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Justice Law Review
ISSN : -     EISSN : 31107214     DOI : -
Core Subject : Social,
Justice Law Review is an academic journals published twice a year (June and December) by the PT Justitia Legal Research . This journal emphasizes specifications in the Constitutional Law, Islamic Constitutional Law, Criminal Law, Islamic Law, Civil Law, International Law, Agrarian Law, State Administrative Law, Criminal Procedure Law, Commercial Law, Civil Procedure Law, Customary Law, and Environmental Law. This journal openly accepts the contributions of experts from related disciplines. All published articles do not necessarily represent the views of journals, or other institutions that have links to journal publications.
Articles 11 Documents
Business Dispute Resolution Outside the Court: An Analysis of Arbitration and Mediation in Indonesia Muhammad Gustiar; Muh Sutri Mansyah; La Ode Bunga Ali
Justice Law Review Vol. 1 No. 2 (2025): Justice Law Review
Publisher : PT Justitia Legal Research

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.64317/jlr.v1i2.24

Abstract

The increasing complexity of business activities in Indonesia has resulted in a growing number of commercial disputes that require effective and efficient resolution mechanisms. Litigation through state courts is often considered inadequate for business disputes due to lengthy procedures, high costs, rigid formalities, and potential damage to business relationships. This study examines the effectiveness of arbitration and mediation as alternative dispute resolution mechanisms in resolving business disputes in Indonesia. Using a normative juridical research method, this paper analyzes statutory regulations, particularly Law Number 30 of 1999 concerning Arbitration and Alternative Dispute Resolution, supported by legal doctrines and relevant scholarly works from Indonesian legal journals. The findings indicate that arbitration provides legal certainty through binding and enforceable decisions, making it suitable for complex commercial disputes, while mediation offers flexibility and relationship-oriented solutions that support the continuity of business cooperation. However, the study also identifies several challenges, including limited awareness among business actors, enforcement issues, and institutional constraints that hinder the optimal implementation of both mechanisms. This paper concludes that arbitration and mediation should be applied in a complementary manner rather than as competing mechanisms. Strengthening legal awareness, institutional capacity, and contractual design is essential to enhance the effectiveness of arbitration and mediation in supporting a stable and sustainable business dispute resolution system in Indonesia.

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