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Indonesia’s main legal framework is based on the civil law system, adopted from Dutch colonial law. This system is primarily founded on written laws and statutes, rather than case law or judicial precedent, which is more characteristic of common law systems. Indonesia also recognizes customary law and religious law.

The primary sources of law include the following:

  • Constitution of Indonesia. The highest law in the country, providing the fundamental legal principles.
  • Statutory laws (Undang-Undang). These are laws passed by the legislative body and are central to the legal framework.
  • Regulations and decrees. Various government bodies and ministries issue regulations and decrees that provide detailed rules and guidelines.
  • Dutch colonial law. Many commercial laws still reflect the influence of Dutch colonial law, especially the Civil Code (Burgerlijk Wetboek) and Commercial Code (Wetboek van Koophandel).

In connection with commercial litigation, the civil law system in Indonesia heavily impacts litigation proceedings. Unlike in countries with a common law system, judges in Indonesia are not bound by legal precedent. Thus, each case before the Indonesian courts is examined on a case-by-case basis by taking into account its particular facts and merits.

There are three stages of litigation proceedings that can be brought to Indonesian general courts, namely (1) the district court as the court of first instance; (2) the high court as the court of appeal; and (3) the Supreme Court as the cassation court.

Other than the general courts, the Indonesian legal system also recognises specialised courts for certain commercial disputes. These include (1) the commercial court as the court that handles bankruptcies, suspension of debt payment, and intellectual property disputes; and (2) the industrial relations court as the court that handles employment disputes.

Excerpted from Lexology Panoramic Complex Commercial Litigation 2025, published by Law Business Research.

Find the Indonesia chapter of Lexology Panoramic Complex Commercial Litigation 2025 here.

WRITTEN BY

SSEK
For further information, please contact:

Mahareksha S. Dillon – SSEK, SSEK
maharekshadillon@ssek.com

Mahareksha Singh Dillon has a broad practice that sees him handle a range of corporate matters. Mahareksha also is an active member of the firm’s dispute resolution team, mostly handling commercial disputes, bankruptcy, debt restructuring and complex litigation matters, including police investigations and immigration matters.

Mahareksha was part of the team that handled a high-profile case involving an international school in Jakarta, which encompassed civil litigation, criminal prosecution, and a dispute at the state administrative court. He led the SSEK team that helped an Italian public company that was the victim of cyber fraud recover funds seized by Indonesian law enforcement in the amount of EUR 3.6 million.

Prior to joining SSEK, Mahareksha worked at a boutique law firm in Jakarta, where he was involved in banking and general corporate transactions. He also was involved in a high-profile bank bailout in Indonesia, involving a corporate restructuring and asset recovery.

Mahareksha earned his Bachelor of Laws in 2009 from the University of Indonesia. In 2012, he received his Master of Laws (LL.M.) from Utrecht University in the Netherlands, majoring in law and economics.

During his bachelor studies, Mahareksha was actively involved in many student activities. He was on the Student Executive Body of the University of Indonesia Faculty of Law and was a member of many other organizations. He also helped organize numerous student events in both Jakarta and Utrecht.

Mahareksha is fluent in English and Indonesian. He is a member of the Indonesian Advocates Association (PERADI).

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