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All Journal JURNAL ILMIAH GEMA PERENCANA
Dody Safnul
Faculty of Law, Dharmawangsa University
Religion Humanities Civil Engineering, Building, Construction & Architecture Economics, Econometrics & Finance Education

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Arbitrase sebagai Alternatif Penyelesaian Sengketa Investasi di Kawasan Industri Sumatera Utara: Studi terhadap Pelaku Usaha dan Pemerintah Daerah Dody Safnul
JURNAL ILMIAH GEMA PERENCANA Vol 4 No 2 (2025): Jurnal Ilmiah Gema Perencana
Publisher : POKJANAS Bekerja Sama Biro Perencanaan dan Penganggaran, Sekretariat Jenderal Kementerian Agama RI

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61860/jigp.v4i2.335

Abstract

Increased investment in the North Sumatra industrial region brings both the potential for economic growth and the risk of disputes between business actors and the regional government. Dispute resolution through litigation is often considered inefficient due to the lengthy process, high costs, and limited technical understanding of the investment sector. This study aims to assess the effectiveness of arbitration as an alternative for resolving investment disputes in the region. Using a qualitative-descriptive approach, data was collected through in-depth interviews with business actors, regional government officials, and legal practitioners. The results indicate that although arbitration is recognized as a faster and more flexible mechanism, its utilization remains limited due to minimal publicity, the limited capacity of local arbitration institutions, and the lack of integration of arbitration clauses into regional investment contracts. This study recommends the development of regional policies that encourage the use of arbitration, increasing the capacity of regional legal resources, and strengthening cooperation between the government and business actors in drafting investment contracts that promote fair and efficient dispute resolution.
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