Protection Bilateral Investment Treaty as Treaty of International Discussion Resolution Supporting Indonesia Reform

Authors

  • Ayup Suran Ningsih Universitas Negeri Semarang, Indonesia, Indonesia
  • Aprila Niravita Universitas Negeri Semarang, Indonesia, Indonesia
  • Ali Masyhar Universitas Negeri Semarang, Indonesia, Indonesia
  • Suhadi Suhadi Universitas Negeri Semarang, Indonesia, Indonesia
  • Muhammad Sayuti Bin Hassan Universiti Kebangsaan Malaysia, Malaysia, Malaysia
  • Dewi Sulistianingsih Universitas Negeri Semarang, Indonesia, Indonesia
  • Muchammad Shidqon Prabowo Universitas Wahid Hasyim, Indonesia, Indonesia
  • Asmarani Ramli Universitas Negeri Semarang, Indonesia, Indonesia
  • Bayangsari Wedhatami Universitas Negeri Semarang, Indonesia, Indonesia
  • Ferra Tiara Maharani Universitas Negeri Semarang, Indonesia, Indonesia
  • Harumsari Puspa Wardhani Universitas Negeri Semarang, Indonesia, Indonesia

DOI:

https://doi.org/10.56087/substantivejustice.v7i1.274

Keywords:

Investment Treaties, Investment Reform, Dispute Resolution

Abstract

The implementation of the Bilateral Investment Treaty in Indonesia with foreign investors must still pay attention to the existence of Indonesian state sovereignty.  State sovereignty must be maintained by the host state to maintain the existence of the country in the international world. BIT has the main function as an international legal instrument that is useful in foreign investment activities with reciprocal relations in obtaining benefits between the guarantee of legal protection of the home state of foreign investors and the economic growth of the host state. BIT signatories are theoretically balanced and reciprocal, but they are often detrimental to host states, most of which come from developing countries. This research aims to find out the extent of Indonesia's implementation of BIT and still protect the existence of state sovereignty. The method used in this research uses normative and comparative juridical and this research has an analytical descriptive nature. Normative legal research is obtained by studying the Churchill Mining case approach and collecting data from articles, web, books, and websites and then comparing the implementation of BITs in Indonesia as a developing country and the United States as a developed country and comparing the implementation of BITs in fellow developing countries between Indonesia and Brazil. The first victory achieved by Indonesia against Churchill Mining in the resolution of the international investment dispute at the ICSID forum proved the BIT reform in Indonesia that continues to develop. This study showed that: first, The Bilateral Investment Agreement provides legal protection guarantees for foreign investors and settlement of settlement disputes through ICSID, an international investment settlement arbitration agency between the two countries that signed the BIT so that the BIT is a protection guarantee for investors. Second, Indonesia's victory against Churchill Mining proves that it has reformed the BIT that applies to Indonesia in a balanced manner to provide legal protection (host state) and the existence of state sovereignty (home state).

Downloads

Download data is not yet available.

