Speedy Justice: Small Claims Process adopted by Courts

Business disputes in Indonesia are rarely taken to court. Court processes have until recently been too long and expensive. Legal costs have exceeded the value of claims. Businesses have simply refused to settle if they are strong enough or resorted to intimidation or bribing officials to create a criminal case against business rivals. This has led to unnecessary detention of people caught up in business disputes. The Supreme Court has adopted a fairer and faster small claims process for hearing claims under 20 million Rupiah (about A$20,000). Rather than the normal panel of three judges hearing claims, a single judge now must decide them within 25 days of lodgment. The judge engages actively with the parties to explore the option of settlement and, if necessary, makes a decision, which is appealable to a panel of judges at the district level, with no appeal rights to higher courts. AIPJ’s Senior Adviser for Judicial Reform, Binziad Kadafi, has prepared the following paper to explain the significance of the small claims reform