Our Services · Commercial & Civil Litigation
Commercial Disputes and Litigation
When a dispute with a business partner can no longer be resolved internally, you need a strategy, not just a lawsuit. We act for you from the negotiating table to the courtroom and the arbitral tribunal.
Situations that most often bring clients to us
- A business partner has failed to perform under the contract, and negotiations have stalled.
- You have suffered loss from the conduct of a party with no contract with you.
- A dispute between shareholders, or with the board of directors, is starting to disrupt the company.
- You have been sued and need to prepare a defence.
- Your contract contains an arbitration clause, and you need to know the right next step.
Types of disputes we handle
| Type | Examples | Notes |
|---|---|---|
| Breach of contract (wanprestasi) | Goods not delivered, payment not made, or work left unfinished | A formal notice of default by demand letter is usually the first step (Articles 1238 and 1243 of the Indonesian Civil Code) |
| Tort (perbuatan melawan hukum) | Loss caused by the conduct of a party with no contractual relationship with you | Article 1365 of the Civil Code |
| Shareholder disputes | Resolutions of the GMS, the directors, or the board of commissioners that harm shareholders | A shareholder may sue the company (Article 61(1) of Law No. 40 of 2007 on Limited Liability Companies). Shareholders holding at least one tenth of the voting shares may sue directors on the company's behalf (Article 97(6)) |
| Disputes subject to arbitration | The contract refers disputes to BANI or another arbitral institution | The district courts have no jurisdiction (Article 3 of Law No. 30 of 1999 on Arbitration), and the award is final and binding (Article 60) |
How we handle disputes
Assess the case before filing. We weigh the strength of the evidence, the prospects, the cost, and one factor that is often overlooked: whether the other side can actually satisfy a judgment.
Pursue settlement outside the courtroom. Where negotiation is still possible, we lead it and record the outcome in an enforceable settlement agreement.
Represent you in court, as claimant or defendant. This includes mediation: every civil dispute filed with an Indonesian court must first go through mediation (Article 4(1) of Supreme Court Regulation (PERMA) No. 1 of 2016).
Represent you in arbitration, from preparing the request through to enforcement of the award.
Follow through to enforcement. A judgment is only worth something once it is carried out, so we consider attachment and enforcement steps from the start of the case.
Enforcing foreign arbitral awards
An arbitral award issued outside Indonesia is recognised and enforceable here only if the conditions in Article 66 of Law No. 30 of 1999 are met. These include that the award was made in a country bound with Indonesia by a treaty on recognition and enforcement, that it falls within the scope of commercial law under Indonesian law, and that it does not conflict with public order. The award also requires an exequatur from the Chief Judge of the Central Jakarta District Court, the court with jurisdiction over international awards (Article 65). We prepare the application and represent you through to execution.
Why Sagara
We have experience in civil and commercial disputes at every level of the courts and in arbitration. We also see cases through an insolvency lens. A judgment won against a debtor that can no longer pay often recovers nothing, and at that point PKPU or bankruptcy may be the better route.
Every dispute therefore runs in three layers: identification of the evidence and the parties' positions; assessment of the most rational forum and strategy; and management of the case through to completion.
Frequently asked questions
Is court-annexed mediation mandatory?
Yes. The parties and their counsel must follow the mediation procedure (Article 3(1) of PERMA No. 1 of 2016). Mediation lasts no more than 30 days and may be extended by a further 30 days by agreement of the parties (Article 24(2) and (3)).
My contract has an arbitration clause, but I would rather go to court. Can I?
In principle, no. A written arbitration agreement removes the parties' right to bring the dispute before the district court (Article 11(1) of Law No. 30 of 1999). That is why dispute-resolution clauses deserve attention before the contract is signed.
What is the difference between breach of contract and tort?
Breach of contract arises from obligations under a contract, while tort arises from conduct outside any contractual relationship. The distinction determines the legal basis of the claim and how it must be proved. In practice, mixing the two without a clear basis risks the claim being found unclear.
How long does a civil case take?
It depends on the complexity of the case and the appeals the parties pursue. For claims of no more than IDR 500 million, the small claims procedure can be a much shorter route.
A dispute assessed early leaves more ways to resolve it. We accept consultations by appointment.