Dynamics of Arbitration Choice as an Alternative Dispute Resolution for Business Disputes
DOI:
https://doi.org/10.46799/jst.v5i12.1028Keywords:
arbitration, business dispute resolution, effectivenessAbstract
The arbitration mechanism as an alternative dispute resolution for business in Indonesia offers advantages such as speed, confidentiality, and specialization of the arbitrator. However, its effectiveness is hindered by various factors, including non-compliance with arbitration awards and the varying quality of arbitrators. This research employs a normative legal research method, analyzing applicable regulations and legal doctrines related to arbitration in Indonesia, particularly Law No. 30 of 1999 concerning Arbitration and Alternative Dispute Resolution. Findings indicate that while arbitration is preferred due to its efficiency, challenges such as low compliance with awards, concerns about arbitrator quality, and complexities in the selection process persist. Additionally, legal culture and issues like corruption significantly affect the choice of arbitration. To enhance the effectiveness of arbitration, regulatory reforms, improvements in the quality of arbitration institutions, and education for business actors are essential. Strengthening the relationship between arbitration and the judiciary is also crucial for fostering trust in this mechanism. In conclusion, improving arbitration as a dispute resolution method in Indonesia requires a comprehensive approach, including regulatory enhancements, better education, and quality assurance for arbitrators. By addressing these challenges, arbitration can become a more reliable choice for business actors, supporting sustainable economic growth in Indonesia.
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