Mediation-Arbitration: A Proposal for Private Resolution of Flats Disputes in Perspective of Indonesian Law

The rise of cases which is private between developers and consumers of flats always ends in the realm of litigation. A dispute resolution system in a court that does not guarantee confidentiality, a hostile disagreement between the litigants, a lengthy trial process that incurs enormous costs is the reason many parties choose to resolve through alternative dispute resolution. Among the various alternative dispute settlement mechanisms, mediation and arbitration have increasingly gained recognition and acceptance. Its hybrid, namely mediation-arbitration (med-arb), has also emerged and has received much attention and appreciation. Through normative legal research and using descriptive analytical research methods, it is found that the flats dispute can be done outside the court through alternative dispute resolution in this case through med-arb. A peace agreement made by the parties with the help of a mediator in the med-arb process will bind the parties to the arbitration process, which will result in a final and binding arbitral award. Weaknesses of mediation are perfected by final and binding arbitration in a single settlement process. Thus med-arb can be a means of dispute resolution that meets the principles of justice and legal certainty.