Implementation of Arbitral Awards in the National Judicial System in Modern Commercial Disputes in Indonesia

Abstrak

This study examines the implementation of arbitral awards within Indonesia’s national judicial system in the context of modern commercial disputes. The increasing complexity of cross-border transactions has elevated arbitration as a preferred dispute resolution mechanism due to its efficiency, confidentiality, and finality. However, despite Indonesia’s legal framework under Law No. 30 of 1999 and its ratification of the 1958 New York Convention, the enforcement of arbitral awards remains dependent on judicial recognition, creating legal and procedural challenges. This research adopts a qualitative normative juridical approach, utilizing secondary data from legislation, legal doctrines, journal articles, and court decisions. The analysis focuses on identifying gaps between legal norms and their practical implementation. The findings reveal that enforcement is hindered by broad interpretations of public policy, judicial inconsistency, procedural complexities, and the possibility of annulment by national courts. These factors weaken the final and binding nature of arbitral awards and reduce legal certainty. Consequently, arbitration in Indonesia operates within a semi-autonomous framework where courts play a decisive role in enforcement outcomes.