Application of the alternative dispute resolution model as dispute settlement between investors with the Indonesian government

Investment activities are so large in Indonesia. Both domestic and foreign investment can trigger disputes in implementation in the field, especially between pre-investors and the government. These disputes are caused by differences of opinion or interests of each party, both investors and the Indonesian government. Under Indonesian Law, if there is a dispute between investors and the government, it can be pursued in two ways, namely legal channels through courts and deliberation through arbitration. Present paper is a normative legal research studying the provisions of the law, in this case Law Number 25 of 2007 concerning Investment, especially Article 32. In the event of a dispute in the field of investment between the government and investors, the parties must first resolve this dispute through deliberation and consensus. The results of the study indicate that it is better to settle disputes between investors and the Indonesian government by means of deliberation through arbitration rather through legal channels in the court.