMN) and other private mediation centres typically charge fees based on the complexity and duration of the case, often calculated as a percentage of the dispute value or on an hourly basis. BPSK consumer dispute mediation services are provided at minimal cost to consumers.

Bar Association Rules

The Indonesian Bar Association (Peradi) regulates the legal profession and provides guidelines for lawyers participating in mediation. Peradi encourages lawyers to promote mediation as a dispute resolution mechanism and to obtain mediation training. Lawyers acting as mediators must adhere to professional ethics codes including confidentiality, impartiality, and conflict of interest rules. The East Nusa Tenggara chapter of Peradi provides local support for mediation training and certification programmemes.

Regional Dispute Patterns

Agricultural disputes involving corn, rice, and coffee plantations, Land and property disputes related to agricultural development, Employment disputes in agriculture, fishing, and tourism sectors, Commercial disputes involving agricultural trading and tourism services, Family and inheritance disputes in rural and island communities

Legal Framework

Mediation in Indonesia is primarily governed by Supreme Court Regulations (PERMA). PERMA No. 1 of 2016 on Mediation Procedures in Court provides the comprehensive framework for court annexed mediation, replacing PERMA No. 1 of 2008 as part of the Supreme Court's bureaucratic reform. The regulation applies to civil disputes in general courts and religious courts. Article 1 of PERMA No. 1 of 2016 establishes mediation as a mandatory first step in civil proceedings. The Consumer Protection Law No. 8 of 1999 establishes BPSK (Badan Penyelesaian Sengketa Konsumen) for consumer dispute resolution through mediation, arbitration, or conciliation. The Arbitration Law No. 30 of 1999 governs arbitration and the enforcement of arbitral awards. Indonesia has signed but not yet ratified the Singapore Convention on Mediation. The legal framework actively supports ADR methods including mediation, arbitration, and conciliation across commercial, civil, and labour disputes.

While Indonesia operates under this legal framework, The Olive Branch's remote mediators bypass local court backlogs by providing swift, confidential, and mutually agreed-upon resolutions online.

Court System

Courts actively promote and facilitate mediation through PERMA No. 1 of 2016, which requires mediation as a mandatory first step in civil proceedings. Judges may refer cases to mediation before proceeding to trial. The Supreme Court has established mediation procedures to address case backlog and enhance court effectiveness. Religious courts integrate mediation into divorce proceedings as an instrument to reduce backlog. The judiciary supports mediation as an efficient alternative to litigation. Courts may adjourn proceedings to allow mediation to occur. The mediator cannot be compelled to provide testimony as a witness in related court proceedings, promoting transparent mediation processes. Court-annexed mediation is well established across general courts and religious courts.

Mediator Regulations

Mediator certification in Indonesia is accredited by the Supreme Court (Mahkamah Agung). PERMA No. 1 of 2016 Article 13 paragraph (1) establishes requirements for mediator licensing. Training centres like Justitia Training Centre are accredited by the Supreme Court to provide mediator training and certification. Pusat Mediasi Nasional (PMN) is a non-profit organisation providing mediation services and training with experienced mediators from legal, banking, and business backgrounds. Professional mediators must have Supreme Court-accredited certification. Non-judge mediators require specific certification to serve in court annexed mediation. Continuing professional development is encouraged through advanced training programmes. The certification system ensures quality standards for mediators serving in court and private mediation contexts.

Cultural Approach

Indonesian culture values musyawarah mufakat (deliberation to reach consensus), gotong royong (mutual cooperation), and respect for senior or authorised parties in dispute resolution. These traditional practices influence modern mediation approaches, with local wisdom often determining the approach to dispute resolution. The cultural preference for consensus-building aligns well with mediation principles. Court-annexed mediators are encouraged to be culturally fluent and use culturally appropriate approaches. The traditional system of musyawarah (consensus decision making) provides institutional support for mediation. However, mediators may sometimes fail to use culturally appropriate approaches, highlighting the need for cultural training. The emphasis on harmony and community consensus supports mediation's collaborative nature.

Typical Costs

Court-annexed mediation through PERMA No. 1 of 2016 is generally low-cost as part of court proceedings. BPSK consumer dispute mediation is provided at no cost to consumers as a government service. Private mediation through organisations like Pusat Mediasi Nasional charges fees based on case complexity and mediator expertise. LAPS SJK (Financial Sector Alternative Dispute Settlement Institution) charges fees for financial sector disputes. Costs vary significantly between court annexed and private mediation. The cost savings compared to litigation are significant, with mediation typically resolving disputes more quickly. Consumer dispute resolution through BPSK is free for consumers, with costs borne by the system. Private commercial mediation fees are determined by individual mediation providers.