Small Claim Court

Resolve Your Uncollectible Debts and/or Compensation Claim Within 25 Days Through Small Claim Court

Concept of Civil Dispute Resolution Through Small Claim Court

Small Claim Court is a resolution of disputes between individual or corporate interests in a general court involving:

breach of contract - violation of agreed-upon obligations in a contract, or agreement, unpaid debts, or
unlawful acts - actions that violate the law & harm others.

Material claim values (direct losses) that can be sought include:

payment demands
compensation/costs/interest
contract fulfillment

The maximum material claim value that can be submitted is Rp 500 million, resolved through simple procedures & evidence, in order to:

accelerate the judicial process
avoid complications
reach a resolution within 25 days
reduce costs

This aspect distinguishes Small Claim Court from an ordinary Civil Lawsuit, which allows for unlimited claim amounts, but the legal process may take 1-2 years to complete.

Generally, Small Claim Court hearings do not involve witness examination or other evidence, unless the judge deems it necessary. Moreover, in simplified litigation, there are no legal remedies for appeals & cassation.

The judge's decision in resolving a small claim court is final & subject to appeal. The losing party can still file an objection within 7 days.

The aim is to expedite the resolution process in accordance with the principles of litigation:

simple procedure
swift timeline
low cost

A small claim court is part of a civil lawsuit that has distinct procedural laws but still falls within the civil realm.

Small claim court is a unique provision offered by the state, especially for retail entrepreneurs & SMEs with disputes not exceeding IDR 500 million. For instance, if a claimant has an outstanding debt of Rp 100 million, they do not need to spend 1-2 years resolving the case with significant expenses.

Conditions for Choosing a small claim court to Resolve Civil Disputes

Small Claim Value
As previously explained, the claim value must not exceed Rp 500 million related to breaches of contract (default) and/or unlawful acts.
Simplicity of the Case
Suitable for straightforward cases that do not involve complex legal issues or require in-depth analysis. Examples of simple cases include debt recovery, payment for services, or similar civil cases.
Same Domicile
Parties involved in a small claim court must have the same domicile. A small claim court is filed with the court that has jurisdiction over the defendant's domicile. However, if the claimant & defendant have different domiciles, the claimant must engage a lawyer in the defendant's domicile.
No Third Party Involvement
Can only be filed if the dispute involves only two parties & does not involve a third party.

Advantages of Resolving Civil Disputes Through Small Claim Court

1

Straightforward Procedure

Examined & ruled by a single judge within the scope of general jurisdiction without any opportunity for appeals or cassation to a higher level. In a Small Claim Court, no provisional claims, exceptions, reconvention, intervention, replication, duplication, or other similar actions can be filed.

2

Quick Resolution

Disputes can be resolved quickly, as the completion time at the District Court is 25 days from the first hearing. Hearings are held every 2-3 days, rather than through a lengthy trial process as in regular civil lawsuits.

3

Affordable Costs

Due to the shorter & simpler dispute resolution process, the costs incurred by both claimants & defendants are much more affordable & reasonable, proportionate to the claimed value, which can be up to IDR 500 million.

Timeline for Resolving Civil Disputes Through Small Claim Court

The maximum timeline for resolving disputes through a small claim court is approximately 50 days:

Initial Hearing - 25 days
Time to File Objections After Judgment - 7 days
Objection Hearing - 25 days

The Role of CHP Law Firm as an Small Claim Attorney

CHP Law Firm as a Small Claim Attorney, holds the responsibility to:

Deliver informed legal advice
Conduct detailed investigations
Formulate persuasive arguments
Gather relevant evidence
Represent clients in court proceedings.

CHP also participates actively in negotiations between the disputing parties, attempting to reach a harmonious settlement before progressing to the court trial stage.

Moreover, CHP executes administrative functions such as preparing legal claims, drafting legal responses & arranging other necessary documents for the case.

With this expertise & knowledge, CHP is dedicated to ensuring that clients secure their rights & attain a satisfactory resolution in Small Claim Litigation.