Indonesia's Bold Strategy on Bilateral Investment Treaties

Seeking an Equitable Climate for Investment?

    Research output: Contribution to journalReview articleResearchpeer-review

    Abstract

    This paper examines the recent decision by the Indonesian government to terminate its Bilateral Investment Treaty (BIT) with the Netherlands when it expires on 30 June 2015. It discusses the likely driving forces behind Indonesia's decision, and its alternative future strategy. In particular, it focuses upon controversial provisions on investor-state dispute settlement (ISDS) universally included in BITs. While Indonesia's termination may appear of minor consequence at first glance, it has significant implications in terms of Indonesia's obligations under international law as well its capacity to exercise its rights as a sovereign state to act domestically in the public interest. The termination of Indonesia's first investment treaty containing the ISDS mechanism is also highly symbolic because it represents the first step in a reported strategy to review all its sixty-seven BITs. Indonesia thus joins a growing number of countries concerned about perceived excessive corporate rights enshrined in investment agreements as being incompatible with national development objectives.

    Original languageEnglish
    Pages (from-to)124-151
    Number of pages28
    JournalAsian Journal of International Law
    Volume7
    Issue number1
    Early online date11 Jan 2016
    DOIs
    Publication statusPublished - 1 Jan 2017

    Fingerprint

    treaty
    Indonesia
    climate
    investor
    national development
    public interest
    international law
    obligation
    Netherlands

    Cite this

    @article{b3aac9f251cb4d0eb9715d7ba09852cd,
    title = "Indonesia's Bold Strategy on Bilateral Investment Treaties: Seeking an Equitable Climate for Investment?",
    abstract = "This paper examines the recent decision by the Indonesian government to terminate its Bilateral Investment Treaty (BIT) with the Netherlands when it expires on 30 June 2015. It discusses the likely driving forces behind Indonesia's decision, and its alternative future strategy. In particular, it focuses upon controversial provisions on investor-state dispute settlement (ISDS) universally included in BITs. While Indonesia's termination may appear of minor consequence at first glance, it has significant implications in terms of Indonesia's obligations under international law as well its capacity to exercise its rights as a sovereign state to act domestically in the public interest. The termination of Indonesia's first investment treaty containing the ISDS mechanism is also highly symbolic because it represents the first step in a reported strategy to review all its sixty-seven BITs. Indonesia thus joins a growing number of countries concerned about perceived excessive corporate rights enshrined in investment agreements as being incompatible with national development objectives.",
    author = "David Price",
    year = "2017",
    month = "1",
    day = "1",
    doi = "10.1017/S2044251315000247",
    language = "English",
    volume = "7",
    pages = "124--151",
    journal = "Asian Journal of International Law",
    issn = "2044-2513",
    publisher = "Cambridge University Press",
    number = "1",

    }

    Indonesia's Bold Strategy on Bilateral Investment Treaties : Seeking an Equitable Climate for Investment? / Price, David.

    In: Asian Journal of International Law, Vol. 7, No. 1, 01.01.2017, p. 124-151.

    Research output: Contribution to journalReview articleResearchpeer-review

    TY - JOUR

    T1 - Indonesia's Bold Strategy on Bilateral Investment Treaties

    T2 - Seeking an Equitable Climate for Investment?

    AU - Price, David

    PY - 2017/1/1

    Y1 - 2017/1/1

    N2 - This paper examines the recent decision by the Indonesian government to terminate its Bilateral Investment Treaty (BIT) with the Netherlands when it expires on 30 June 2015. It discusses the likely driving forces behind Indonesia's decision, and its alternative future strategy. In particular, it focuses upon controversial provisions on investor-state dispute settlement (ISDS) universally included in BITs. While Indonesia's termination may appear of minor consequence at first glance, it has significant implications in terms of Indonesia's obligations under international law as well its capacity to exercise its rights as a sovereign state to act domestically in the public interest. The termination of Indonesia's first investment treaty containing the ISDS mechanism is also highly symbolic because it represents the first step in a reported strategy to review all its sixty-seven BITs. Indonesia thus joins a growing number of countries concerned about perceived excessive corporate rights enshrined in investment agreements as being incompatible with national development objectives.

    AB - This paper examines the recent decision by the Indonesian government to terminate its Bilateral Investment Treaty (BIT) with the Netherlands when it expires on 30 June 2015. It discusses the likely driving forces behind Indonesia's decision, and its alternative future strategy. In particular, it focuses upon controversial provisions on investor-state dispute settlement (ISDS) universally included in BITs. While Indonesia's termination may appear of minor consequence at first glance, it has significant implications in terms of Indonesia's obligations under international law as well its capacity to exercise its rights as a sovereign state to act domestically in the public interest. The termination of Indonesia's first investment treaty containing the ISDS mechanism is also highly symbolic because it represents the first step in a reported strategy to review all its sixty-seven BITs. Indonesia thus joins a growing number of countries concerned about perceived excessive corporate rights enshrined in investment agreements as being incompatible with national development objectives.

    UR - http://www.scopus.com/inward/record.url?scp=84959080455&partnerID=8YFLogxK

    U2 - 10.1017/S2044251315000247

    DO - 10.1017/S2044251315000247

    M3 - Review article

    VL - 7

    SP - 124

    EP - 151

    JO - Asian Journal of International Law

    JF - Asian Journal of International Law

    SN - 2044-2513

    IS - 1

    ER -