Implementation and Effectiveness of Online Dispute Resolution as an Alternative Mechanism for Resolving E-Commerce Consumer Disputes in Indonesia

Abstract

The rapid growth of e-commerce in Indonesia has facilitated commercial transactions while simultaneously increasing the potential for consumer disputes, including non-conforming goods, delivery delays, personal data breaches, and breaches of contract by business actors. Resolving such disputes through litigation is often considered ineffective due to the significant costs, lengthy procedures, and time required. This study aims to analyze the implementation of Online Dispute Resolution (ODR) as an alternative mechanism for resolving e-commerce consumer disputes in Indonesia and to examine its effectiveness in providing legal protection and legal certainty for the parties involved. This research employs a normative juridical method using statutory, conceptual, comparative, and case approaches. Data were collected through library research involving primary, secondary, and tertiary legal materials and analyzed using a descriptive qualitative method. The findings indicate that ODR offers several advantages, including faster, simpler, more efficient, and lower-cost dispute resolution compared to conventional mechanisms. However, the implementation of ODR in Indonesia has not yet been supported by specific regulations governing its procedures, legal enforceability, and the execution of settlement outcomes. Therefore, comprehensive regulations, standardized ODR mechanisms, and stronger integration with the national dispute resolution system are necessary to ensure effective legal protection, enhance public confidence in electronic commerce, and support the development of a secure, fair, and sustainable digital economy