Effectiveness of Shari'ah Economic and Business Dispute Resolution through Arbitration and Alternative Dispute Resolution (ADR)

Abstract

In this paper, we will discuss a little about the effectiveness of sharia economic and business dispute resolution through Arbitration and alternative dispute resolution (ADR). So that it can be described how the dispute resolution mechanism in a civil relationship between one party and another, of course, sometimes does not work as expected. This problem will be examined using a research method with a qualitative approach, namely a research process and an understanding based on on a methodology that investigates a social phenomenon and human problems. Regarding the dispute resolution process in the economy and business of sharia Arbitration is a method of dispute resolution that can be chosen by parties who have problems or disputes. In the settlement of disputes in the court there is a tiered procedure, in the district court, high level, the Constitutional Court, PK etc., while in arbitration there are stages. Apart from that, if the decisions are different, an appeal is still possible in court if no agreement is reached, however in arbitration it is final and binding (final and binding). Advantages The arbitration procedure is carried out closed, not open to the public (confidential), not too formalistic as is the case in court. The parties may choose a person who is trusted to be the arbitrator. The aim of arbitration and alternative dispute resolution outside the court is the same as through court channels, namely to uphold justice. The only difference is that the court is a State Court, which is general in nature. Arbitration is a commercial business court or commercial court.