Fahmi Shahab

fahmi shahab
Fahmi Shahab. Photo: Yanuarius Viodeogo

Become an International Standard Mediator and Arbitrator

Yanuarius Viodeogo

JAKARTA – One of the stages of commercial civil trials in court is mandatory mediation between the disputed. Here the role of mediator becomes important when needed to resolve business disputes.

The founder of The Indonesian Mediation Center, Fahmi Shahab shared his experience as a mediator, when large corporations were hooded by bad credit during the 1998 monetary crisis and now also gave birth to mediators and arbitrators scattered throughout the Land. Here's an excerpt from the interview:

What does the monetary crisis in 1998 have to do with the role of mediator?
The economic situation at the time of the monetary crisis was falling, many companies had debts using foreign currencies due to changes in the rupiah exchange rate. The government then established The Jakarta Initiative Task Force (JITF) as an ad hoc mediation agency to help restructure the company's debt.

We were helping the corporation to mediate from its bad debts to not being stuck, they could pay again. There is also debt with a period that has been extended. Twice the JITF was extended, we then handled nearly US$20.5 billion of corporate debt from 96 large groups of companies, some from small and medium enterprises (SMEs).

What happens after that?
We achieved a success rate until the end of JITF's tenure, in 2003 at 76%. At that time it could reach 76% is the average success of a mediation role because the average completion of mediation is 60%-80%. After success and not renewed anymore because of an ad hoc institution then unfortunately the experience of mediators in JITF just disappeared.

Therefore, the Establishment of the National Mediation Center or PMN (The Indonesian Mediation Center) in 2003 and inaugurated by the Supreme Court is purely private but has the support of the government. All sectors can be mediated in PMN. The Supreme Court has accredited with decree (SK) ri No. 136/KMA/SK/VIII/2016.

What does PMN do?
We provide mediator training to anyone, from lawyers, first-rate court judges. If he already has a certificate then he can register his name in the first-tier courts throughout Indonesia.

The total of PMN certified mediators now reaches 1,600 people, consisting of judges, lawyers, members of the Press Council, government employees, NGO workers (Non-Government Organizations), private companies, such as palm oil associations.

Yes, they are a lot of stakeholders involved. For example, problems between companies and community communities, disputes between companies with companies, companies with farmers, and companies with local governments.

We provide training to have the skills to be a mediator, our standards are very strict. In training, we train participants to prepare for meetings between disputed, negotiated. There are structured stages. In five days of training and on the sixth day of the exam. For those who pass obtain a certificate as a mediator from PMN. By that standard the user is not disappointed.

Experiences mediating with other countries?
Since 2007, we pmn are among those who established the Asian Mediation Association (AMA). It synergizes with other mediation institutions throughout Asia.

With this forum, we share experiences and capacities. Hopefully in the future, among AMA members it is believed to be the mediation institutions that prepare the best training. AMA members have 14 institutions from 11 countries consisting of Indonesia, Singapore, Malaysia, Philippines, Hongkong (5 founders), Thailand, India, Mongolia, Fiji, Japan, China and South Korea.

In 2018-2019, Indonesia hosted the AMA conference. The need, is to increase the capacity and network of mediators in the asian region. In Indonesia, there is no legislation on mediation.

However, with the regulation of ma it is a good development. To have a special law as an umbrella mediation law does require a process in that direction.

What are the targets going forward?
We hope that Indonesia can compete and be encouraged to increase the capacity that has the best human resources mediator among other countries. We have a positive view that there are other countries that are more advanced already have regulations or support for the role of mediators.

In addition, many dispute resolutions run to our neighbors so we should intropeksi ourselves. That standard has not been sufficiently accepted. Therefore, we want to answer the standards so that the global market is accepted, we can kok and we want more than that. (Indonesian Business)

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