EFECTIVENESS OF MEDIATION AS A DISPUTE RESOLUTION METHOD IN IMPLEMENTATION OF ALTERNATIVE DISPUTE RESOLUTION IN INDONESIA

Abstrak

This research explores mediation as an effective tool for resolving business disputes in Indonesia, with particular attention to its procedural efficiency and its influence on the dynamics between conflicting parties. Using a qualitative research approach and descriptive normative analysis, the study examines the legal basis of mediation, grounded in regulations like Law No. 30 of 1999 and Supreme Court Regulation No. 1 of 2016, which require mediation before proceeding to litigation. The findings highlight that mediation offers notable advantages, such as quicker resolutions and reduced costs. However, its success depends on factors such as public awareness, the expertise of mediators, and the willingness of parties to engage constructively. The research underscores the significance of principles like confidentiality, impartiality, and alignment of interests in ensuring a fair and effective mediation process. While challenges remain, including a societal preference for litigation and questions about enforcing mediated agreements, the study concludes that mediation holds great potential to improve business relationships and optimize dispute resolution. Additionally, the insights gained contribute to a deeper understanding of mediation within Indonesia's legal framework and provide valuable guidance for other nations seeking to strengthen their alternative dispute resolution systems.