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All Journal Jurnal Cendikia ISNU SU
Rahman Al Fauzi Siregar
Universitas Islam Negeri Sumatera Utara
Humanities Law, Crime, Criminology & Criminal Justice

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Trends In Cross Border Arbitration: Legal Challenges And Implementation In Indonesia Annisa Putri Sinaga; Annisa Putri Andini Tanjung; Siti Salmiah Dalimunthe; Rahman Al Fauzi Siregar
Jurnal Cendikia ISNU SU Vol. 3 No. 1 (2026): ISNU Cendikia Januari
Publisher : ISNU Sumatera Utara

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.70826/jcisnu.v3i1.1309

Abstract

This paper examines the trends, legal challenges, and effectiveness of cross-border arbitration in Indonesia within the context of contemporary international trade and investment. The rapid growth of global commerce necessitates reliable dispute resolution mechanisms, positioning international arbitration as a preferred alternative due to its neutrality, procedural flexibility, and enforceability under instruments such as the 1958 New York Convention. Using a normative juridical approach, this study analyzes primary and secondary legal sources, including statutory regulations, scholarly literature, and arbitral decisions, through systematic stages of data collection, analysis, and synthesis. The findings reveal that while Indonesia possesses a solid legal framework for arbitration, practical challenges persist, including inconsistent judicial interpretations, limited institutional capacity, high procedural costs, and deficiencies in arbitration clause drafting. These factors affect the effectiveness and credibility of international arbitration. The study concludes with recommendations for harmonizing domestic law with international standards, enhancing institutional capacity, and promoting empirical research to strengthen Indonesia’s role as a competitive forum for cross-border dispute resolution.
Investor Protection Through Arbitration: The Urgency of Alternative Mechanism in Resolving Investment Disputes in Indonesia Ikhsan Sahriyan; M. Fazli Pratama; Rahman Al Fauzi Siregar; Siti Salmiah Dalimunthe; Usamah Zaki
Jurnal Cendikia ISNU SU Vol. 3 No. 1 (2026): ISNU Cendikia Januari
Publisher : ISNU Sumatera Utara

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.70826/jcisnu.v3i1.1312

Abstract

This study examines the strategic role of arbitration as a mechanism for resolving investment disputes in Indonesia. Investment plays a vital role in national economic development, yet it inherently carries the potential for conflicts between investors, business partners, and the government. Conventional litigation often proves lengthy, costly, and insufficiently confidential, prompting a demand for alternative dispute resolution. This research employs normative legal methods (doctrinal research), using statute and conceptual approaches to analyze relevant legislation, including Law No. 30 of 1999 on Arbitration and Alternative Dispute Resolution and Law No. 25 of 2007 on Investment, as well as arbitral awards and scholarly literature. The study systematically identifies legal issues, collects and classifies legal materials, and applies qualitative analysis through grammatical, systematic, and teleological interpretation. Findings indicate that arbitration provides legal certainty, procedural flexibility, neutrality, and enforceable outcomes, strengthened by Indonesia’s ratification of the 1958 New York Convention. Despite legal and practical challenges, arbitration effectively protects investor rights, supports a conducive investment climate, and enhances Indonesia’s economic competitiveness. Recommendations include strengthening institutions, human resources, and future research aligned with digital and cross-border investments.
Co-Authors Annisa Putri Andini Tanjung Annisa Putri Sinaga Ikhsan Sahriyan M. Fazli Pratama Siti Salmiah Dalimunthe Usamah Zaki