The Law of Arbitration Rules that are Final and Binding

Heru Sugiyono,Heru Suyanto,Rosalia Agustanti

doi:10.15742/ilrev.v10n3.655

Heru Sugiyono, Heru Suyanto + Show 1 more

Open Access

https://doi.org/10.15742/ilrev.v10n3.655

Copy DOI

Abstract

A request in a district court for annulment of an arbitration, or arbitral, award is a form of legal remedy that claims dissatisfaction with the award by one or more parties. It contravenes the provisions that stipulate the finality of the award and its permanently binding legal force. The attempt to invalidate the arbitral award seems to reflect the party’s (or parties’) disobedience to it. The research method here employed normative juridical review of various library materials consisting of primary legal sources from related laws and regulations, secondary materials which formed the explanations used in the analysis of the primary legal materials in the form of doctrine, academic views, judicial decisions, document searches, books, and scientific works. The legal material is identified and analyzed to achieve the objectives of the study. The results indicate that there is legal uncertainty related to the provision, specifically whether a district court can overturn a final arbitration award and that it carries the legal force to bind the parties. Therefore, it is necessary to create that certainty, and write off Law No. 30 of 1999 concerning Arbitration and Alternative Dispute Resolution, article 70. Arbitrators are encouraged to act more professionally in examining and delivering fair arbitration awards without being tainted by false evidence or gimmicks.

Highlights

An agreement is a deal between parties that regulate rights and obligations to be conducted in good faith and full responsibility so that expected goals can be achieved
The results indicate that there is legal uncertainty related to the provision, whether a district court can overturn a final arbitration award and that it carries the legal force to bind the parties
There is uncertainty regarding whether the provisions of an arbitration award which is final and has legal force and is binding on the parties can still be canceled by the district court so that it will make the dispute settlement of the arbitration agreement drag on and will, have a greater impact on the losses for the parties, especially the justice seeker

Summary

Introduction

An agreement is a deal between parties that regulate rights and obligations to be conducted in good faith and full responsibility so that expected goals can be achieved. There are alternative dispute resolution (ADR) methods such as mediation, negotiation, and conciliation.. Bryan Garner, the editor of Black’s Law Dictionary, calls mediation “a method of nonbinding dispute resolution involving a neutral third party who tries to help the disputing parties reach a mutually agreeable solution.” Conciliation is a process by which a neutral person meets with parties to a dispute and explores how it might be resolved. In line with the previous statement, arbitration is an alternative means of dispute resolution on a non-litigation basis which is subject to a contract or agreement by the disputing parties, namely an arbitration agreement.18An arbitration agreement is an engagement and consensus of the parties to resolve disputes arising from the implementation of the agreement, through the use of an arbitration settlement mechanism to rule out a litigation settlement.. There is a popular statement about arbitration, namely that “arbitration is only as good as the arbitrator.”

Arbitrations can be lengthy and therefore expensive, especially foreign arbitrations

Legal Certainty Over an Arbitration Award that is Final, has Permanent Legal Force, and Binds the Parties

All costs associated with making registration deeds are borne by the parties.”

Conclusion