table of contents
Share This Story, Choose Your Platform!
hen legal disputes arise—whether personal, commercial, or corporate—many parties assume that litigation (going to court) is the only path forward. However, in Indonesia, mediation is an increasingly recognized and even mandatory first step in many civil cases. Choosing between litigation and mediation requires a clear understanding of both mechanisms, their procedures, legal frameworks, and the outcome you’re seeking.
This article outlines the differences between litigation and mediation in Indonesia, legal basis for each, and how to decide which is right for your case.
What Is Litigation?
Litigation is the formal legal process of resolving disputes through the courts. It involves filing a claim, presenting evidence before a judge, and obtaining a binding decision.
Key Characteristics
Legal Basis of Litigation in Indonesia
Litigation in Indonesia is governed by:
What Is Mediation?
Mediation is a non-adversarial process where a neutral third party (mediator) helps disputing parties reach a voluntary, mutually acceptable solution—without court ruling.
Key Characteristics
Legal Basis of Mediation in Indonesia
Mediation is recognized and encouraged under:
🔔 In civil court cases, mediation is mandatory before proceeding to trial (Perma 1/2016, Article 4). If parties skip this step, the lawsuit can be considered procedurally flawed.
When Is Mediation the Right Choice?
Mediation is suitable for:
- Business contract disputes
- Family or inheritance conflicts
- Workplace disagreements
- Civil matters where parties are open to compromise
- Disputes where ongoing relationships matter
Mediation is not recommended if:
- One party is uncooperative or in bad faith
- The case involves criminal allegations or serious fraud
- Legal precedent or a formal ruling is required
When Is Litigation Necessary?
Litigation is the proper path when:
- There is no willingness to settle
- You need a legally enforceable judgment
- Evidence or third-party involvement requires judicial review
- The dispute involves complex law, public interest, or government institutions
Hybrid Options: Mediation Within Litigation
In Indonesia, court-connected mediation is mandatory in civil trials. This means you can still settle out of court while inside the legal process, especially during the early stages.
If settlement is reached, the agreement can be legalized (akta perdamaian) and becomes binding and enforceable like a court ruling.
At AUFAR & Co, we provide legal representation in both litigation and mediation across a wide range of disputes—including commercial, family, property, and employment cases.
We help clients:
- Assess the best strategy for their situation
- Draft or review mediation agreements
- Represent clients in court or in settlement negotiations
- Ensure outcomes are legally enforceable and risk-proof
