The urgency of harmonization between investment law in Indonesia and international law in capital investment disputes resolution

Abdul Halim Barkatullah and Djumadi
Additional contact information
Abdul Halim Barkatullah: Faculty of Law, Universitas Lambung Mangkurat, Banjarmasin, Indonesia
Djumadi: Faculty of Law, Universitas Lambung Mangkurat, Banjarmasin, Indonesia

Journal of Advances in Humanities and Social Sciences, 2018, vol. 4, issue 3, 154-160

Abstract: In the era of trade liberalization marked with mega competition, investors have been more freely to invest. For that the recipient of capital must prepare various means to attract investors. Consideration for potential investors, if he wants to invest his capital abroad is the existence of dispute resolution institutions between investors and the host country. In Indonesia after the Capital Market Law settlement of investment disputes, in the resolution of investment disputes between investors and the Government of the Republic of Indonesia through arbitration institutions. Indonesia has ratified the New York Convention 1958, then the convention becomes national law. This means that the foreign arbitral award will automatically be recognized and enforceable in Indonesia. Arbitration institutions as one of the Alternative Dispute Resolution (ARD) in Indonesia has been legitimately stronger with the enactment of Arbitration and ADR law. With the issuance of this law, doubts on the execution of arbitral awards, especially international arbitral awards can be minimized. Thus, the arrangements of foreign investment in Indonesia should also be harmonize with the regulations of International Law, in this case the International Trade Law of GATT/WTO and International Center for the Settlement of Investment Disputes (ICSID) Convention on the settlement of investment disputes between States and Nationals of other States. This does not mean that Indonesia has transferred its sovereignty to the International Law, since the principles of GATT/WTO has exceptions and the implementation of the ICSID Convention in dispute resolution should have prior written approval from the Government of Indonesia.

Keywords: Investment; Disputes; Capital investment (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://tafpublications.com/platform/Articles/full-jahss4.3.4.php (application/pdf)
https://tafpublications.com/gip_content/paper/Jahss-4.3.4.pdf (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:apb:jahsss:2018:p:154-160

DOI: 10.20474/jahss-4.3.4

Access Statistics for this article

Journal of Advances in Humanities and Social Sciences is currently edited by Dr. Yi-Hsing Hsieh

More articles in Journal of Advances in Humanities and Social Sciences from Dr. Yi-Hsing Hsieh Calle Alarcon 66, Sant Adrian De Besos 08930, Barcelona Spain.
Bibliographic data for series maintained by Dr. Yi-Hsing Hsieh ().