Fraud as a Statutory Ground for the Annulment of Arbitral Awards: Legal Framework and Evidentiary Standards

25th June 2026

OVERVIEW

Arbitration is widely preferred in commercial disputes because it offers a private, efficient, and final dispute resolution mechanism. The prevailing Indonesian law related to arbitration is governed under the Law No. 30 of 1999 on Arbitration and Alternative Dispute Resolution (“Arbitration Law”) and other relevant regulation already set that the arbitral award is final, which generally does not provide any legal remedies. Nevertheless, Indonesian law recognizes limited grounds upon which an arbitral award may be annulled, where the award is alleged to have been obtained through fraud during the arbitration proceedings.

In practice, however, the concept of fraud remains difficult to define and how it should be proven remains a challenging issue, as the Arbitration Law provides only limited guidance and much of the legal framework has been developed through judicial interpretation.

This article, provided by Andrew Atmadja (Senior Associate) and Adis Putra Digjaya (Associate) from IMCOLaw, outlines Fraud as a Statutory Ground for the Annulment of Arbitral Awards.