UNDERSTANDING SMALL CLAIMS
Civil dispute resolution is often associated with a lengthy, complex, and costly process. However, certain cases involving specific types of disputes and limited claim values may be resolved more efficiently through a Small Claimmechanism.
What is a Small Claim?
A Small Claim commonly referred to as small claim court proceedings is a judicial process for resolving civil disputes using simplified and expedited procedures compared to regular civil lawsuits.
According to Article 1 point 1 of the Supreme Court Regulation No. 4 of 2019, amending Supreme Court Regulation No. 2 of 2015 on the Procedures for Settlement of Small Claims (“Perma 4/2019”), a Small Claim is defined as: “A civil claim with a monetary value not exceeding IDR 500,000,000 (five hundred million rupiah) resolved through simplified examination procedures in court.”
Criteria for a Small Claim Case
- The claim must relate to a breach of contract (non-performance) and/or a tort (unlawful act), with a total material claim not exceeding IDR 500,000,000.
- The following are excluded from the scope of small claims:
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- Disputes that must be resolved through specialized courts, as regulated by prevailing laws and regulations;
- Land ownership disputes.
- Both the plaintiff and defendant may consist of only one individual each, unless they share a common legal interest.
- The plaintiff must know the domicile or residence of the defendant.
- If the plaintiff resides in a different jurisdiction from the defendant, the plaintiff may appoint a legal representative, incidental proxy, or representative domiciled in the same jurisdiction as the defendant.
- Plaintiffs and defendants are required to appear in person at every hearing either individually or accompanied by a legal proxy, incidental proxy, or institutional representative—who must carry a letter of assignment from the plaintiff’s institution.
Stages of Small Claim Procedure
The procedure for resolving small claims is governed by Article 5 of Supreme Court Regulation No. 2 of 2015 as follows:
- A Small Claim is examined and decided by a single judge appointed by the Chief Judge of the District Court.
- The procedural stages include:
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- Registration of the claim;
- Examination of claim completeness;
- Appointment of the judge and substitute clerk;
- Preliminary examination;
- Scheduling of hearings and summons of parties;
- Hearing and possible settlement;
- Evidence examination; and
- Issuance of judgment.
3. The entire proceeding must be completed within a maximum of 25 (twenty-five) days from the first hearing.
Legal Remedies
Upon issuance of a final judgment in a small claim case, the parties may file an objection (keberatan) within 7 (seven) calendar days from the date of judgment pronouncement to the Chief Judge of the District Court. The Chief Judge shall appoint a panel of judges to examine the objection within 1 (one) day after the objection is deemed complete. The panel’s ruling shall constitute a final and binding judgment, and no further legal remedies such as appeal, cassation, or judicial review may be filed. The final judgment must be rendered and read within 7 (seven) days after the panel is established.
Conclusion
A Small Claim is a fast, simple, and affordable mechanism for resolving civil disputes, specifically for breach of contract or tort cases involving one plaintiff and one defendant. The procedure is straightforward, overseen by a single judge, and allows only one legal remedy, namely an objection, which must be submitted and resolved swiftly as the final step without further appeal.
Legal Basis
- Supreme Court Regulation No. 4 of 2019 concerning the Amendment to Supreme Court Regulation No. 2 of 2015 on the Procedures for Settlement of Small Claims;
- Supreme Court Regulation No. 2 of 2015 on the Procedures for Settlement of Small Claims.
Author: Evi Mutiara
Editor: Muhammad Arief Ramadhan