Over the years, Indonesian parties have become an increasingly familiar presence in Singapore-seated arbitrations, particularly under the auspices of the Singapore International Arbitration Centre (SIAC). While not marked by any sudden spike, the data reveals a clear long-term upward trend followed by sustained, high levels of participation, with Indonesia consistently ranking among SIAC’s most active foreign users. This reflects a broader commercial reality: for cross-border disputes, Singapore has evolved into a preferred neutral forum for Indonesian businesses, offering procedural reliability, enforceability under the New York Convention, and geographic proximity within the region. This article seeks to answer some of the commonly asked questions from parties considering arbitration in Singapore.

What is Arbitration?

Arbitration is an alternative method of dispute resolution in which parties agree to submit their dispute to one or more independent arbitrators for a binding decision, instead of litigating the dispute before the courts. 

Arbitration differs from litigation in that, instead of having a dispute decided by a judge in an open court, the parties appoint their own decision-maker, known as an arbitrator (or a tribunal of arbitrators). Parties may select arbitrators with specific expertise or nationality, and the arbitrators’ fees are usually borne by the parties. Arbitration is also conducted privately and on a confidential basis, unlike court proceedings which are generally public. The number of arbitrators is usually agreed in advance by the parties, most commonly one or three. 

Arbitration also differs from mediation because, in mediation, the neutral third party only facilitates negotiations and does not have the power to decide the dispute or impose a binding outcome. Either party may withdraw from the mediation and pursue litigation or arbitration instead. In contrast, an arbitrator has the authority to determine the dispute and issue a decision that is legally binding on the parties, who are therefore committed to completing the arbitration process and cannot, short of agreeing a settlement, simply walk away.

What kind of dispute can and cannot be arbitrated? 

While many disputes can be resolved through arbitration, certain matters are generally considered non-arbitrable, such as statutory claims or issues involving public policy. 

The following are examples of disputes that are commonly regarded as arbitrable and non-arbitrable:

What are the Advantages and Disadvantages of arbitration 

The Arbitration Process in Singapore  

Arbitration in Singapore is primarily governed by the International Arbitration Act 1994 for international arbitrations and the Arbitration Act 2001 for domestic arbitrations. Singapore has adopted the UNCITRAL Model Law, and the Singapore International Arbitration Centre (“SIAC”) is the main arbitral institution in Singapore. The following provides a summary of the arbitration process in Singapore: 

1. Agreement to arbitrate: The parties consent to resolve disputes through arbitration, either via a contractual arbitration clause or a standalone arbitration agreement.
2. Commencement of arbitration: The claimant initiates proceedings by filing a notice of arbitration.
3. Appointment of arbitrator(s): Arbitrators are appointed typically based on their expertise and a parties’ feel for their independence, and impartiality.
4. Preliminary proceedings: The tribunal and parties establish procedural rules, timelines, and case management directions.
5. Exchange of pleadings and evidence: The parties submit written statements of claim and defence, together with supporting documents and evidence.
6. Hearing: Oral submissions are made, and witnesses may be examined and cross-examined.
7. Award and enforcement: The tribunal renders a final and binding arbitral award, which is generally enforceable in more than 170 jurisdictions under the New York Convention. Awards are final and may only be set aside in limited circumstances such as serious procedural irregularities.

Conduct of Arbitration via SIAC

In practice, many arbitrations in Singapore are conducted under the SIAC Rules of Arbitration, which parties commonly incorporate into their arbitration agreements. 

SIAC recently introduced the SIAC Rules 2025 (“2025 Rules”)[1], which came into effect on 1 January 2025. Among the various updates, two key procedural changes stand out for enhancing the efficiency, transparency, and flexibility of dispute resolution at SIAC:

1. the introduction of the Streamlined Procedure; and
2. the expansion of the Expedited Procedure.

Streamlined Procedure – Rule 13, Schedule 2 of the 2025 Rules[2]

The Streamlined Procedure is intended for lower-value disputes and applies where the amount in dispute is SGD 1 million or less, or where the parties have agreed to its use before the tribunal is constituted. 

Key features of the Streamlined Procedure include:

1. All disputes are heard by a single arbitrator. If the parties are unable to agree on the appointment within 3 days, the SIAC President will appoint the sole arbitrator (Schedule 2, paragraphs 1 to 3);
2. The arbitrator will convene a case management conference within 5 days of appointment and, after consulting the parties, has wide discretion to determine how the arbitration should be conducted (Schedule 2, paragraphs 8 to 9);
3. The dispute will be decided on the basis of written submissions and any accompanying documentary evidence without any requests for document production and factual or expert witness evidence. Hearings will only be held if the tribunal considers them necessary (Schedule 2, paragraphs 11 to 12); and
4. The award will be rendered with a summary of reasons within 3 months of its constitution (Schedule 2, paragraphs 13 and 15).

Expedited Procedure – Rule 14, Schedule 3 of the 2025 Rules[3]

The monetary threshold for expedited proceedings has been increased from SGD 6 million to SGD 10 million, and the procedure may also be applied where the SIAC President determines that the circumstances warrant it.

Key features of the Expedited Procedure include: 

1. the arbitration is conducted before a sole arbitrator, unless otherwise determined by the SIAC President (Schedule 3, paragraph 1);
2. the dispute may be decided on the basis of written submissions and documentary evidence only (Schedule 3, paragraph 3(a));
3. hearings are to be conducted virtually unless the parties agree otherwise or the tribunal directs otherwise (Schedule 3, paragraph 3(b));
4. the tribunal has broad discretion to adopt appropriate procedural mechanisms and may limit document production, written submissions, and witness evidence (Schedule 3, paragraphs 3(c) to (d)); and
5. the tribunal must render its award within six months of its constitution, subject to any extension granted by the Registrar, and must provide summary reasons unless the parties agree otherwise (Schedule 3, paragraphs 4 and 6).

Conclusion

In conclusion, arbitration in Singapore provides a flexible, efficient, and confidential alternative to court litigation, allowing parties to tailor the process to their needs and select arbitrators with the expertise necessary for their disputes. 

With a strong legal framework under the International Arbitration Act 1994 and the Arbitration Act 2001, coupled with the institutional support of the SIAC, Singapore has established itself as a leading seat for both domestic and international arbitration. 

Recent reforms under the 2025 Rules, including the Streamlined and Expedited Procedures, further enhance the efficiency, transparency, and accessibility of arbitration, making it particularly suitable for both high-value and lower-value disputes. Overall, arbitration in Singapore offers parties a reliable, enforceable, and sophisticated mechanism for resolving commercial and cross-border disputes.