Artificial Intelligence in the Indonesian Arbitration Regime: An Analysis of Legal Capacity and Regulatory Gaps

Abstract

This article examined the the capacity of Indonesia’s legal and institutional arbitration framework to accommodate the growing use of artificial intelligence and the regulatory gaps arising from the absence of arbitration specific governance. The study addressed the growing use of artificial intelligence in procedural management, evidentiary handling, and analytical support within arbitration, which has developed faster than corresponding legal regulation. Using a doctrinal approach, the article analysed arbitration law, electronic transactions regulations, data protection law, institutional arbitration rules, and relevant ethical guidance to assess their interaction and practical implications for artificial intelligence assisted arbitration. The analysis showed that Indonesia’s framework provided partial compatibility through party autonomy, procedural flexibility, and recognition of electronic documents and signatures, as well as institutional capacity for digital proceedings. However, the framework did not expressly regulate artificial intelligence in arbitration, resulting in legal uncertainty concerning the formal validity of arbitral acts, procedural fairness, evidentiary integrity, confidentiality, data protection compliance, and allocation of responsibility for artificial intelligence reliance. The article further formulated principled regulatory directions aimed at closing these gaps without overregulating, emphasising targeted clarification, procedural governance, and reaffirmation of human responsibility in adjudication. It concluded that gradual legal and institutional reform could support the responsible integration of artificial intelligence into arbitration while preserving enforceability, procedural legitimacy, and alignment with established arbitration principles.