DIGITAL DISPUTE RESOLUTION BASED ON LOCAL VALUES: THE RELEVANCE OF CUSTOMARY LAW IN THE FRAMEWORK OF ONLINE DISPUTE RESOLUTION (ODR) AND CIVIL LAW

Abstract

The development of digital globalization has changed the face of the Indonesian legal system, especially in the settlement of disputes arising from electronic transactions, e-commerce, and fintech services. Conventional litigation mechanisms are no longer considered efficient in responding to the dynamics of digital disputes that are cross-border and demand quick resolution and more inclusive access to justice. This condition encourages the importance of developing Online Dispute Resolution (ODR) as a technology-based alternative dispute resolution mechanism. The problem formulations in this research include: (1) how are the challenges of implementing ODR in Indonesia within the framework of national law with civil law tradition, and (2) how can customary law values be integrated to strengthen substantive justice in digital dispute resolution. This research uses a normative legal approach with conceptual and comparative methods, based on Lawrence M. Friedman's Legal System Theory and Satjipto Rahardjo's Progressive Law Theory. Through analysis of laws and regulations (Electronic Information and Transaction Law, Arbitration Law, Personal Data Protection Bill), customary law principles, as well as ODR practices in common law and civil law countries, the results show that the Indonesian legal system does not yet have an adequate regulative and institutional basis in regulating ODR. The digital legal culture of the community is also still weak, so that trust in online mechanisms is not optimal. The result of this research is the concept of Hybrid ODR System, which is a digital dispute resolution model that combines civil law legal certainty with customary law values such as consensus deliberation, propriety, and restorative fairness. The novelty of this research lies in the integrative approach that combines the dimensions of technology, positive law, and socio-cultural values to form a typical Indonesian digital justice system that is technologically efficient, normatively valid, and humanistically just in accordance with the spirit of Pancasila.