ARBITRATION DISPUTE RESOLUTION MECHANISM IN FOREIGN INVESTMENT BASED ON INTERNATIONAL TRADE LAW

Abstract

Settling foreign investment disputes in Indonesia, in the context of increasing economic 

globalization, requires mechanisms that comply with applicable regulations to avoid 

inequalities between regulations for the disputing parties. Using a normative juridical 

approach and contextual methods, this study aims to understand the forms of foreign 

investment dispute resolution, including deliberation, Alternative Dispute Resolution 

(APS), litigation, and arbitration. The results indicate that arbitration is the primary option 

for resolving foreign investment disputes in Indonesia, due to the existence of specialized 

arbitration institutions such as BANI, ICSID, and UNCITRAL, as well as the recognition 

and enforcement of international arbitral awards that can be executed in other countries. 

This study concludes that arbitration is an effective and efficient dispute resolution 

mechanism for resolving foreign investment disputes in Indonesia.