The Application of Online Arbitration as an Alternative for Business Dispute Resolution During the COVID-19 Pandemic

The COVID-19 pandemic has brought changes in all areas, including the resolution of business disputes. One way of resolving business disputes can be through arbitration. The use of technology is a necessity in the transition from conventional dispute resolution models to online dispute resolution models, such as arbitration. Therefore, it is necessary to conduct a study to determine the possibility of applying online arbitration in practice and regulation in Indonesia, by comparing its application in the United States and China. In this study, the researchers used a comparative law method. In addition, the data collected were secondary data. In this study, it is found that during the COVID-19 pandemic, it is possible to apply online arbitration as an alternative to business dispute resolution as stipulated in Article 4 Paragraph 3 of Indonesia’s Law No. 30/1999 that “In the event that it is agreed that dispute resolution is carried out through arbitration, it occurs in the form of an exchange of letters. Therefore, the sending of telex, telegram, facsimile, e-mail, or in other forms of communication means must be accompanied by a note of receipt by the concerned parties.” It is reinforced by Article 31 Paragraph 1 that “The parties to a firm and written agreement are free to determine the arbitration procedure used in the examination of the dispute as long as it does not conflict with the provisions of the law.” It includes conducting online arbitration. Online arbitration in the United States is organized by the American Arbitration Association (AAA). Since 2001, the organization has regulated that in carrying out online arbitration procedures, there is the main concept, namely that every online dispute will be made a site for the case. On the site, all files concerning cases and documents submitted by the parties will be stored. Meanwhile, in China, since 1 January 2015, the Online Arbitration Law has been enacted as a result of the development of e-commerce. Apart from that, China’s Online Arbitration Law states that disputes that can be resolved through online arbitration are disputes arising from economic transactions and other trade transactions based on the agreement of the parties.