A Comparative Study of Electronic Commerce ODR: Legal Challenges and Reform Perspectives in China and Indonesia

Authors

DOI:

https://doi.org/10.15294/jllr.v7i1.32326

Keywords:

Electronic Commerce ODR, Platform Autonomous ODR, Legal Challenges and Reform Perspectives, China and Indonesia, ASEAN Cross-Border Mutual Recognition

Abstract

This article examines the differentiated development paths of Online Dispute Resolution (ODR) systems in China and Indonesia, two core digital economies in ASEAN. China has established a centralized ODR framework through its “E-commerce Law,” which strengthens the enforcement of awards via a judicial coordination model. However, the exclusion of ad hoc arbitration in the “Arbitration Law” limits the effectiveness of platform autonomous awards (internal platform rulings). In contrast, Indonesia relies on platform autonomy, with platforms such as Tokopedia handling disputes. However, enforcement issues for mediation agreements arise from the absence of central legislation, fragmentation of jurisdiction across islands, and the failure of the Arbitration Law to recognize temporary arbitration (ad hoc arbitration). Shared challenges faced by both countries include barriers to mutual recognition of cross-border rulings, lack of technical standards, and privacy protection conflicts due to data localization policies. This article provides several policy recommendations: China should amend the Arbitration Law to recognize the validity of temporary arbitration and establish a national ODR data center to streamline the judicial confirmation process. Indonesia needs to quickly set up a central judicial certification center to make sure that all of its outer islands follow the same rules. This can be done by changing the E-commerce Law and the Arbitration Law. At the regional level, ASEAN should learn from the EU’s ODR platform by creating a system that recognizes certain cross-border rulings and setting up a data exchange center that balances Indonesia’s data storage needs with Singapore’s rules for sharing data across borders. The results supplement to legal reform scholarship by offering practical solutions for integrating ODR systems and harmonizing cross-border dispute resolution across ASEAN, fostering a dynamic adaptation of technical justice to legal authority in the digital age.

Author Biographies

  • Zuo Xiangbin, Faculty of Law, Universiti Kebangsaan Malaysia, Bangi, Selangor, Malaysia and Guangzhou Kingpound Law Firm, Guangzhou, Guangdong, PR China

    Zuo Xiangbin was born in China in 1988. He received the master’s degree from South China University of Technology, China. Now, he studies in Faculty of Law, The National University of Malaysia, Malaysia. At the same time, he serves as a consultant to Guangzhou Kingpound Law Firm. The author has contributed to research in topics: ADR & Commercial Law and International Economic law.

  • Nur Khalidah Dahlan, Faculty of Law, Universiti Kebangsaan Malaysia, Bangi, Selangor, Malaysia

    Dr. Nur Khalidah Dahlan is an academic researcher from the National University of Malaysia. The author has contributed to research in topics: Economic Justice & Alternative dispute resolution.  

  • Haniff Ahamat, Faculty of Law, Universiti Kebangsaan Malaysia, Bangi, Selangor, Malaysia

    Assoc. Prof. Dr. Haniff Ahamat is an academic researcher from National University of Malaysia. The author has contributed to research in topics: Public International Law, International Economic Law, Law of WTO, Competition Law

References

Akhtar, N., Khan, A., Habib, R. I., & Saleem, H. A. R. “Online dispute resolution as a solution to E-Commerce disputes: A comparative study of Pakistan and UK.” Journal of Contemporary Issues in Business and Government 28, no. 03 (2022). https://doi.org/10.47750/cibg.2022.28.03.015.

Alshathri, S. A. “Online dispute resolution as a mechanism to enhance consumer trust in e-commerce: How can Saudi Arabian law be improved?” Newcastle University (2022). http://hdl.handle.net/10443/5762.

Bakhramova, M. “The role and significance of arbitration and ODR in e-commerce.” International Conference on Multidimensional Research and Innovative Technological Analyses (2022): 85–87. https://www.researchgate.net/publication/359503505_THE_ROLE_AND_SIGNIFICANCE_OF_ARBITRATION_AND_ODR_IN_E-COMMERCE.

Balcha, A. “Online dispute resolution for electronic commerce under Ethiopian legal framework: The need for reform.” Oromia Law Journal 11, no. 1 (2022). https://www.ajol.info/index.php/olj/article/view/230764.

