VIRTUAL ARBITRATION PROCEEDING: PROMISING EFFICIENCY, REAPING RISKS Herliana and Sujayadi
Faculty of Law
Universitas Gadjah Mada
Abstract
Electronic administrative process, virtual arbitrations proceedings and document review-based arbitrations have been shown to reduce costs and increase efficiency. However, these conveniences bring significant risks which may harm or degrade the nature and advantages of arbitration. The risks of a virtual trial include the level of security (cybersecurity), privacy, confidentiality, and trust. Singer mentioned two risks related to cybersecurity, namely data theft and cyberattacks. The choice of a virtual arbitration hearing cannot be based solely on effectiveness and efficiency, but must also look at the side of legal certainty, confidentiality of the process, and suitability for the type of case being faced. This study aims to find the ideal form of conducting arbitral proceedings online, by looking at BANI^s experience during the pandemic and comparing it with the practice of the world^s leading arbitration institutions, namely SIAC and AAA considering that the two arbitral institutions have succeeded in holding arbitration via video conferencing while maintaining confidentiality, security data and legal certainty regarding the validity of the procedure. To enrich the discussion, the Author will also examine the implementation of online arbitration as a benchmark for implementing virtual arbitration.
Keywords: virtual arbitration, confidentiality, efficiency Themes: Law on Business
Topic: Law on Business, Business Competition, and Prohibition of Monopoly
