The resolution of disputes in infrastructure projects requires an effective mechanism to ensure smooth project implementation. The fraudulent bank guarantee case in the Pandaan-Malang Toll Road project revealed weaknesses in public procurement oversight, where PT Setdco submitted a falsified bank guarantee, potentially causing losses to the Ministry of Public Works (PU) amounting to IDR 26.09 billion. This study aims to evaluate the effectiveness of arbitration as a dispute resolution mechanism in this case. The research employs a descriptive-analytical method with a qualitative approach, utilizing primary data such as arbitration documents and contracts, and secondary data from legal literature and media reports. The findings indicate that arbitration conducted through BANI provided a fast, fair, and binding solution for the disputing parties. However, the effectiveness of arbitration relies on the supervision of award implementation and regulations supporting accountability. In conclusion, arbitration can be a reliable mechanism for resolving infrastructure disputes if supported by an adequate system.