To understand the judicial system in Indonesia, first of all we have to look into the Indonesian Constitution as the fundamental norm. According to the article 24 paragraph 2 of the Indonesian Constitution, the judicial power is operated by two institutions which are: Constitutional Court and Supreme Court. The constitutional court is a court which has competencies [article 24C paragraph 1 and 2 of the Indonesian Constitution]: Adjudicating any judicial review of the legislation which is contradictory with the constitution, resolving dispute about competency among of the state institutions, deciding to dismiss a political party, resolving dispute about the result of an election, and adjudicating an impeachment against the president. Meanwhile the Supreme Court is the top of courts supervised by it which has capacities [article 24A paragraph 1 of the Indonesian Constitution]: adjudicating any judicial review of the regulation which is contradictory with any legislation, and as the final appeal court.
As the final appeal court, the Supreme Court of Indonesia supervises four different courts in Indonesia either in the first level or in the appeal level, which are: General Court, Administrative Court, Religion Court, Military Court, and some specialized courts. General Court is a court which has competency to adjudicate any common criminal case and common civil / private case [article 50 of the Indonesian Legislation number 2 of 1980]. Administrative Court is a court which has competency to adjudicate any administrative dispute between citizen and the government [article 47 of the Indonesian Legislation number 5 of 1986]. Military Court has competency to adjudicate any criminal case done by an army [article 9 of the Indonesian Legislation number 31 of 1997], meanwhile the Religion Court has competency to adjudicate several civil cases among Muslims which are marital, inheritance, wasiat, hibah, zakat, infaq, shodaqah, and economic business which is held based on Islamic principle [article 49 of the Indonesian Legislation number 3 of 2006].
Some specialized courts are courts which have very specific competency regulated by specific legislation. Some examples of this kind of court are: Special Court of Human Rights to adjudicate any gross human rights violation [based on the Indonesian Legislation number 26 of 2000], Special Court of Corruption to adjudicate any case of corruption [based on the Indonesian Legislation number 31 of 1999], Special Court of Commerce to adjudicate bankruptcy case [based on the Indonesian Legislation number 37 of 2004], case of copy rights violation [based on the Indonesian Legislation number 19 of 2002], and resolve dispute about patent [based on the Indonesian Legislation number 14 of 2001], dispute about trade mark [based on the Indonesian Legislation number 15 on 2001], dispute about trade secret [based on the Indonesian Legislation number 30 of 2000], and dispute about trade competition [based on the Indonesian Legislation number 5 of 1999], and Special Court of Children to adjudicate common criminal case committed by children [based on the Indonesian Legislation number 3 of 1997].
Alongside the judicial system explained above, the Indonesian legal system also recognize “Alternative Dispute Resolution (ADR)” as an alternative way in resolving dispute in civil and private law field especially in commercial matter outside the court. The ADR mechanism is perceived as an urgent thing because of its ability to provide “win-win solution,” and this mechanism ranges from negotiation, mediation, to arbitration. The ADR menchanism is regulated by the Indonesian Legislation number 30 of 1999. This legislation may reflect the insistence done by the government about the importance and urgency of this dispute resolution mechanism. Furthermore, according to the Supreme Court’s regulation number 2 of 2003, the General Court and the Special Court of Commerce is obliged to organize mediation among conflicting parties who submit their case in civil and commerce field into these courts.