Peluang Arbitrase dalam Penyelesaian Sengketa Investasi untuk Melindungi Investor Asing di Indonesia

Abstract

Although foreign investment is essential for Indonesia’s economic growth, foreign investment is often accompanied by the risk of conflict between foreign investors and the government. Arbitration has been a more successful method of conflict resolution than litigation to address this issue. The purpose of this study is to examine the potential benefits of arbitration in protecting the interests of foreign investors in Indonesia and to identify the challenges associated with its use. This study examines Indonesia’s arbitration law and the efficiency of its implementation using normative legal research techniques, regulatory approaches, and a literature review. The study’s findings suggest that the neutrality, adaptability, and confidentiality of arbitration make it a promising legal protection for international investors. However, a number of barriers remain significant issues, including inconsistencies between national laws and international norms, lack of public awareness, and inadequate infrastructure. Therefore, to enhance confidence among international investors and foster a better investment climate, strategic steps are needed such as regulatory harmonization, capacity building of arbitration institutions, and promotion of the benefits of arbitration.