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All Journal International Journal of Public Health Science (IJPHS) Industrial and Systems Engineering Assessment Journal (INASEA) Jurnal Online Mahasiswa (JOM) Bidang Keguruan dan Ilmu Pendidikan Kontekstualita: Jurnal Penelitian Sosial Keagamaan Jurnal Kedokteran dan Kesehatan Proceedings of the 1st UR International Conference on Educational Sciences An1mage Jurnal Studi Kultural KACANEGARA Jurnal Pengabdian pada Masyarakat Journal of Dedicators Community JURNAL PENDIDIKAN TAMBUSAI J-SEA (Journal Socio Economic Agricultural) Jurnal Pendidikan Luar Sekolah Jurnal Ilmiah Wahana Pendidikan Journal of Information System and Technology (JOINT) Journal Peqguruang: Conference Series International Journal of Informatics, Information System and Computer Engineering (INJIISCOM) Jurnal Minfo Polgan (JMP) CITIZEN: Jurnal Ilmiah Mulitidisiplin Indonesia Sci-Tech Journal Islam Realitas: Journal of Islamic and Social Studies Innovative: Journal Of Social Science Research Jurnal Keuangan dan Bisnis Jurnal Penyakit Dalam Indonesia Journal of Law, Education and Business Journal of Education Religion Humanities and Multidiciplinary JURNAL VOKASI TEKNIK (JUVOTEK) Jurnal Ilmiah Smart Journal of Multidisciplinary Research Jurnal Ekonomi, Manajemen Pariwisata dan Perhotelan
Wilson Wilson
STAKN Palangkaraya, Kalimantan Tengah
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Journal : Journal of Multidisciplinary Research

 1 
Implementation Of The Final And Binding Principle In The Resolution Of International Business Disputes Through Arbitration Wilson, Wilson; Jaya, Dwi Putra; Royani, Ferawati
Journal of Multidisciplinary Research Vol. 2 No. 3 (2026): April
Publisher : Utami Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.70963/jmr.v2i3.660

Abstract

International arbitration is one of the most widely used mechanisms for resolving cross-border business disputes due to its neutral, efficient, and legally certain nature. One of the fundamental characteristics of arbitration is the final and binding principle, which provides that arbitral awards are final and binding upon the parties and are not subject to ordinary legal remedies such as appeal or cassation as commonly found in court litigation. This principle constitutes a cornerstone of the effectiveness of international arbitration, as it ensures the prompt, definitive, and enforceable resolution of disputes across jurisdictions. Nevertheless, in practice, the implementation of the final and binding principle in Indonesia continues to face significant challenges, particularly at the stage of recognition and enforcement of international arbitral awards by national courts. The broad interpretation of the public policy exception and the tendency of judicial intervention often undermine the final and binding nature of arbitral awards, as reflected in several court decisions, including the case of Karaha Bodas Company L.L.C. v. Pertamina. This situation has resulted in tensions between the judicial authority of the state and Indonesia’s international obligations under the 1958 New York Convention. This research aims to analyze the legal regulation of the final and binding principle in the settlement of international business disputes through arbitration under Indonesian positive law, as well as to examine its practical implementation. The research adopts a normative legal research method employing statutory, conceptual, and case approaches. The legal materials used consist of primary, secondary, and tertiary sources, which are analyzed qualitatively. The findings of this study indicate that, normatively, the final and binding principle has been explicitly regulated under Law Number 30 of 1999 concerning Arbitration and Alternative Dispute Resolution and is consistent with the provisions of the 1958 New York Convention. However, in practice, its application has not been entirely consistent due to differences in legal interpretation and the prevailing judicial legal culture. Therefore, a more restrictive interpretation of the public policy exception, enhanced judicial understanding of international arbitration, and a stronger commitment to international legal standards are required to ensure legal certainty and to support a favorable investment climate in Indonesia.
Co-Authors Abd. Rasyid Syamsuri Agustina Arundina Triharja Tejoyuwono, Agustina Arundina Triharja Alfonso Munte Alvi, Ria Rizkia Ananda, Juria Tri Andik Yulianto Andy Andy Aswandi Bahar Azzahrah, Putri Azizah Bate’e, Yamowa’a Battu, Desianto Payung Caesar, Abiyyu Candy, Candy Chandra Chandra Christina Eka Daeng Ayub David David Desti Irja Didik Aryanto edi edi Efendi, Dodi Elia, Elia Enda Puspitasari Ery Hermawati Estrada, Yuki Fachry Abda El Rahman Febrialismanto, Febrialismanto Felix Felix Firdaus Firdaus Fitri Yani Fitrilinda, Dafetta Gernaldi, Kevin Hastuti, Desi Herianti, Gita Melinia Ilmiawan, M. In’am Intan Sari Jasfar Jas Jaspar Jas, Jaspar Jaya, Dwi Putra Jhonatan, Apfia Natalie Johanes Terang Kita Perangin Angin Joni Joni Juliandi Sahputra Kesumawardhani, Rossa Diah Khairat, UL Khomali, Carlos Justin Latersia Br. Gurusinga Lepina, Lepina Limbong, Putri Lorenz, Chintya Manfaati, Dwi Kurnia Marsisvi, Neli MASLINDA MASLINDA, MASLINDA Maulana, Azhar Maulina, Melisa Meidyrianto, Rizky Kukuh Monika, Tri Cici Muhammad Jais, Muhammad Muharam, Fajri Mukmin , M. Nur Mukti, Abdul Mungkap Mangapul Siahaan Muslima, Fikri Nopembereni, Eti Dewi Novita, Fitriana Nunung Nurhasanah Nur Kamila, Elsya Nuratika, Nuratika Nurlita, Nurlita Nurlita, Nurlita Pieter Octaviandy, Pieter Poppy Amalia Pordamantra, Pordamantra Praditiani, Ririn Purwanti, Melvi Putri, Eka Ardiani Putri, Eka Ardiani Rachmadani, Annisa Suci Rahayu, Ica Rahmatasya, Whiwin Ramadhani, Dwi Cahya Ramadhani, Masyitha Ramadhani, Masytha Ratna Sari Rejeki, Sri Ayu Rismawati Wainarisi , Yane Octavia Royani, Ferawati Rozalina, Rozalina Sagala, Nia Sabrina Said Suhil Achmad Sari, Ayu Zarmita Sari, Febrina Sartika, Indah selly Selly Sembiring, Dinofta Amos Septriana, Wahyuni Sera, Rohima Simanjuntak, Fredian Sri Adiningsih Suci Nasution, Raudya Nurul Supriani, Mega Susanto, Deni Taai, Derwin Tamara, Rizky Tamin, Rosmawati Tering, Solideo Gloria Titi Maemunaty, Titi Tony Wibowo, Tony Uswatun Hasanah Utami, Fitri Nur Utami, Melisa Vikriani, Aulia Vitraningsih, Dhiny Wainarisi, Yane Octavia Rismawati Wenky, Wenky Wijaya, Robby Wiwik Handayani Yandi Suprapto Yani, Lora Yenti, Fitri Yulisman, Anindita Z, Khafifah Zulkarnain Zulkarnain