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Litigation or arbitration are not still be the best options for dispute settlement. Settlement through court needs more time, cost, and has a bad influence towards the relationship between the parties for a long term condition. On the other hand, through an arbitration also requires a highly cost. In contrast with meditaion, it can be reducing the cost and time in dispute settlement, and also maintaining the relationship between all parties. A good faith of disputing parties is the importance of mediation. The aim of this study are identifying the criterias of a good faith in mediation and sanctions of violators. This is a normative legal research, use a secondary data and qualitative analysis to answer the question.