Online Arbitration as an Alternative to Business Dispute Resolution for Small Nominal Claims (A Comparative Study of the Indonesian National Arbitration Body (BANI) with the Singapore International Arbitration Center (SIAC))

Globalization has increased the number and complexity of business disputes, including small-value disputes often faced by business actors, especially in the MSME and e-commerce sectors. The Small Claim Court (SCC) mechanism in Indonesia offers fast and cheap dispute resolution but has not been able to address the need for confidentiality. On the other hand, arbitration has the advantage of confidentiality and legal certainty, but the cost and duration of settlement are still the main obstacles for small nominal claims. A comparative study between the Indonesian National Arbitration Board (BANI) and the Singapore International Arbitration Center (SIAC) shows that SIAC has adopted a more adaptive, efficient, and affordable Online Small Claim Arbitration (OSCA) mechanism. At the same time, BANI does not yet have specific regulations related to online arbitration for small claims. This research uses an empirical normative method to examine the effectiveness of OSCA as an alternative to small-value business dispute resolution in Indonesia. The results confirm the need for regulatory updates and the development of specialized online arbitration mechanisms for small claims to provide efficient, confidential, and affordable solutions for businesses in Indonesia