IIFC to Have a Special Court Handling 5 Types of Cases

JAKARTA, DDTCNews - The Indonesian International Financial Centre (IIFC) Draft Law being deliberated by the government and the House of Representatives also contains a clause on the IIFC Court.

Through the IIFC Draft Law, the establishment of the IIFC would enable the government to establish a specialist court to handle various disputes within the zone.

"The IIFC Court shall independently manage case administration, registry, operations, administration, budget, staffing, technology systems, facilities, administration of the execution of decisions, enforcement and other non-judicial affairs," reads Article 22 paragraph (2) of the IIFC Draft Law, as cited on Monday (6/7/2026).

In detail, the IIFC Court shall have exclusive jurisdiction to examine, hear and adjudicate 5 types of cases, including cases arising from the granting of tax facilities.

First, disputes relating to business activities within the IIFC. Second, disputes arising from contracts, where all or part of the contract is performed or is to be performed within the IIFC.

Third, disputes arising from the granting of tax facilities. Fourth, disputes arising from any event occurring or transaction within the IIFC performed wholly or partly within the IIFC.

Fifth, any legal question or issue concerning all activities related to the IIFC, the jurisdiction, competence, and authority of the IIFC Court, including the interpretation of IIFC Council Regulations.

Moreover, the IIFC Draft Law states that the IIFC Court shall also have jurisdiction over matters of recognition and enforcement of decisions issued by arbitral institutions or international arbitral decisions in connection with disputes of the first, second and fourth types.

Under the IIFC Draft Law, against a decision by the head of the IIFC Court refusing to recognise and enforce an international arbitral decision that concerns national interests, a cassation may be filed with the Supreme Court (Mahkamah Agung/MA in Indonesian).

Furthermore, the IIFC Draft Law provides that the IIFC Court shall serve as a court of first instance and a court of last resort. This implies that a court decision shall be final, and there shall be no appeal process to a higher court.

"Against decisions, assessments and orders of the IIFC Court of last resort, no legal remedies of appeals, cassations, civil reviews or other legal remedies may be filed to any court, tribunal, institution or authority, except against an assessment refusing recognition and enforcement of an international arbitral decision...," reads Article 23 paragraph (8) of the IIFC Draft Law.

In technical terms, the IIFC Court shall consist of a head, judges, a secretary, a registrar and a bailiff. The head referred to shall be a Supreme Court justice appointed by the Chief Justice of the Supreme Court, and there shall also be judges appointed by the President, comprising Supreme Court justices and ad hoc judges. (rig)