Recent arbitration award strengthens investor protection in indonesia

Jakarta, May 2026 — Leks&Co, a leading law firm in Indonesia renowned for its expertise in CCRE (Contract, Construction, Real Estate, and Environment) since 2009, is pleased to announce that we had successfully advised our Client, a long-term lessee, in an arbitration proceeding against an international hotel operator.

The dispute concerned the enforcement of a sublease rights which had been violated by the hotel operator. There are several contracts involved between the disputing parties.

In its claims, the Claimant argued that it was entitled to sublease and subcontract the apartment units to third parties pursuant to the contractual arrangements agreed upon by the parties. The Claimant further argued that the Respondent had obstructed the exercise of such rights, resulting in financial losses.

The Tribunal granted the claim and considers that based on Article 1338 of Indonesian Civil Code, the sublease clause in the lease agreement is valid, binding, and enforceable. The arbitral award underscores the importance of respecting contractual arrangements entered into by the parties, particularly in relation to the main contract and its supplementary contract.  

As one of Indonesia’s prominent law firms in the CCRE sector, Leks&Co continues to assist clients in navigating sophisticated commercial disputes and delivering strategic legal solutions tailored to their business objectives.

Potential clients will appreciate the team’s ability to handle complex matters efficiently, providing effective solutions in a timely manner. Compared to other firms, their focus on high-quality service sets them apart as a top choice for clients seeking reliable legal support.’’— as quoted in the client testimonials for the Dispute Resolution practice in The Legal 500 Asia Pacific 2026

Leks&Co in association with GRATA International is a leading law firm specializing in contract, construction, real estate, environment, and commercial dispute resolution, regularly acclaimed by leading international rankings such as Chambers, Legal500, IFLR1000, WWL, and asialaw.

If you have any queries, you may contact us by email at query@lekslawyer.com, visit our website www.lekslawyer.com and www.gratanet.com, our blog at blog.lekslawyer.com, and our real estate law blogs, i.e., www.hukumproperti.com and www.indonesiarealestatelaw.com.

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