The Role of Arbitration Institutions as a Non-Litigation Alternative in Fair Business Dispute Resolution

Abstract

Differences of opinion or disputes in the business context often occur, and Indonesia has an alternative dispute resolution institution, namely Arbitration. According to experts, Arbitration is one way of resolving disputes that involves the disputing parties to agree on choosing a judge, or judges who will make a decision, and the parties must also agree to respect the decision taken by the judge. Until now, the dominant dispute resolution, between the parties through the courts (litigation) even though alternative dispute resolution (non-litigation) has been regulated through laws and regulations. The implementation of the Arbitration Institution is based on the principle of non-litigious minded as the resolution of disputes, through deliberation and seeking peace between the parties so as to minimize hostility or resentment from the disputing parties. The problems of this research are first, How is the Implementation of Business Dispute Resolution through Arbitration in Indonesia, based on the Principle of Non-Litigious Minded. Second, How do the Parties Respect the Arbitration Decision on Business Dispute Resolution. This study uses a normative legal method which uses a literature study research data source that uses secondary data sources such as official documents, books, research reports, theses, dissertations, and laws and regulations related to the research object being studied. The legal materials collected, through literature review include: primary legal materials, secondary legal materials, and non-legal materials.