Ballesteros, M. C. R., & Ávila, J. L. G. “Online dispute resolution platforms (ODR): A legal and technical perspective.” Law and Business 4, no. 1 (2024): 28–38. https://doi.org/10.2478/law-2024-0006.

Ballesteros, T. “International perspectives on online dispute resolution in the e-commerce landscape.” IJODR 8 (2021): 85. https://doi.org/10.5553/ijodr/235250022021008002002.

Dahlan, N. K., Azman, M. A. S. A., Rajamanickam, R., & Zahir, M. Z. M. “Online mediation: Issues, applications and challenges.” Asian Journal of Research in Education and Social Sciences 5, no. 3 (2023): 81–92. https://doi.org/10.1002/crq.3900160407.

Danesh, P., Yazdani, A. H., & Rahimi, L. “The future of online dispute resolution: Legal frameworks for managing digital disputes in e-commerce, intellectual property, and consumer protection.” Legal Studies in Digital Age 2, no. 2 (2023): 37–48. https://jlsda.com/index.php/lsda/article/view/15.

Esplugues, C. “ODR, herramientas en consumo y comercio electrónico/ODR, consumer tools and e-commerce.” Consumer Tools and E-Commerce 39, no. 39 (2024). https://doi.org/10.63865/temasp.v39n39a1.

Goyal, U., & Goyal, A. “The evolution and effectiveness of online dispute resolution (ODR) platforms: A comprehensive analysis of ADR in the digital age.” Indian Journal of Integrated Research in Law 3 (2023): 1. https://heinonline.org/HOL/LandingPage?handle=hein.journals/injloitd5&div=80&id=&page=.

Gao, W. “Let the collective intelligence shine through: Crowdsourced Online Dispute Resolution from a Chinese Perspective.” Peking University Law Journal 6, no. 2 (2018): 283–304. https://doi.org/10.1080/20517483.2018.1603645.

Hartati, Sawitri Yuli, Emelia Kontesa, and Agri Baskara. “Sharia Fintech In The Digital Age: Human Rights in Sharia Fintech Through Criminal Law Safeguards.” Indonesian Journal of Criminal Law Studies 8, no. 2 (2023). https://doi.org/10.15294/ijcls.v8i2.48678.

Haryanto, I., & Sakti, M. “Implementation of online dispute resolution (ODR) in Indonesia’s e-commerce disputes (Comparative study with USA).” JHK: Jurnal Hukum dan Keadilan 1, no. 3 (2024): 1–12. https://doi.org/10.61942/jhk.v1i3.121.

Ilapakurthy, M. “E-commerce in the epoch of the Covid-19 pandemic and establishing ODR as a technique to ensure consumer protection.” Indian Journal of Law & Legal Research 4, no. 1 (2022): 1. https://heinonline.org/HOL/LandingPage?handle=hein.journals/injlolw4&div=184&id=&page=.

Isaac, E. “Effectiveness of online dispute resolution platforms in managing e-commerce disputes.” European Journal of Conflict Management 4, no. 1 (2024): 1–11. https://ideas.repec.org/a/bfy/ojejcm/v4y2024i1p1-11id2080.html.

Kristanto, Kiki, Muhamad Adystia Sunggara, Mas Putra Zenno Januarsyah, Pita Permatasari, and Vicko Taniady. “Embezzlement in the Private Sector: Legal Challenges and Regulatory Gaps in Corporate Governance.” IJCLS (Indonesian Journal of Criminal Law Studies) 10, no. 2 (2025). https://doi.org/10.15294/ijcls.v10i2.24881.

Latifah, Lyna, Isti Hidayah, Fafurida, Budi Prasetiyo, and Barokah Isdaryanti. “Legal Recognition of Business Incubators: Ethics, Compliance, and Corruption Prevention in Strengthening MSMEs.” IJCLS (Indonesian Journal of Criminal Law Studies) 10, no. 2 (2025). https://doi.org/10.15294/ijcls.v10i2.31238.

Li, T., Li, D., & Zhao, X. “Towards more effective ODR for cross-border B2C e-commerce: Self-regulated or state-run?” Tsinghua China Law Review 16 (2023): 225. https://heinonline.org/HOL/LandingPage?handle=hein.journals/tsinghua16&div=19&id=&page=.

Lin, Y. “Self-regulatory ODR in China’s e-commerce market: An examination of Alibaba’s Taobao platform and crowdsourced ODR.” Amicus Curiae 6 (2024): 358. https://doi.org/10.14296/ac.v6i2.5755.

