Arbitration as an Alternative Settlement of Dispute.
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 choose the arbitrator. Usually, an arbitration institution will provide a list of experts that can be appointed as an arbitrator. The list consists of several experts in various fields of study.
Second, the process of arbitration is confidential. The confidentiality of the arbitration process is very useful to protect the parties, because it will be a disadvantage for a company if people know that it has been involved in a dispute.
Next, the arbitration procedure is very fast and the arbitration cost is not as expensive as court, because the parties do not have to go through difficult procedures. Unlike in court that allows the parties to go through some stages if they were not satisfied with the judge decision; arbitration does not have many stages. Therefore, the arbitration cost is a lot cheaper than the court cost. .
Also, an arbitral award is final, binding, and can be easily enforced.