JURIDICAL OVERVIEW ALTERNATIVE DISPUTE RESOLUTION IN INDONESIA: LEGAL FRAMEWORK

Abstrak

The construction industry has used private dispute resolution techniques longer than most industries. Formal legal remedies are much slower and inflexible in the context of a fast-moving activity such as construction project. The methods of dispute resolution in Indonesia can be divided into two categories based on the method carried out within the court or litigation and carried out outside of the court which can divided into two subcategories, namely arbitration and alternative dispute resolutions (ADR). This research is a normative juridical study through a statute approach. The statutory approach is carried out by reviewing and analysing laws and regulations related to alternative dispute resolution. The aims of this research are to review the legal framework of ADR in Indonesia and to identify challenges and suggest areas for improvement. The result is ADR methods such as mediation, negotiation, and conciliation remain underutilized in Indonesia. Several factors contribute to this, including limited public awareness and insufficient socialization of these methods, as well as a deeply ingrained culture of litigation.