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An Expert Determination Agreement helps parties resolve technical or specialized disputes by appointing an independent expert to make a binding decision. In Indonesia's business landscape, these agreements are particularly valuable for settling disagreements about valuations, construction specifications, or complex financial matters without going to court.

Under Indonesian contract law, this agreement sets out the expert's scope, timeline, and powers, while defining how parties will share information and costs. Companies often choose this route because it's faster and more cost-effective than litigation, especially when dealing with issues that require specific technical expertise. The expert's decision typically becomes final and binding unless there's proof of fraud or manifest error.

Use an Expert Determination Agreement when you need a quick, definitive resolution to technical disputes in Indonesian business operations. This agreement works especially well for complex issues like construction defects, IT system performance, or property valuations where regular courts might lack the necessary expertise.

The agreement proves most valuable in time-sensitive projects where lengthy court battles could derail progress. Indonesian companies often use it during joint ventures, mergers, or major infrastructure projects when technical disagreements arise. It's particularly effective when dealing with specialized industries like mining, technology, or engineering where expert knowledge can cut through complicated disputes.

• Basic Single-Expert Agreement: Sets up one expert to make binding decisions, commonly used in construction and property disputes
• Multi-Expert Panel Agreement: Establishes a panel of 2-3 experts for complex technical issues, often seen in large infrastructure projects
• Industry-Specific Agreement: Tailored for sectors like mining or technology, with specialized terminology and evaluation criteria
• Limited-Scope Agreement: Focuses on specific technical issues while excluding certain matters from expert determination
• Combined Mediation-Expert Agreement: Integrates expert determination with mediation processes, popular in Indonesian commercial disputes

• Disputing Parties: Companies, joint venture partners, or business entities who agree to resolve their technical disputes through expert determination
• Independent Expert: Technical specialist or industry professional appointed to make binding decisions on specific issues
• Legal Counsel: Indonesian lawyers who draft and review the agreement terms, ensuring compliance with local laws
• Industry Specialists: Technical consultants who help define the scope and criteria for expert determination
• Corporate Secretaries: Internal officers who manage the agreement's implementation and maintain documentation

• Dispute Details: Document the exact technical issues requiring expert determination and any relevant project specifications
• Expert Criteria: Define required qualifications, experience, and independence requirements for the expert
• Timeline Planning: Set realistic deadlines for expert selection, submissions, and final determination
• Cost Structure: Outline how expert fees and related expenses will be shared between parties
• Decision Scope: Clearly specify which matters the expert can decide and the binding nature of their determination
• Documentation Rules: Establish procedures for submitting evidence and technical information to the expert

• Parties' Information: Full legal names and addresses of all involved entities under Indonesian law
• Expert Selection: Detailed process for appointing the expert and their required qualifications
• Scope Definition: Clear description of technical issues subject to expert determination
• Decision Process: Steps for submission of evidence, timelines, and decision-making procedures
• Binding Effect: Statement on the final and binding nature of the expert's determination
• Cost Allocation: Clear terms for sharing expert fees and related expenses
• Governing Law: Explicit reference to Indonesian law and jurisdiction

Expert Determination Agreements differ significantly from Arbitration Agreements in Indonesian legal practice, though both offer alternatives to court litigation. The key distinctions lie in their scope, process, and binding nature.

• Technical Focus: Expert determination deals specifically with technical or specialized matters, while arbitration can handle broader legal disputes
• Decision Process: Experts make decisions based on their technical knowledge and industry expertise, whereas arbitrators follow formal legal procedures and hear arguments from both sides
• Time and Cost: Expert determination typically offers faster resolution and lower costs than arbitration, particularly for specific technical issues
• Legal Framework: Arbitration in Indonesia follows the Arbitration Law No. 30 of 1999, while expert determination operates under general contract principles
• Appeal Rights: Expert determinations are usually final with limited grounds for challenge, unlike arbitration awards which have broader appeal options