Settlement of Business Disputes Through Arbitration Clauses at the Indonesian National Arbitration Board
DOI:
https://doi.org/10.38035/jlph.v5i5.1937Keywords:
Dispute Resolution, Arbitration, Indonesian National Arbitration BoardAbstract
A Arbitration is an out-of-court method of resolving business disputes. In Indonesia, BANI (Indonesian National Arbitration Board) oversees the arbitration process and provides standard clauses that must be contained in contracts if arbitration is chosen. This study belongs to normative law by utilizing secondary information from various legal references (main, supporting, additional) processed through systematization and harmonization. The arbitration clause functions as a contract safeguard, ensuring legal certainty by binding the parties to resolve disputes based on an agreement. The Arbitration Clause is an element of the agreement that gives the parties the opportunity to determine legal options and/or locations to resolve business issues and their legal consequences. By including an arbitration clause in the contract, business people are guaranteed a fair and legally protected dispute resolution through BANI. This strengthens contract enforcement and provides a clear framework for handling potential conflicts.
References
The Arbitration Clause acts as a guardian of the agreement, signaling the agreement between the parties concerned. It ensures that the implementation of the agreement is safeguarded and shaded by the rule of law. The Arbitration Clause is an element of the agreement that gives the parties the opportunity to determine legal options and/or locations to resolve business issues and their legal consequences. The Arbitration Clause implemented by BANI is a standard clause that must be included in an agreement if the parties choose to resolve disputes through BANI. The arbitration clause implemented by BANI plays an important role in ensuring that business disputes are resolved efficiently and professionally outside the court system. BANI as the leading arbitration institution in Indonesia provides a dispute resolution mechanism that adheres to established arbitration rules and procedures. BANI arbitration clauses are usually included in business agreements, where the parties agree that all conflicts arising from the agreement will be resolved through arbitration under BANI. This clause contains provisions regarding the appointment of arbitrators, the location of the arbitration, the language used, and the application of BANI rules in the dispute resolution process. By applying the BANI arbitration clause, the parties are bound to comply with the applicable rules and procedures, including adhering to the arbitrator's decision which is final and binding. BANI arbitration decisions can also be enforced through the courts if one party fails to fulfill its obligations.
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Copyright (c) 2025 Asep Sapsudin, Halimah Zahrah, Dora Rubiyanti
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