Consumer Dispute Resolution Efforts

In the case of consumer disputes, there are several resolution efforts that can be taken, both through litigation (court) and non-litigation (out of court) processes. One way ofdispute resolution through non-litigation is commonly referred to asAlternative Dispute Resolution.

Understanding Alternative Dispute Resolution

Alternative Dispute Resolution(ADR) or alternative dispute resolution (ADR) is an effort to resolve disputes out of court (non-litigation). ADR is a form of dispute resolution based on consensus by the disputing parties, either without or with the assistance of neutral third parties.

Several forms of Alternative Dispute Resolution

  1. Consultation is the process of providing advice or opinions by a neutral third party to the disputing parties. Negotiation is the process of deliberation between the disputing parties to reach an agreement.
  2. Mediation is the process of dispute resolution with the assistance of a neutral third party (mediator) who helps the parties to reach an agreement.
  3. Conciliation is the process of dispute resolution with the assistance of a neutral third party (conciliator) who helps the parties to reach an agreement and improve relations between them.
  4. Arbitration is the process of dispute resolution with the assistance of a neutral third party (arbitrator) who decides the dispute based on law or justice.
In Indonesia, ADR is regulated inLaw Number 30 of 1999 concerning Arbitration and Alternative Dispute Resolution. This law regulates ADR institutions formed by the government or private sector, as well as procedures for resolving disputes through ADR. The Indonesian government has encouraged the use of ADR in dispute resolution, both civil and criminal disputes. This is done to increase the efficiency and effectiveness of dispute resolution, as well as to maintain good relations between the disputing parties. The provisions of the Consumer Protection Law stipulate a maximum time limit of 100 days for dispute resolution through ADR. If ADR is unsuccessful, dispute resolution can be continued through litigation in court.