<![CDATA[This study examines the advantages of arbitration as an alternative dispute resolution mechanism for business disputes compared to conventional litigation. Using a normative juridical approach, it reviews Indonesia’s arbitration framework under Law Number 30 of 1999 and its alignment with international instruments such as the 1958 New York Convention, UNCITRAL, ICSID, and PCA. The analysis focuses on commercial and investment-related disputes. Findings indicate that arbitration offers key benefits—time and cost efficiency, confidentiality, procedural flexibility, and the appointment of expert arbitrators—making it the preferred method internationally. However, implementation in Indonesia remains hindered by inconsistent enforcement of arbitral awards, particularly due to broad public policy interpretations and the exequatur requirement. The study recommends judicial capacity-building, harmonization of legal interpretations, and institutional reforms to ensure Indonesia becomes a genuinely arbitration-friendly jurisdiction.ABSTRAKPenelitian ini menyoroti keunggulan arbitrase sebagai mekanisme penyelesaian sengketa bisnis alternatif dibandingkan proses litigasi konvensional. Dengan pendekatan yuridis normatif, studi ini mengkaji kerangka hukum arbitrase di Indonesia berdasarkan Undang-Undang Nomor 30 Tahun 1999 serta keterkaitannya dengan instrumen internasional seperti Konvensi New York 1958, UNCITRAL, ICSID, dan PCA. Fokus kajian meliputi sengketa perdagangan dan investasi. Hasil penelitian menunjukkan bahwa arbitrase menawarkan efisiensi waktu dan biaya, kerahasiaan, fleksibilitas prosedural, serta pemilihan arbiter ahli. Meskipun secara global menjadi metode dominan, pelaksanaan arbitrase di Indonesia masih terkendala, terutama dalam eksekusi putusan karena interpretasi luas terhadap ketertiban umum dan syarat exequatur dari pengadilan. Penelitian ini merekomendasikan peningkatan kapasitas yudisial, harmonisasi interpretasi hukum, dan reformasi kelembagaan guna menjadikan Indonesia sebagai yurisdiksi yang ramah arbitrase secara normatif dan praktik.]]>
