Arbitration as an alternative dispute settlement

Recently, arbitration is one of the alternative settlement of disputes that has been used by many people especially businessman, because they prefer arbitration better than court. Furthermore, the Government of Indonesia has promulgated Law No. 30 of 1999 Concerning Arbitration and General Alternative Settlement of Dispute. The new law, which concerns both arbitration and alternative dispute resolution, went into effect immediately upon its promulgation on 12 August 1999.

Arbitration is a private form of adjudication that uses one or several arbitrators to resolve the dispute. Based on the Black’s Law Dictionary, arbitration is a process of dispute resolution in which a neutral third party (arbitrator) renders a decision after a hearing at which both parties have an opportunity to be heard.

There are several reasons why most people prefer arbitration better than court. First of all, the arbitrator is definitely an expert of a case, because the parties themselves that will choo...