International Conference on Interdisciplinary Studies 2015: “Online Arbitration”: A New Paradigm of Dispute Settlement in Indonesia

Syarief, Elza and Shahrullah, Rina Shahriyani International Conference on Interdisciplinary Studies 2015: “Online Arbitration”: A New Paradigm of Dispute Settlement in Indonesia. International Conference on Interdisciplinary Studies 2015: “Online Arbitration”: A New Paradigm of Dispute Settlement in Indonesia. (Submitted)

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Abstract

Arbitration has become one of the most popular methods of dispute resolution among business people in Indonesia because of its unique characteristics, such as being a less formal process, the proceedings are usually private, and the confidentiality of disputes is generally assured. More importantly, arbitration awards are enforceable in Indonesia under Law No. 30 of 1999 concerning Arbitration and Alternative Dispute Resolutions (Undang-Undang Republik Indonesia Nomor 30 Tahun 1999 tentang Arbitrase dan Alternatif Penyelesaian Sengketa). Since using the Internet offers great opportunities for business people to expand their businesses, they may also have opportunities to select online arbitration to settle their disputes. The use of online arbitration has already been introduced in Indonesia as one of the mechanisms for business people to settle business disputes. However, many business people are still reluctant to use online arbitration because Law No. 30 of 1999 does not specifically deal with online arbitration. This research paper argues that the existing Indonesian national laws do support the use of online arbitration. To conduct this research a normative legal research method was adopted, using secondary data collected through document and literature study (library research). The data was analysed based on its contents (content analysis), using descriptive - qualitative approaches. The research found that Indonesian arbitration law should be interpreted more widely to cover traditional and online arbitration. It was also found that there are no provisions under Indonesian arbitration law to prohibit online arbitration proceedings and hearings, as long as they are conducted based on the principles of equality, transparency and due process. Consequently, online arbitration awards, which are rendered under the online arbitration proceedings, may be recognised and enforced based on Indonesian arbitration law.

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