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This article analyzes the impact of Alternative Dispute Resolution (ADR) on improving the investment environment in Indonesia. Indonesia seeks to enhance legal certainty and create a favorable climate for investors, both local and foreign, by incorporating Alternative Dispute Resolution (ADR) into its legal system. This will provide an efficient and non-judicial method for settling investment issues. This approach is further solidified by the state's adoption of the ICSID Convention via Law No. 5 of 1968, which provides a dependable arbitration mechanism for the resolution of disputes involving foreign investors and the state. The convergence of ADR principles and ICSID regulations not only corresponds to global benchmarks but also reflects the cultural ethos of "musyawarah mufakat" in Indonesia, which advocates for peaceful resolutions. Attracting investment, sustaining economic growth, and participating in regional and global trade frameworks are all dependent on these legal mechanisms being successful. There are far-reaching consequences for Indonesia's long-term economic development, and this research emphasizes the critical significance of legal frameworks in preserving investor trust.
Hendrawan et al. (2024) studied this question.