Magd, H., & Palanissamy, A. “E-commerce disputes and digital justice platforms—A developmental perspective.” Global Business & Management Research 13, no. 3 (2021). https://doi.org/10.1017/s0898588x07000211.

Nurpadila, M., & Marpaung, D. S. H. “Online dispute resolution (ODR) as an alternative to e-commerce dispute settlement in Indonesia.” LEGAL BRIEF 11, no. 1 (2021): 36–47. https://www.legal.isha.or.id/index.php/legal/article/view/73.

Nyaga, B. M. “Online dispute resolution: The future of e-commerce in Kenya.” Journal of Conflict Management and Sustainable Development 8, no. 3 (2023). https://doi.org/10.2139/ssrn.4329110.

Patel, A., Ranjan, R., Kumar, R. K., Ojha, N., & Patel, A. “Online dispute resolution mechanism as an effective tool for resolving cross-border consumer disputes in the era of e-commerce.” International Journal of Law and Management (2025). https://doi.org/10.1108/ijlma-07-2024-0245.

Pattinasarany, A., Waha, C. J., & Pinasang, D. R. “Perlindungan hukum dan prosedur penyelesaian sengketa konsumen yang dirugikan pada transaksi e-commerce.” Innovative: Journal of Social Science Research 3, no. 4 (2023): 728–737. http://j-innovative.org/index.php/Innovative/article/view/2891.

Rifai, A. “The settlement of electronic commerce transactions through online dispute resolution mediation (ODR) in Indonesia.” Active Yuris 2, no. 1 (2022): 1–10. https://doi.org/10.25273/ay.v2i1.10983.

Rizkiana, R. E. “The future of online dispute resolution: Building a framework for e-commerce dispute resolution in Indonesia.” The Lawpreneurship Journal 1, no. 2 (2021): 114–138. https://doi.org/10.21632/tlj.1.2.114-138.

Rohaini, R., Anjani, E., Rusmawati, D. E., & Wardhani, Y. K. “Reforming online dispute resolution (ODR) regulations in growing e-commerce for legal certainty and protection.” Cepalo 9, no. 1 (2025): 69–80. https://doi.org/10.25041/cepalo.v9no1.3335.

Sampani, C. “Online dispute resolution in e-commerce: Is consensus in regulation UNCITRAL’s utopian idea or a realistic ambition?” Information & Communications Technology Law 30, no. 3 (2021): 235–254. https://doi.org/10.1080/13600834.2021.1875539.

Solikhin, R. “Perkembangan dan urgensi penerapan online dispute resolution (ODR) dalam penyelesaian sengketa perdagangan elektronik di Indonesia.” Padjadjaran Law Review 11, no. 1 (2023): 65–79. https://doi.org/10.56895/plr.v11i1.1235.

Ur Rehman, I., Qasim, M., & Ahmad, R. W. “The future of online dispute resolution in cross-border e-commerce: Challenges and opportunities.” Law Research Journal 2, no. 4 (2024): 113–122. https://lawresearchreview.com/index.php/Journal/article/view/95.

Wahid, S. H. “Formulation of a risk-based online dispute resolution model for e-commerce in Indonesia: Legal framework and its application.” International Journal of Arts and Humanities Studies 3, no. 2 (2023): 9. https://doi.org/10.32996/ijahs.2023.3.2.2.

Widiantari, K. S. D. “Upaya penyelesaian sistem online dispute resolution (ODR) dalam kasus penipuan penjualan kosmetik melalui media e-commerce di Indonesia.” Politika Progresif: Jurnal Hukum, Politik dan Humaniora 2, no. 2 (2025): 78–89. https://doi.org/10.62383/progres.v2i2.1634.

Yanyan, C., & Althabhawi, N. M. “China’s online dispute resolution mechanism for cross-border e-commerce: Challenges and solutions.” Pakistan Journal of Life & Social Sciences 22, no. 2 (2024). https://doi.org/10.57239/pjlss-2024-22.2.00408.

Downloads

Published

26-01-2026

Article ID

32326

How to Cite

Xiangbin, Zuo, Nur Khalidah Dahlan, and Haniff Ahamat. 2026. “A Comparative Study of Electronic Commerce ODR: Legal Challenges and Reform Perspectives in China and Indonesia”. Journal of Law and Legal Reform 7 (1): 293-336. https://doi.org/10.15294/jllr.v7i1.32326.