Business Mediation in the Era of Industrial Revolution 4.0: Urgency and Orientation of Online Dispute Resolution-Based Business Mediation

Online mediation has emerged as a prevalent practice among individuals seeking to resolve business disputes through non-litigation means. It is inherently more effective, efficient, and suitable for addressing business conflicts compared to traditional methods. However, current Indonesian legislation does not accommodate online mediation practices, as Article 6, paragraph (2) of the Arbitration and Alternative Dispute Resolution Law (UU APS) mandates that dispute resolution through alternative dispute resolution (ADR) must involve direct interaction between the parties, leading to legal ambiguities. This study aims to analyze the implications of these legal ambiguities regarding online mediation and to propose future regulations concerning online mediation based on online dispute resolution (ODR) within the context of the Industrial Revolution 4.0. This research adopts a normative legal approach with an emphasis on conceptual analysis and legislative review. The findings indicate that the legal uncertainty stemming from the ambiguous regulation of online mediation in the UU APS could result in legal instability for the public, particularly concerning the implementation of legal innovations like online mediation in business disputes. Future regulations should amend Article 6, paragraph (2) of the UU APS to explicitly state that alternative dispute resolution can be conducted online or virtually, as agreed upon by the parties involved.