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Scirj Volume III, Issue XII, December 2015 Edition
ISSN: 2201-2796

DYNAMICS OF BUSINESS SEA TRADE DISPUTE SETTLEMENT BY MEDIATION IN THE PORT OF BELAWAN, NORTH SUMATERA, INDONESIA

Dr. Djafar Albram

Abstract: Conflicts in busisness sea trade have positive relationship with the increasing activities of the sea international trade. However, this kind of conflict was still unable to be solved accurately, precisely, safely and smoothly either by the Indonesia’s court system or other states’ court systems. For this reason, this research taking the cases in the Port of Belawan, North Sumatera, Indonesia has three objectives. The first is to examine forms and mechanisms to settle business sea trade dispute. The second is to determine factors that encourage business community settled the sea trade dispute outside the formal court. The third is to address judgment and barriers faced by business community in settling their business trade outside the formal court. The approach used to analyse the research questions was based on the normative legal approach using both primary and secondary data. The instruments for collecting primary data are through field observation, in-depth interview and questionnaires. The secondary data were from literature and other legal documents related with business sea trade. The study found as follows. First, mediation or negotiation has been the dominant way that was used by the business community in the port of Belawan to solve the business sea trade disputes. Second, the practical, economic and the legal cultural reasons have been the reasons why the business sea trade disputes were settled outside the formal court. Third, judgment to use mediation or negotiations by business community is because this method is open and based on kinship principle. However, there is obstacles encountered using this method including the lack of understanding of the parties, the knowledge and negotiation techniques itself, and the absence of a law. Thus, much remain to done by the government to formulate rules to support this mediation or negotiation method in formal legal way.

Reference this Paper: DYNAMICS OF BUSINESS SEA TRADE DISPUTE SETTLEMENT BY MEDIATION IN THE PORT OF BELAWAN, NORTH SUMATERA, INDONESIA by Dr. Djafar Albram published at: "Scientific Research Journal (Scirj), Volume III, Issue XII, December 2015 Edition, Page 7-14 ".

Search Terms: Business sea trade dispute, mediation or negotiation, dispute mechanism, the formal court system, the legal culture

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