Supreme Court Urges Separate Law for IIFC Special Court

JAKARTA, DDTCNews - The Supreme Court (Mahkamah Agung/MA in Indonesian) is urging the House of Representatives (Dewan Perwakilan Rakyat/DPR in Indonesian) to prepare a separate draft law concerning the special court within the Indonesian International Financial Centre (IIFC).

The Head of the Supreme Court Supervisory Chamber, Syamsul Ma'arif, said that the establishment of a special court within the IIFC must be grounded in a separate draft law, distinct from the IIFC Draft Law, to align with the national legal system.

"The establishment of a court, in this case the IIFC court, must be founded on a separate law, not as part of the IIFC Law," said Syamsul at a joint meeting with House Commission XI, as quoted on Thursday (9/7/2026).

Previously, the establishment of the Corruption Crime (Tindak Pidana Korupsi/Tipikor in Indonesian) Court was declared unconstitutional by the Constitutional Court (Mahkamah Konstitusi/MK in Indonesian) because it was enacted under the Corruption Eradication Commission (Komisi Pemberantasan Korupsi/KPK in Indonesian) Law rather than a separate law.

Given that every court now has its own governing legislation, the special court within the IIFC must likewise be established on the basis of a separate law.

"Establishing a new court must be done through a separate law; it is not permitted to be merged into a law that regulates other matters. Currently, all courts have their own legislative basis. For that reason, the establishment of the IIFC court must be carried out using a separate law," said Syamsul.

Moreover, Syamsul has also requested the House to narrow the scope of disputes that may be heard and decided by the IIFC court. Under the current draft law, the IIFC court is deemed to have excessively broad jurisdiction.

In the IIFC Draft Law, the IIFC court is proposed to have jurisdiction to examine, hear and decide the following five categories of disputes:

• disputes related to business activities within the IIFC;
• disputes arising from contracts, whether partially or wholly implemented or to be implemented within the IIFC;
• disputes arising from the granting of tax facilities;
• disputes from any event occurring or transaction within the IIFC implemented partially or wholly within the IIFC;
• any legal question or issue concerning all activities related to the IIFC, jurisdiction, competence and authority of the IIFC court, including the interpretation of IIFC council regulations.

According to Syamsul, the breadth of disputes subject to the court's jurisdiction would, in fact strip, the IIFC court of its special character.

"Almost all disputes currently heard by the general courts, the tax court and even the Religious Court would fall within it. If there is no limitation, the effect will be window shopping; filing claims here and there. The concern is that one jurisdiction will conflict with another. One party loses in one, wins in another and enforcement becomes even more confused," said Syamsul.

To provide legal certainty, the jurisdiction of the IIFC court should be limited to commercial and investment disputes only.

On another note, the government and the DPR are currently deliberating the IIFC Draft Law as a follow-up to Law 4/2026. The said draft law is targeted for completion by the end of this month.

The IIFC will have its own court capable of adopting international principles and standards in examining and deciding cases.

The law applicable within the IIFC may also adopt principles of common law, equity, international commercial law, international financial centre practices and international standards. (rig)