Pusat Mediasi Nasional (PMN) as an independent Alternative Dispute Resolution (ADR) body dedicated to resolving commercial disputes was officially inaugurated on September 4, 2003 by the Coordinating Minister for Economic Affairs Dorodjatun Kuntjororo-Jakti and Chief Justice of the Supreme Court Bagir Manan. The establishment of a sustainable ADR facility in Indonesia is as a necessary complement to various policy initiatives aimed at revitalizing Indonesia ‘s economy, especially in terms of stimulating businesses that are major participants in the chain of jobs creation, foreign direct investment, industrial orders and production.
PMN founders include persons with Jakarta Initiative Task Force experience (JITF: a quasi government institution established in November 1998 under the auspices of the Financial Sector Policy Committee) who effectively used mediation in assisting disputants to restructure their corporate indebtedness of more than USD 20.5 billion, and other like-minded individuals such as prominent lawyers and a retired Supreme Court judge. Experience at JITF clearly demonstrated to the market that the use of internationally practiced ADR-mediation processes can be a viable out-of-court alternative in Indonesia , where the courts remain seen by the private sector as largely dysfunctional.
PMN is being implemented in a new legal, economic, and institutional environment. On September 11, 2003 , the Chief Justice issued Supreme Court Regulation No. 2 regarding Court Annexed Mediation which now requires all civil disputes to be first mediated prior to litigation. The Supreme Court intends that this regulation will help reducing the inflow of new cases while the court system at present is struggling with a serious case backlog. In supporting the Supreme Court Regulation, PMN has been appointed as one of its main mediation training providers for judges. Sponsored by the International Monetary Fund and the World Bank, PMN has provided three series of 40-hour mediation training for 72 judges from Central Java in Semarang (Capital City of Central Java Province) and Jakarta Larger Area (JABOTABEK).