THE URGENCY OF INTERNATIONAL INVESTMENT AGREEMENTS (IIA) AND INVESTOR-STATE DISPUTE SETTLEMENT (ISDS) FOR INDONESIA

S Sefriani

Abstract


In recent years, there has been an increasing number of claims through investor state dispute settle-ment (ISDS) proposed by foreign investors to the host states. This has prompted some states review their international investment agreements (IIA) and their ISDS clauses. Indonesia has terminated many of its Bilateral Investment Treaties (BIT) as well. The research questions are 1) How is the urg-ency of IIA and ISDS for Indonesia; and 2) What kind of IIA and ISDS format that Indonesia should make to balance the state’s and foreign investor’s interest. The analysis results conclude that the existence of IIA and ISDS remains urgent for Indonesia, but it takes changes in terms of format like the new models made by many other host states. They involve redefinition of multi-interpretative terms and the exhaustion of local remedies. In addition, the non-automatic and mutual agreement ISDS arbitration which excludes the MFN clause should also provide the state's flexibility to protect the people’s prosperity through non-discriminating regulations.Keywords: IIA; ISDS; foreign investment

Full Text:


PDF View

References


Badan Koordinasi Penanaman Modal. “Perkembangan Perjanjian Peningkatan dan Per-lindungan Penanaman Modal (P4M) dan Prioritas Penyelesaian P4M antara Indonesia–Negara Mitra”. Paper. Materi Presentasi Invest in Remarkable Indonesia. Ja-karta. July 19, 2016;

Cook, Jeffrey T. “The Evolution of Investment State Dispute Resolution in NAFTA and SAFTA: Wild West to World Order”. Peperdine Law Review. Vol. 34 No. 1085. 2007. Pp.1085-1106;

Franck, Susan D. “The Legitimacy Crisis in In-vestment Treaty Arbitration: Privatizing Public International Law Through Inconsistent Decisions”, Fordham Law. Review. Vol. 73 No. 1521, 2005, Pp.1521-1625;

Fry, James D. Odysseas G Repousis. “Towards A New World For Investor State Arbitration Through Transparancy”. New York University Journal of International Law and Politicsl. Vol. 48. Spring 2016. p. 795-865;

Hertanti, Rahmi and Rika Febriani, 2014, Bilateral Investment treaty (BITs) Negara VS Korporasi, Seri Buku Panduan Memahami BITs: Perjanjian Perlindungan Investasi Internasional dan Gugatan Investor Melawan Indonesia”. Available on website: http://igj.or.id/wp-,content/uploads/2015/08/ MODUL-BITs_Indonesia.pdf accessed on Dec-ember 20, 2017 in Indonesia for Global Justice;

Hidayati, Eka Husnul Et.Al. “Akibat Penghentian Bilateral Investment Treaty (BIT) Indonesia-Belanda yang dilakukan secara sepihak oleh Indonesia”, USU Law Journal, Vol. 5 No. 2. April 2017. Pp. 134-157;

Juwono, Hikmahanto. “Indonesia Should Withdraw from the ICSID”. The Jakarta Post. April 2, 2014;

Kawharu, Amokura and Luke Nottage. 2017. “Models for Investment Treaties in the Asia Pacific region: An Underview. Arizona. Journal. International and Comparative Law. Vol. 34. 2017. Pp. 461-525;

Mann, Howard, “Reconceptualizing International Investment Law: Its Role In Sustainable Development”, Lewis & Clark Law Review, Vol.17-2, Summer 2016, Pp. 14-39;

Nolan, Michael. “Challenge to the Credibility of the Investor state arbitration system”. American University Business Law Review. Vol. 5 No. 429. 2015. Pp. 429-444;

Patel, Nikesh, “An Emerging Trend in International Trade: A shift to safeguard against ISDS abuses and protect host state sovereignty”. Minnesota Journal of International Law. Vol. 26. Winter 2017. Pp. 273-302;

Porterfield, Matthew C. “Exhaustion of Local Remedies in Investor State Dispute Settlement: An Idea Whose Time has Come”, Yale Journal of. International law. Onlinefall. Vol. 41. 2015. Pp. 1-12;

Rihwanto, Yacob. “Bilateral Investment Treaties dan Penyelesaian Arbritase Internasional (Studi Kasus Pencabutan Izin Kuasa Pertambangan Churchill Mining)”. Lex Renaissance. Vol. 1 No. 1. January 2016. Pp.107 – 125;

Schreuer, Christoph. “Denunciation of the ICSID Convention and Consent to Arbitration”. The Backlash against Investment Arbitration in Michael Waibel. et. all (eds). 2010. The Backlash against Investment Arbitration: Perceptions and Reality. Pp. 353–368. Available ono website: http://www.univie.ac.at/intlaw/wordpress/pdf/denunciation_icsid.pdf.

Weiss, Martina A. Et. Al. 2015. International Investment Agreement (IIAS). Washington: Congressional Research Service;

Wellhausen, Rachel L.” Recend Trends in Investor State Dispute Settlement”. Journal of International Dispute Settlement. December 2016. Pp. 1-19. DOI: 10.1093/ jnlids/idv038;

Yackee, Jason Webb. “Do States Bragain over Investor State Dispute Settlement? Or Toward Greater Colaboration in the Study of Bilateral Investment Treaties”. Santa Clara Journal of International Law. Vol. 12. 2013. Pp.277-300;

Yackee, Jason Webb. “Do Bilateral Investment Treaties Promote Foreign Direct Investment? Some Hints from Alternative Evidence’. Virginia Journal of International Law. Vol. 51. 2010. Pp. 110-141.




DOI: http://dx.doi.org/10.20884/1.jdh.2018.18.2.1961

Refbacks

  • There are currently no refbacks.


Bookmark and Share


JURNAL DINAMIKA HUKUM Indexed by :
Crossref logo
 
Jurnal Dinamika Hukum
Faculty of Law, Universitas Jenderal SoedirmanCopyright of Jurnal Dinamika Hukum
Yustisia IV Building, Law Journal CenterISSN 2407-6562 (Online) ISSN 1410-0797 (Print)
Purwokerto, Central Java, Indonesia, 53122JDH is licensed under a Creative Commons Attribution 4.0 International License