Small Claim Lawsuit in Indonesia

Small Claim Lawsuit is regulated under Supreme Court Regulation No. 2 of 2015 as amended on Supreme Court Regulation No. 4 of 2019 regarding Procedures for Small Claim Court Settlement, in which Small Claim Lawsuit has strict requirement for compensation amount of Rp. 500.000.000, 00 (five hundred million Rupiah) or less.

The Parties for Small Claim Lawsuit

The parties, either plaintiff or Defendant, on Small Claim Lawsuit must fulfilled requirements, as follows:

  1. Each of party must be 1 (one) Plaintiff and 1 (one) Defendant as personal or legal entity, unless have same interest then the parties may involve more than one.
  2. Both plaintiff and Defendant must be in the same area (jurisdiction);
  3. If the plaintiff is outside the jurisdiction, then the plaintiff may appoint an attorney in same jurisdiction with Defendant.
  4. The plaintiff and defendant must attend to the court directly even though they have an attorney on their side.

It is clear that the lawsuit must be filed in Defendant (jurisdiction) and plaintiff must be reside in same area with defendant or appoint attorney who have same area with defendant.

Type of Small Claim Lawsuit

Same with another general lawsuit, small claim lawsuit also has types as follows:

  1. Lawsuit regarding breach of contract;
  2. Lawsuit regarding tort or violation against the laws.

The different of Small Claim Lawsuit with another general lawsuit, the damage amount or compensation for lawsuit is no more than Rp. 500.000.000,00 (five hundred million Rupiah).

Exception for Small Claim Lawsuit

The case which cannot be proceed in Small Claim Court, as follows:

  1. The cases which have certain procedures as regulated in specific laws,
  2. Any case related to the land dispute.

Some certain cases that have specific procedures cannot process for small claim court, such as employment dispute, consumer protection laws, anti-trust laws, etc.

Registration for lawsuit

The plaintiff registers the case in the court, either written by Plaintiff or just only fill the blank form that provided by clerk court. The blank form will be contained as follows:

  1. Identity of both parties, Plaintiff and Defendant;
  2. Summary of the case
  3. Plaintiff’s claim.

Additionally, the Plaintiff also must attach and submit the evidences that already legalised during registration process.

The stage of lawsuit

After register the case, there are several stages in Small Claim Lawsuit, as follows;

  1. Verification of legal paper;
  2. Assignment the judge and clerk;
  3. Preliminary examination of lawsuit;
  4. The court hearing schedule and summon both parties;
  5. Court hearing and reconciliation;
  6. Examination of evidences;
  7. Verdict.

Time period for completing the lawsuit for all stages started from the first hearing until verdict is no longer than 25 (twenty) days.

Reconciliation process during court proceedings

During court proceedings in small claim lawsuit, the judge will encourage both parties (plaintiff and defendant) to reach settlement amicably. This process is different with mediation for settlement in another general lawsuit as regulated under Supreme Court Regulation regarding Mediation.

If both parties reach an amicable settlement, then the judge will grant decision that both parties have reached an agreement to settle the case. This decision is legally binding for both parties and cannot be process for any legal remedies.

Legal Remedies against the Verdict

Different with another lawsuit, small claim lawsuit has no any legal remedies such as appeal or cassation. However, if one of party (the losing party) is not agree with the verdict, then the losing party may submit an objection as final effort which addressed to the court’s chairman.

For filing an objection, the losing party must register the objection no longer than 7 (seven) working days from the date of verdict declaration. The losing party shall submit memorandum of objection and will be response by winning party against memorandum of objection.

Time period for objection process is 7 (seven) days started from assignment of the judge to examine the objection.  

author: wilopo husodo

Published by Husodo & Partners

contact@husodolawfirm.com