<![CDATA[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.]]>
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