The Development of National Arbitration Law in Indonesia: Challenges and Prospects in Handling Trade Disputes

Abstract

The development of complex modern trade demands the presence of an efficient and reliable dispute resolution system. In Indonesia, arbitration is one of the alternative dispute resolution mechanisms regulated in Law Number 30 of 1999. Although it has a final and binding character, its implementation is faced with various challenges such as lack of understanding of business actors, uncertainty of decision execution, and limited resources in arbitration institutions. In addition, the phenomenon of digitalization and cross-border trade also requires adaptation to technology-based dispute resolution mechanisms such as Online Dispute Resolution (ODR). This study aims to analyze the development of national arbitration law in Indonesia by examining the challenges faced and the prospects for reform that can be carried out. The method used is a literature study (library research) with a qualitative normative approach. Data were collected from various secondary sources such as laws and regulations, academic journals, and reports from related institutions. The results of the study indicate that arbitration law reform in Indonesia is urgently needed to answer the challenges of the digital era and globalization. Strengthening the capacity of arbitration institutions, harmonization with international standards such as UNCITRAL, and special regulations regarding ODR are important agendas for the future. This research contributes to providing a conceptual framework for policy makers and legal practitioners in improving the national arbitration system to make it more adaptive, efficient and reliable.