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International Arbitration and Its Implications for National Legal Sovereignty Imamuddin; Aulia Hafhazah; Wardatul Jannah
Jurnal Sahabat ISNU SU Vol. 3 No. 1 (2026): ISNU Sahabat Januari
Publisher : ISNU Sumatera Utara

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.70826/jsisnu.v3i1.1246

Abstract

International arbitration is a dispute resolution mechanism increasingly used in cross-border legal relations, particularly in the areas of international trade and foreign investment. While international arbitration provides legal certainty and protection for investors, it also has implications for national legal sovereignty, particularly when a country must comply with arbitral awards outside the national judicial system. This study aims to analyze the implications of international arbitration on national legal sovereignty by examining the legal framework of international arbitration and the response of the Indonesian legal system to international arbitral awards. The research method used is qualitative research with a normative juridical approach through a literature review of laws and regulations, international treaties, and related legal literature. The results indicate that international arbitration has the potential to limit state authority in establishing public policy, but still plays an important role in creating legal certainty and a conducive investment climate. Therefore, a strategy is needed to strengthen national legal sovereignty through regulatory reform, a consistent role for national courts, and increased institutional capacity so that the state can safeguard national interests without neglecting international legal commitments.