The development of globalization has brought Indonesian into free market and free competition, so that it is impossible to avoid disputes. Disputing parties generally resolve their disputes through courts. However, the parties can also choose alternative dispute resolution outside the courts, one of which is through arbitration. The only advantage of arbitration is its confidential nature as the decision is not published and the arbitration decision is final and binding on the parties. Businessmen avoid publicity over disputes between them, because they do not want company secrets to be known by their rivals and public at large. Nowadays, foreign businessmen argue that Indonesia seen as “unfriendly country” for arbitration. The reason is that arbitration decisions, which are final and binding, can be cancelled. This research uses a normative legal approach and used analytical descriptive specifications. The first conclusion, the reasons for annulling a national arbitration decision are written in Article 70 AAPS Law, the reasons for annulling an international arbitration decision are written in Article V paragraph (1) and (2) New York Convention, and the reasons for rejecting an international arbitration decision are written in Article 66 letter c AAPS Law. Second, the principle of confidentiality of disputes and final and binding arbitration decisions are only contained in the AAPS Law. The process of annulment of an arbitration decision by a judicial institution is subject to the Judicial Power Law which adheres to the principle of open trials for the public and the open opportunity to file legal remedies. Keywords: Arbitration, cancellation of decision, alternative dispute resolution
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