The Use of Arbitration Mechanisms to Resolve Business Disputes Outside the Formal Justice System

Key Points

Arbitration resolves business disputes more efficiently than judicial channels, reducing time and costs.
It offers a closed process with binding arbitral awards, governed by Law No. 30 of 1999 in Indonesia.
Using normative juridical research, the study identifies key benefits and challenges in arbitration's implementation.
Understanding and adherence to court-dependent decisions remain significant challenges in arbitration.

Abstract

This study evaluates the effectiveness of arbitration in resolving business disputes compared to formal judicial channels, and analyzes the legal force of arbitral awards. In the competitive business world, conflicts often occur, and resolution through the courts is considered less efficient because it is time-consuming, high cost, and open to the public. Arbitration as a form of Alternative Dispute Resolution (ADR) offers a fast, flexible, closed process, and a binding award. In Indonesia, this mechanism is regulated in Law No. 30 of 1999 and is implemented by institutions such as BANI and Basyarnas. A normative juridical research method was used. Challenges still exist, such as lack of understanding and execution of court-dependent decisions.

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The Use of Arbitration Mechanisms to Resolve Business Disputes Outside the Formal Justice System

Key Points

Abstract

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