As Indonesia’s economy becomes more connected to global markets through international trade and investment, the legal challenges that follow have also grown more complex. However, Indonesia’s private international law framework has not fully kept pace with these developments. For decades, businesses and legal practitioners have grappled with a fragmented framework of private international law, navigating complex issues such as the applicable law in cross-border contracts, jurisdictional questions, service of process, and the recognition and enforcement of foreign judgments. This has resulted in the inconsistent application of legal rules in cross-border private relations, creating challenges for parties involved in cross-border transactions and disputes.
Against this backdrop, Indonesia has taken a significant step toward harmonizing its legal system and strengthening its coherence with international cross-border relations by issuing Presidential Regulation No. 98 of 2025, which ratifies the Statute of the Hague Conference on Private International Law (“HCCH”). This intention was underscored when Indonesia formally applied for HCCH membership on 4 December 2025, signaling its growing commitment and an emerging shift from a “rule-taker” to a “rule-maker” in the development of private international law.
Overview of HCCH
HCCH is the leading intergovernmental organization devoted to the unification of private international law. Established in 1893, it provides a global forum where more than 90 (ninety) member states, spanning civil law, common law, and other legal traditions, develop legal instruments that facilitate cross-border cooperation. Its work is structured around three principal pillars: international commercial and financial law, cross-border civil procedure and litigation, and international child protection and family law.
As of early 2026, Indonesia remains a non-member of HCCH, although it had already acceded to one of its key conventions, specifically the 1961 Hague Apostille Convention, in early 2021. While this enables Indonesia to benefit from certain conventions, its non-member status continues to restrict its full participation in the organization’s institutional and normative processes. Accordingly, this limited engagement makes the case for Indonesia’s full HCCH membership compelling.
The Growing Urgency of HCCH Membership for Indonesia
Indonesia currently lacks a comprehensive legal framework to govern private cross-border relations, as the existing colonial-era regulations provide only minimal and fragmented guidance. This regulatory gap has become increasingly untenable in the 21st century, particularly in the context of international contracts and cross-border disputes, where the absence of clear rules often results in legal deadlocks, most notably in matters of governing law of cross-border contracts, applicable law in dispute resolution, service of process, and the recognition, and enforcement of foreign judgments. HCCH membership, therefore, offers a pathway to establishing a more advanced legal infrastructure that complements the ongoing private international law bill and aligns Indonesia’s standards with global practices.
This urgency is also further reflected in the commercial sphere. As Indonesia integrates deeper into global trade, legal uncertainty creates real risks for international business. In this context, Indonesia cannot afford to develop its private international law framework in isolation, as its economic activities are already inherently cross-border and closely connected to international legal developments. A system that is not sufficiently engaged with global standards risks diminishing Indonesia’s legal relevance and reducing its effective “resonance” in international commercial relations.
Without a clear and reliable private international law framework, cross-border commerce becomes less predictable and more costly, making Indonesia less attractive for international business activities to take place. Strengthening this framework is therefore essential to fostering a stable investment climate and supporting Indonesia’s long-term international growth through enhanced legal certainty. Building on this, HCCH membership has emerged as an important step in ensuring that Indonesia’s legal system can keep pace with its economic goals.
The Strategic Advantages of HCCH Membership for Indonesia
Beyond the growing urgency, HCCH membership would place Indonesia within a more structured international framework for private international law, which is increasingly important as cross-border transactions continue to expand. As a member, Indonesia would be able to participate in HCCH’s governance and technical processes, thereby contributing to the shaping of future HCCH instruments, while also gaining priority access to technical assistance to support Indonesia’s efforts to accede to HCCH’s relevant conventions.
Such participation in HCCH would strengthen Indonesia’s position in its cross-border legal and economic relations. Alignment with HCCH framework would place Indonesia on a more equal footing with key partners that are already members, while supporting more effective legal cooperation in managing cross-border disputes. Over time, it would also create opportunities to enhance the international use of Indonesian law, including as a governing law in cross-border commercial arrangements and as a credible forum for resolving international disputes.
In this light, HCCH membership offers more than just a domestic legal upgrade, marking Indonesia’s advancement toward a more sophisticated international legal standing and its gradual shift in Indonesia’s role from a state that merely adapts to foreign standards to one that helps shape them. Ultimately, Indonesia’s membership in HCCH is not just a diplomatic milestone, but a strategic move to ensure Indonesia’s voice is heard in global legal governance.
Practical Benefits for Litigation and Commercial Disputes
The practical benefits of HCCH membership are most visible in cross-border dispute resolution. This is particularly relevant considering the increasing volume of cross-border economic activity, which inevitably generates more complex business-to-business relationships requiring effective dispute resolution mechanisms. Over time, and subject to accession to relevant HCCH conventions, Indonesia would be better positioned to adopt more harmonized procedures, helping to reduce the administrative and diplomatic bottlenecks that often delay cross-border litigation, while improving efficiency and predictability in cross-border disputes.
A further benefit concerns the cross-border effectiveness of judicial outcomes. In many commercial disputes, a favorable court decision has limited value if it cannot be recognized or enforced abroad. Without a treaty-based framework, Indonesian judgments may face substantial barriers when parties seek to rely on them abroad. Greater alignment with HCCH conventions on judgments would therefore improve the long-term prospects for enhancing the portability and practical utility of Indonesian court decisions in international settings. Combined with more efficient procedures for service and taking evidence, this would reduce delays and lower litigation costs. For businesses engaged in cross-border transactions, this translates into a more predictable and commercially viable dispute resolution environment.
