The 2026 ICC Rules: What Indonesian Businesses Need to Know

Issue 27, June 2026

The International Chamber of Commerce (“ICC”) has introduced new arbitration rules effective from 1 June 2026 (the “2026 ICC Rules”), replacing the previous rules that had been in force since 2021. The 2026 ICC Rules apply to arbitrations commenced on or after 1 June 2026.

The 2026 ICC Rules are intended to improve efficiency, increase procedural flexibility, and provide parties with additional options for resolving disputes. The revisions reflect the evolving needs of businesses engaged in cross-border transactions and seek to modernize arbitration procedures while preserving fairness and due process. 

For Indonesian businesses involved in international trade, ICC arbitration may offer an efficient and internationally recognized mechanism for resolving cross-border disputes. By providing a flexible procedural framework and a range of tools designed to streamline proceedings, the 2026 ICC Rules may help parties resolve disputes more effectively and with greater procedural certainty.

This article highlights several of the key changes introduced by the 2026 ICC Rules and their potential implications for Indonesian businesses.

I. Early Determination Mechanism:

The 2026 ICC Rules introduce a new mechanism that allows a party to apply for the early determination of claims or defences on the grounds that they are:

(a) manifestly without merit; or

(b) manifestly outside the arbitral tribunal’s jurisdiction (Article 30(1)).

The arbitral tribunal has discretion to determine whether such an application should proceed and, if so, may adopt appropriate procedural measures after consulting the parties.

This provision formally provides respondents, as well as claimants facing counterclaims, with an opportunity to dispose of unmeritorious claims or defenses at an early stage of the proceedings, potentially reducing time and costs.

II. Removal of Terms of Reference

Under the 2026 ICC Rules, the Terms of Reference (“ToR”) will no longer be a mandatory component in the arbitration proceedings.

Instead, within 30 days of receiving the case files from the ICC Secretariat, the arbitration tribunal must hold an initial Case Management Conference (“CMC”). The CMC will serve as the principal procedural milestone at the outset of the arbitration, allowing the tribunal and the parties to discuss procedural measures and establish a procedural timetable.

The procedural timetable must then be submitted to the ICC Secretariat shortly thereafter. Parties wishing to clarify issues at an early stage or amend or supplement the arbitration agreement will need to reach an agreement and address those matters through an early procedural order.

III. Changes to Expedited Proceedings

The monetary threshold for the ICC’s Expedited Procedure has been increased from US$3 million to US$4 million for arbitration agreements concluded on or after 1 June 2026. As a result, a broader range of disputes may now qualify for expedited arbitration, although parties remain free to opt in or out regardless of the threshold.

The 2026 ICC Rules also introduce a new Highly Expedited Arbitration Procedure (HEAP) under Appendix VI, which is available by agreement between the parties.

Where HEAP is adopted, a sole arbitrator must be nominated within 20 days, and the final award must be issued within three months of the first CMC. This procedure may be particularly suitable for time-sensitive or lower-value disputes where the parties require a rapid resolution.

Parties should nevertheless consider enforcement risks and any mandatory arbitration laws before opting for an award without reasons.

IV. Time Limit for Arbitral Award

Under the 2026 ICC Rules, the previous six-month deadline for rendering a final award following the Terms of Reference or the Court’s approval has been removed.

Instead, the award timeline for issuing the final award will be determined by the President based on the procedural timetable or a reasoned request submitted by the tribunal.

Although this approach provides greater flexibility, ICC arbitrations may still offer a more streamlined process than traditional court proceedings in many circumstances.

V. Emergency Arbitration

The 2026 ICC Rules further enhance the Emergency Arbitration (EA) framework by permitting emergency arbitrators to issue preliminary orders without prior notice when advance notice could undermine the relief sought, provided that all parties are subsequently given an opportunity to respond.

Emergency arbitrators may also modify such orders, and the scope of EA now extends to parties for whom an arbitration agreement “may exist”, as determined by the ICC President.

Compared to the 2021 Rules, these changes provide clearer authority for ex parte relief, broaden the range of parties that may seek emergency measures, and clarify procedural rights following the issuance of an order. As a result, EA may become a more effective tool for obtaining urgent interim relief, including asset preservation and the protection of contractual rights.

Conclusion

The 2026 ICC Rules are intended to create a more efficient, flexible, and streamlined arbitration framework for disputing parties and the arbitral tribunals. The revisions reflect the continuing emphasis on procedural efficiency, flexibility, and responsiveness in international arbitration.

For Indonesian businesses engaged in cross-border transactions, the 2026 ICC Rules offer a range of new procedural tools that may assist in resolving disputes more effectively. Businesses should consider the potential impact of these changes when drafting arbitration clauses and evaluating dispute resolution strategies for future transactions.

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If you have any questions, please contact

1. Rudy Andreas Sitorus, Partner - rudy.sitorus@makarim.com
2. Hendrik Alfian Pasaribu, Senior Associate - hendrik.pasaribu@makarim.com
3. Joshua Greenspan Banjarnahor, Associate - joshua.banjarnahor@makarim.com

_{M&T Advisory is a digital publication prepared by the Indonesian law firm, Makarim & Taira S. It informs generally on the topics covered and should not be treated as legal advice or relied upon when making investment or business decisions. Should you have any questions on any matter contained in M&T Advisory, or other comments in general, please contact us at the emails provided at the end of this article.}