Online Arbitration as a New Way of Business Dispute Settlement in Indonesia

Abstract

The business world develops faster than law. Business always requires speed including speed in handling disputes between parties. Online arbitration is a breakthrough that must be taken to bridge the speed of business and the availability of legal institutions in resolving disputes. Regulations in Indonesia tend to respond slowly to this change. Therefore this research is important to know the importance of online arbitration and what legal breakthroughs can be taken so that regulations can be accommodated in Indonesia. The legality of online arbitration can be found from the online arbitration agreement that should meet 4 preconditions of a legitimate agreement based on Civil Code considering the provision of Article 4 clause (3) of Law Number 30 of 1999 on Arbitration and Alternative Dispute Resolution, it can be said that the organization of online arbitration is possible when there is an agreement first between the parties to organize online arbitration. Indeed, Indonesia already has a regulation that recognizes electronic evidence as appropriate as physical evidence, except that the acknowledgment of online arbitration itself has not yet met with understanding. Keywords-Online Arbitration, Alternative Dispute Settlement, Business, Indonesia