Regulatory Update: Presidential Regulation No. 99 of 2025 on the Ratification of the 1907 Convention for the Pacific Settlement of International Disputes

by Setyawati Fitrianggraeni and Tiara Amanda Putri

Overview
Presidential Regulation No. 99 of 2025 serves as the legal instrument ratifying the 1907 Convention for the Pacific Settlement of International Disputes   in Indonesia. This regulation strengthens Indonesia’s national legal framework for the settlement of international disputes by emphasizing the principle of pacific settlement, aimed at preventing the use of military force in international relations.  

The Convention provides standardized procedures for States to resolve disputes, whether of a legal or political nature, through diplomatic means, fact-finding mechanisms, and international arbitration. Regarding fact-finding, the Convention limits its legal effect, as commission reports merely establish facts and are not binding awards, leaving the final settlement to the parties.​(1)​ 

For Indonesia and other State Parties, the ratification of the Convention reaffirms access to the Permanent Court of Arbitration, as one of the dispute settlement mechanisms established under the Convention, as regulated under Presidential Regulation No. 99 of 2025 on the Ratification of the 1907 Convention for the Pacific Settlement of International Disputes. 

 

Key Highlights 

Obligation to Prioritize Peaceful Settlement and Good Faith
Through the ratification of the Convention, State Parties reaffirm their commitment to use their best efforts to ensure the peaceful settlement of international disputes.​(2)​ The use of international arbitration is based on the parties’ agreement to submit to and comply with the arbitral award in good faith.​(2)​ This aligns with broader international legal principles where good faith is required both to prevent disputes and to comply with settlement outcomes.​(3)​ 

Good Offices and Mediation Mechanisms

• Role of Third Parties: States not involved in a dispute have the right to offer good offices or mediation, even while a conflict is ongoing. Such offers shall not be regarded as unfriendly acts.​(2)​ 
• Non-Binding Nature: The role of the mediator is to reconcile opposing claims and ease tensions. In facilitating the process, the mediator manages the dialogue and structures the discussion to help the parties understand each other’s positions and explore constructive solutions.​(4)​ However, any advice or recommendations made by the mediator are not legally binding.​(2)​
• Special Mediation: In disputes that threaten peace, the States concerned are encouraged to appoint representatives to engage in exclusive communication with the mediator for a period of up to 30 days, with the aim of preventing the breakdown of peaceful relations.​(2)​ 
• International Commissions of Inquiry: These Commissions are established to address disputes arising from differences of opinion on matters of fact, excluding issues of honor or vital interests.​(2)​ Their mandate is limited to conducting impartial investigations and issuing a statement of facts, without rendering legal decisions.​(2)​ 

 

International Arbitration and the Permanent Court of Arbitration (PCA) 

• Legal Effect: Arbitration under the Convention provides a formal dispute settlement mechanism resulting in a final and binding award.​(2)​
• Institutional Framework: The Convention establishes the Permanent Court of Arbitration (PCA), seated in The Hague, with the International Bureau serving as its registry. The PCA is competent to administer arbitration proceedings under the Convention, unless the parties agree otherwise.​(2)​
• Procedure: The Parties are required to conclude a written agreement (compromis) defining the subject matter of the dispute and the appointment of arbitrators.​(2)​ The proceedings consist of two phases: written pleadings and oral hearings.​(2)​ 
• Implementation: Following the promulgation of Presidential Regulation No. 99 of 2025, Indonesia deposited its instrument of accession to the 1907 Convention for the Pacific Settlement of International Disputes with the Government of the Netherlands. As a result, Indonesia became a Contracting Party to the Permanent Court of Arbitration (PCA), effective 2 February 2026.​(5)​ 

 

References 

​​1. Irawan MAF, Sidqi MF, Nufus NZ. Penyelesaian Sengketa Internasional secara Damai. El-Mujtama: Jurnal Pengabdian Masyarakat. 2024 Sep 2;4(5):2354–61. Available from: https://journal-laaroiba.com/ojs/index.php/elmujtama/article/view/3413  

​2. Peraturan Presiden Nomor 99 Tahun 2025 tentang Pengesahan 1907 Convention for the Pacific Settlement of International Disputes (Konvensi tentang Penyelesaian Sengketa Internasional Secara Damai 1907). Indonesia; Oct 6, 2025 p. 1–3. Available from: https://jdih.kemlu.go.id/dokumen/109664  

​3. Cahya P, Yuliartini NPR. Penyelesaian Sengketa Secara Damai dalam Perspektif Hukum Internasional. Jurnal Komunikasi Hukum (JKH). 2022 Aug 1;8(2):688–97. Available from: https://ejournal.undiksha.ac.id/index.php/jkh/article/view/52016 

​4. Kłos P. Mediation in the Legal System of the United Nations. Studia Iuridica Lublinensia. 2020 Sep 30;29(4):101–16. Available from: https://journals.umcs.pl/sil/article/view/9711  

​5. Permanent Court of Arbitration. Press Release the Republic of Indonesia Deposits Its Instrument of Accession to the 1907 Hague Convention for the Pacific Settlement of International Disputes. The Hague; 2025 Dec. Available from: https://pca-cpa.org/en/news/pca-press-release-accession-to-pca-founding-conventions-indonesia/ ​ 

 

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