<![CDATA[Investment plays a strategic role in driving economic growth but is prone to disputes arising from contractual differences, breaches, or regulatory shifts. In Indonesia, conventional court litigation often proves lengthy, costly, and lacks confidentiality, prompting the need for effective alternative dispute resolution. This paper employs a normative legal research method, analyzing primary sources such as Law Number 30 of 1999 on Arbitration and Alternative Dispute Resolution, Law Number 25 of 2007 on Investment, and the 1958 New York Convention, alongside secondary literature. The study examines the position, urgency, legal framework, and enforcement of arbitration in investment disputes. Findings indicate that arbitration provides a legally recognized, final, and binding mechanism that ensures efficiency, neutrality, and confidentiality, thereby fostering investor confidence. Despite certain procedural and practical challenges, the integration of arbitration with judicial oversight maintains its effectiveness. The paper concludes that strengthening Indonesia’s arbitration system and harmonizing it with international norms is vital for promoting a stable and competitive investment climate.]]>
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