Indonesia 's Participation Under Investment Agreements

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Indonesia continues its participation under investment agreements. In this period, Indonesia is less active in signing BITs, but more active in signing multilateral TIPs compare to those in previous era. Indonesia’s BITs have similarities with the previous one particularly related to the definition of investment, protection of investment, treatment of investment, expropriation, compensation for loss and transfer. Some differences of Indonesia’s investment agreements in this period are hereby explained. With respect to the application of other provisions, some BITs have included the provision that are commonly known as ‘umbrella clause’. To illustrate, Indonesia-Germany BIT in 2003 states that: ‘each Contracting Party shall observe any …show more content…

Some differences from these agreements compare to Indonesia’s BITs are hereby explained. First, ASEAN-India FTA limits the field of co-operation, covering only manufacturing, agriculture, fishery, forestry, and mining and quarrying. Next almost all agreements include national treatment provision. To illustrate, AANZFTA states that: Each Party shall accord to investors of another Party, and to covered investments, in relation to the establishment, acquisition, expansion, management, conduct, operation, liquidation, sale, transfer or other disposition of investments, treatment no less favourable than that it accords, in like circumstances, to its own investors and their investments. ASEAN-China FTA is the only agreement allowing what it is called ‘Non-Performing Measures’ by stating that MFN and National Treatment shall not apply to the following situations: (a) any existing or new non-conforming measures maintained or adopted within its territory; (b) the continuation or amendment of any nonconforming measures referred to in Subparagraph (a). Almost all this multilateral TIPs includes provision that does not exist in BITs. These include provision relating to temporary safeguard measures, SDT for newer member of ASEAN, and facilitation of

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