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All Journal Jurnal Cendikia ISNU SU
M. Fazli Pratama
Universitas Islam Negeri Sumatera Utara
Humanities Law, Crime, Criminology & Criminal Justice

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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 Ikhsan Sahriyan Rahman Al Fauzi Siregar Siti Salmiah Dalimunthe Usamah Zaki