Settlement of business disputes can be done through litigation which is through the courts or by non-litigation such as arbitration that is popular recently. According to Arbitration Law in Indonesia, if there is a dispute based from the business agreement which consist of arbitration clause then the State Court doesn’t have authority to examine and decide the case therefore the State Court must refuse and declare that they don’t have the authority to examine the case. In practice, one of the party that binded by the agreement that has arbitration clause file a bankrupt appeal to the Commercial Court which is under the State Court as in the case between PT Wirana Nusantara Energy and PT Tangkuban Perahu Geothermal Energy. There is still misunderstanding or confusion about the one who actually have the authority to examine the case. The purpose of this research is to analyze and find the right regulation to determine the right institution by using normative approach with descriptive analytical and qualitative data analysis method. The result of this research is there’s still misunderstanding about the authority of the Arbitration and Commercial Court because the defendant state that the arbitration clause make the Arbitration has the absolute competence in the proposed exception.