The Role of Arbitration Institutions in Resolution of Investment Disputes

Arbitration clauses are one way to attract foreign investors and to instill confidence in entrepreneurs from developed countries as capital providers that they will receive legal treatment to ensure the security of their activities in Indonesia. The process of resolving disputes through arbitration is essentially the same as the process of resolving disputes through courts in general, however, the institutional structure of arbitration differs significantly from that of courts. Enforcement of arbitration awards is voluntary, and if the parties are unwilling to comply with the voluntary enforcement of the arbitration award, the arbitration award can be enforced. The content of the arbitration clause must address dispute resolution issues relevant to the subject matter of the agreement. Settling investment disputes through arbitration institutions, as an alternative to out-of-court dispute resolution, is essentially the same as the process of resolving disputes through courts in general, however, the institutional structure of arbitration and courts differs significantly.