References

Adeuti, B. R. (2021). Resolving Office Establishment Dispute in Nigeria through Alternative Dispute Resolution Mechanism: An Evolving Regime. Sriwijaya Law Review, 5(1), 115-129. https://doi.org/10.28946/slrev.Vol5.Iss1.826.pp115-129
Ardiansya S., Muh., Suradinata, P. E., & Sinaga, J. S. (2023). Perlindungan Hukum Terhadap Investor Online Ditinjau Dari Undang-Undang Nomor 25 Tahun 2007 Tentang Penanaman Modal. Jurnal Restorative Justice, 7(1). https://doi.org/10.35724/jrj.v7i1.5232
Dewi, Y. K., & Afriansyah, A. (2019). Dispute Settlement Mechanism In Bilateral Investment Treaties (BITs). Yuridika, 34(1), 153–174. https://doi.org/10.20473/ydk.v34i1.11403
Bhagwat, V., Brogaard, J., & Julio, B. (2021). A BIT goes a long way: Bilateral investment treaties and cross-border mergers. Journal of Financial Economics, 140(2). https://doi.org/10.1016/j.jfineco.2020.12.005
Handoko, B., & Prihadiati, RR. L. A. (2023). Kepastian Hukum Badan Arbitrase dan Alternatif Penyelesaian Sengketa Konstruksi Indonesia dalam Perjanjian Penanaman Modal Asing di Sektor Konstruksi. HUMANIORUM, 1(02). https://doi.org/10.37010/hmr.v1i02.16
Husnul, E., Suhaidi, H., Siregar, M., & Leviza, J. (2017). AKIBAT PENGHENTIAN BILATERAL INVESTMENT TREATY (BIT) INDONESIA-BELANDA YANG DILAKUKAN SECARA SEPIHAK OLEH INDONESIA. USU Law Journal, 5(2).
Kabir, S. F. (2021). Krisis dan Reformasi: Penyelesaian Sengketa dalam Perjanjian Investasi Bilateral di Negara Dunia ketiga. Mimbar Hukum Universitas Gadjah Mada, 33(2).
Ningsih, A. S. (2020). Legal Review of Financial Technology Peer To Peer Lending Based on Indonesian Collateral Law Perspective. Substantive Justice International Journal of Law, 3(2). https://doi.org/10.33096/substantivejustice.v3i2.73
Ningsih, A. S. (2021). The Legal Protection For Debtors In The Execution Of Mortgage At The Semarang State Assets And Auction Service Office. Jurisdictie: Jurnal Hukum Dan Syariah, 12(1).
Pasaribu, F. (2022). Analisa Putusan International Center for Settlement of Investment Dispute terhadap Perkara No. ARB/12/14 dan ARB/12/40 dapat meningkatkan Imunitas Negara Indonesia sebagai Host Country. Jurnal Syntax Transformation, 3(11). https://doi.org/10.46799/jst.v3i11.641
Rahayu, S. A. P., Anitasari, R. F., Putri, M. P. K., & Setyawati, A. A. A. D. (2023). Old Well Management from Investment Law Perspective. Yuridika, 38(2). https://doi.org/10.20473/ydk.v38i2.43924
Rahayu, S. A. P., & Kusumaningtyas, R. F. (2022). Implications of existence online single submission risk-based approach for foreign investors. AIP Conference Proceedings, 2573. https://doi.org/10.1063/5.0104101
Rahmadania, F. W. (2021). INDONESIA SEBAGAI HOST COUNTRY DALAM EKSPANSI BISNIS MEREK FASHION INTERNASIONAL. Jurnal Industri Kreatif Dan Kewirausahaan, 2(1). https://doi.org/10.36441/kewirausahaan.v2i1.207
Rihwanto, Y. (2016). Bilateral Investment Treaties dan Penyelesaian Arbritase Internasional (Studi Kasus Pencabutan Izin Kuasa Pertambangan Churchill Mining). Jurnal Lex Renaissance, 1(1). https://doi.org/10.20885/jlr.vol1.iss1.art7
Roshana Putri, R. (2019). Indonesia’s New Model of Bilateral Investment Treaty: Comparison with Brazil. Padjadjaran Journal of International Law, 3(2). https://doi.org/10.23920/pjil.v3i2.314
Sefriani, S. (2013). Investment Arbitration Bagi Negara Berkembang dan Terbelakang. Yustisia Jurnal Hukum, 2(2). https://doi.org/10.20961/yustisia.v2i2.10186
Tegarmas G., A. B. (2019). Perlindungan Kepentingan Nasional Melalui Klausula Dalam Bilateral Investment Treaty. Jurist-Diction, 2(6). https://doi.org/10.20473/jd.v2i6.15919
Wang, N., Verzijlbergh, R. A., Heijnen, P. W., & Herder, P. M. (2023). Incorporating indirect costs into energy system optimization models: Application to the Dutch national program Regional Energy Strategies. Energy, 276. https://doi.org/10.1016/j.energy.2023.127558

Downloads

Published

2024-06-04

Issue

Vol. 7 No. 1 (2024): Substantive Justice International Journal of Law

Section

Articles

Citation Check

License

Authors hold the copyright and give the journal rights to the first publication with the work being simultaneously licensed under the Creative Commons Attribution License, which allows others to share the work with the authorship and the initial publication in this journal. Authors free to deposit versions of this work in an institutional or other repository of their choice.