<![CDATA[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.]]>
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