28 Aug 2015
PROCEDURES FOR COMPENSATION FROM THE STATE FOLLOWING JUDICIAL DECISIONS NOW REGULATED

On 15 April 2015, the Indonesian Minister of Finance enacted Regulation No. 80/PMK.01/2015 on the Execution of Judicial Decisions. The regulation became effective a day later, on 16 April 2015.

The regulation is relevant to parties involved in court or arbitration proceedings involving the Republic of Indonesia.

Parties can demand payment following a decision by a court or an arbitral tribunal validated by the court if this meets the following criteria:

• The decision is final and binding;
• It requires the Republic of Indonesia to pay an amount of money;
• It is not part of the tasks and functions of a government ministry/body.

In order to obtain payment, a party must submit an application to the Minister of Finance. The application should be accompanied by the original copy of the decision of the court or the arbitral tribunal as well as a copy of the applicant’s identity document.
Upon submission, the Secretary General and the Head of the Legal Assistance Bureau at the Ministry of Finance examine the application and supporting documents. If documents are missing, the Head of the Legal Assistance Bureau will request the applicant for the necessary documents to be submitted.

If the submission is deemed to be complete, the Minister of Finance forms an ad hoc team to “accelerate the payment process”. The ad hoc team will be responsible for second stage verification and organise all aspects of the payment process.
The ad hoc team reports on the progress of the procedure to the Minister of Finance via the Secretary General. In the event of shortcomings, the Minister of Finance may order the ad hoc team to review procedures.

If the Minister of Finance approves the report, the Secretary General will inform the Echelon Level I Leadership to pay the compensation in accordance with prevailing laws and regulations. (by: Theodoor Bakker, Gustaaf Reerink and Emir Nurmansyah)