IGNOS Wins Key Jurisdictional Ruling in Construction Dispute Over Indonesia's Most Luxurious Hotel and Resort: South Jakarta District Court Grants Absolute Exception, Declares No Authority to Adjudicate Civil Claim
9 October 2024

Jakarta, 26 September 2024 – IGNOS has successfully defended the owner of Indonesia's most luxurious hotel and resort, and one of the largest hotel operators in the world, in a construction dispute at the South Jakarta District Court.
The civil claim was filed by a contractor, alleging that the hotel and resort owner engaged in unlawful acts during the construction process by abusing their position and instructing the plaintiff to perform additional work beyond the contractual agreement, thereby demanding compensation in the amount of approximately 1 trillion Rupiah. In its defense, IGNOS argued that the owner and contractor had previously agreed that all disputes related to the implementation of the construction agreement would be resolved through the Indonesian National Board of Arbitration (BANI). The issues raised by the plaintiff were closely tied to the execution of the construction agreement. Furthermore, IGNOS contended that no unlawful acts were committed by the defendants and that the plaintiff included parties not connected to the hotel and resort construction in its civil claim.
In its legal consideration, the panel of judges agreed with IGNOS's arguments, stating that the owner and contractor had entered into a construction agreement that included an arbitration clause mandating dispute resolution through BANI. The court found that the issues arising from the additional work were indeed part of the implementation of the construction agreement, and that the parties had conducted meetings related to the contractor's breach of contract. Consequently, the South Jakarta District Court granted the absolute exception argued by IGNOS and declared that it had no authority to adjudicate the case.
This victory marks a significant achievement for IGNOS, reaffirming its commitment to providing professional, high-quality, and integrity-driven legal services to its clients.