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Indra Sakti
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EFFICIENCY AND LEGAL CERTAINTY IN THE RESOLUTION OF INDUSTRIAL RELATIONS DISPUTES IN BATAM’S INDUSTRIAL AREA Maejaya, Banar; Sakti, Indra; Riyanto, Agus; Bhakti, Rizki Tri Anugrah
Multidiciplinary Output Research For Actual and International Issue (MORFAI) Vol. 6 No. 4 (2026): Multidiciplinary Output Research For Actual and International Issue
Publisher : RADJA PUBLIKA

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Abstract

Abstract (TNR11) This article examines the effectiveness of alternative dispute resolution mechanisms, particularly mediation and arbitration, in the settlement of industrial relations disputes in Batam’s industrial area, with emphasis on two principal parameters: efficiency and legal certainty. Batam occupies a distinctive place in Indonesia’s economic geography as a free trade zone, an industrial cluster, and a strategic investment hub. This position generates intensive labour relations and, inevitably, a significant volume of industrial disputes. At the same time, the Industrial Relations Court (Pengadilan Hubungan Industrial/PHI) serving the Riau Islands Province is located in Tanjungpinang rather than in Batam. For workers and employers in Batam, this institutional arrangement increases travel costs, procedural burdens, and the time required to obtain formal adjudication. Using a normative juridical method supported by statutory, conceptual, case, and document-based approaches, this study analyses legislation, court decisions, institutional reports, scholarly literature, and verifiable secondary empirical information relating to dispute settlement practice in Batam. The study finds that mediation has become the dominant and relatively effective mechanism because it reduces costs, shortens processing time, and filters a substantial number of disputes before they reach litigation. However, legal certainty remains less than optimal due to persistent weaknesses in the execution stage, the non-binding nature of mediators’ recommendations, the underutilization of arbitration, and the absence of a PHI in Batam. The article therefore argues for stronger mediation institutions, the establishment of a local PHI in Batam, enhanced labour-law literacy, and better harmonisation between central and local policy as essential steps toward a dispute resolution system that is faster, fairer, and more legally certain. Keywords: Alternative Dispute Resolution; Arbitration; Legal Certainty; Mediation; Industrial Relations Disputes
Co-Authors . Roslidar Agus Riyanto Agustinsa, Ringki Ahmad Fudholi Alif Yanuar Zukmadini Andik Purwanto Andria, Agus Anita Setya Rahayu anjelie, Anggi Annisa Apriani Widya Ningsih Arianto, Dian Ariefa Primair Yani Ariefa Primairyani, Ariefa Bambang Sugiarto Banowati, Lies BHAKTI KARYADI Budi Mulyati, Budi Chitraningrum, Nidya Dedy Hamdani Defianti, Aprina Difa, Irma Oktiara Dwi Afni Maileni, Dwi Afni Dwiyana, Nenny Efendi, Kurniawan Eka Bertuah Ekaputri, Rendi Zulni Eko Risdianto Eko Swistoro Eladira, Eladira Erwin, Iwan Muhammad Fadhila, Annisa Fadhilah, Annisa Alya Faisal, Rizki Farishi, Salman Hanis Destrini Harofah, Ayu Idhil Henny Johan Herdiana, Dina Heryanto, Medi Hesti Sabrina Hutabarat, Naftalia Artaria Hutasoit, Ispandir Ichsan Kurnia Saputra Iqbal Pinayungan Munthe Irwan Koto Irwan Koto, Irwan Islamy, Fajrul Jaulim Sirait Kelvin, Edwar Laras Mitra Parayogi Lestari, Tri Reski Lisantia, Risky Novi Maejaya, Banar Mahayani, Ni Kadek IDN Mariska, Dita Mika Dwi Permata Muchtar, Kahlil Muhammad fauzan Muhammad Ichsan Muhammad Nasar Munzir, T. Nirwana . Nirwana Nirwana Nirwana, Nirwana Novi Ade Suryani Novita Darma Anggraini Nur Hidayah Nurma Harana Mora Siregar Nursa'adah, Euis Nursaadah, Euis Nursania Dasopang Nyoman Rohadi Octavianti, Dwi Putri Parlindungan, Deni Pramesti, Adelia Widya Pranitasari, Diah Prawira, Andika Pristika Handayani Purnama Hidayah Harahap Putra Halomoan Hsb Putra, Rian Rusmana Putri, Desy Hanisa Putri, Okta Rahma Puyanti, Puyanti Raden Mohamad Herdian Bhakti Rahayu Gustika Rahmat Kurniawan Riska Novialni, Riska Rizki Tri Anugrah Bhakti Ronggo Waskito, Jefri Saputra, Huzair Sari, Kezia Eka Sawaluddin Siregar Seftia Azrianti, Seftia Setianingsih, Ratna Sumandiarsa, I Ketut Sutarno Sutarno Sutarno Sutarno, M Syaiful Rochman Syamhudi, Tedy Syamsir Syamsir Syarif Hidayat Syawaluddin Siregar Tri Novianti, Tri Uliyandari, Mellyta USWATUN HASANAH Vijay Amar Wage Klaudhi Sintya Wardana, Re Wardana, Rendy Wikrama Wardani, Dian Wiris Woro Wenda Dwi Meilesri Yesy Oktalia Yulisa, Putri Dwi Yuni Syahputri Yusniar Lubis