The Effectiveness of The Use of Arbitration as an Alternative to Dispute Resolution in Indonesia

Abstract

Background. Dispute resolution is a crucial element in the Indonesian legal system, with arbitration as an alternative that offers flexibility and efficiency. However, public interest in arbitration is still low, even though it is regulated in Law Number 30 of 1999.

Aims. This study aims to identify the factors that affect the low use of arbitration and propose solutions to improve public preferences.

Methods. The research method used is normative juridical, with data collection through literature studies that include legal documents, books, and academic articles.

Result. The results show that the limited public understanding of the benefits of arbitration, the perception of high costs, and doubts about the independence and transparency of arbitrators are the main factors that hinder public interest.

Conclusion. To build public trust, intensive socialization and education efforts, clearer cost management, and increased regulations related to arbitrators' independence are needed.

Implementation. Thus, arbitration is hoped to be a more competitive and desirable option for dispute resolution in Indonesia