Reinterpreting the Arbitration Legislation for Online Awards in Indonesia

"Objective �The use of online arbitration is more convenient for disputing parties as their submissions can be archived by automated document management systems and be reviewed from any location, at any time. Yet, the process of online arbitration in Indonesia remains uncertain due to the fact that Indonesian arbitration legislation does not contain any provisions relating to online arbitration. It is also questioned whether online arbitration awards are domestic or international under that legislation. In order to answer the questions, this research examines and reinterprets Indonesian arbitration legislation to argue for the status of online arbitration and its awards in Indonesia. Methodology/Technique � This study adopts normative legal research by examining existing legislation and literatures relating to arbitration. Findings � The findings of this study show that the legislation does permit online arbitration because Indonesian IT legislation facilitates the use of electronic communication and devices for this type of arbitration. However, the status of awards rendered in the online arbitration process remains uncertain. This is because Indonesia has not adopted the UNCITRAL Model Law. Consequently, the legislation merely categorizes online arbitration awards based on whether they are rendered within Indonesian territory (domestic awards) or outside of Indonesia (international awards). Originality/value � The use of technology has penetrated business transactions and in some cases can give rise to legal disputes. Therefore, those who engage in online transactions should consider the type of dispute resolution mechanism they employ. In the context of online businesses, it may be beneficial for disputing parties to settle their disputes through online arbitration due to its ability to transcend national boundaries, and the potential enforceability of its awards. "