PENYELESAIAN SENGKETA ARBITRASE KOMERSIAL INTERNASIONAL (Studi Kasus Satelite Kementerian Pertahanan Vs Navayo International Ag)

Abstract

The refusal by the Ministry of Defense of the Republic of Indonesia (Kemenhan) to comply with an international arbitral award in its dispute with Navayo International AG before the International Chamber of Commerce (ICC) in Singapore raises fundamental legal questions concerning the enforceability of foreign arbitral awards in Indonesia. Kemenhan invoked public policy exceptions and sovereign immunity over state assets to challenge enforcement. This case exemplifies the normative tension between Indonesia’s international obligations under the 1958 New York Convention and the domestic application of Law No. 30 of 1999 on Arbitration and Alternative Dispute Resolution. Using a normative juridical approach, this study examines the scope and interpretation of the public policy exception by national courts, as well as its implications for legal certainty in cross-border commercial dispute resolution. The findings reveal a normative disharmony between statutory law and judicial practice, necessitating legal reform and enhanced institutional competence in international contracting among state entities.