Formulation of a Risk-Based Online Dispute Resolution Model for E-Commerce in Indonesia: Legal Framework and its Application

Abstract

E-commerce growth in Indonesia has resulted in increased consumer disputes. This study aims to establish a regulatory framework for Online Dispute Resolution (ODR) in Indonesia using a normative legal research methodology. Secondary data from various sources, including ODR mechanisms from Shopee, Tokopedia, Bukalapak, and Indonesian regulations, were analyzed descriptively and comparatively. ODR offers benefits such as ease of use, cost-effectiveness, and avoidance of legal procedures but faces challenges like consumer awareness, standardization, and regulation. Ideal ODR models for Indonesia include E-Negotiation and E-Mediation, using AI mediators. Complex or high-risk disputes may require E-Mediation with professional mediators and Arbitration with neutral third parties. Implementing ODR models in e-commerce can benefit businesses and consumers by efficiently resolving disputes, but the appropriate model depends on the dispute's risk and complexity. Collaboration between authorities and stakeholders is crucial for ensuring ODR effectiveness in e-commerce dispute resolution and developing a suitable legal framework in Indonesia.