Abstract Basically an agreement is made freely and balanced by the parties. As a dispute resolution, arbitration can be drafted as a clause in an agreement. For instance, PT. ICEA and PT. SEP case which bound by an arbitration agreement. However, on the implementation, PT. ICEA decided to resolve the dispute by filling a suspension of obligation for payments of debt claim againts PT. SEP to the Surabaya Commercial Court. Based on the stated facts, the problems that will be analyzed are the character of the binding power of an arbitration clause and the legal consequences of PT. ICEA’s action which field a suspension of obligation for payment of debt againts PT. SEP which is still bound by the arbitration agreement. The method used in this r...