Journal of Legal, Ethical and Regulatory Issues (Print ISSN: 1544-0036; Online ISSN: 1544-0044)


Asean investment liberalisation regime and the implication for Indonesia

Author(s): An An Chandrawulan, Prita Amalia, Gina Rachmawati

 The new agreement regulates investment in ASEAN namely ASEAN Comprehensive Investment Agreement (ACIA). Investment with a free and open regime are built through this regulation in order to create ASEAN as an attractive choice for investment. As an ACIA came into force on 29 March 2012, it becomes a binding legal document on investment in ASEAN. As ACIA becomes a binding instrument, it implicates the member to implement this agreement in their national law. Commitment or political will of each member is the main key for ACIA to be fully applied. This paper discussed the practice of Indonesia regarding its commitment in liberalising investment in ACIA era and the comparison between Indonesian Law on investment with ACIA’s provisions and relation to Indonesia 1945 Constitution. Methodology of research used in this study was a normative juridical approach and legal comparative. The specifications used are descriptive analytical. Three important principles in ACIA that every ASEAN member must adhere are principles of protection, compensation and settlement of disputes. Indonesian Law on investment has adopt that three principle but lacks detailed provisions implementing three principles. Therefore it needs more extensive regulations in the Indonesian Law on investment.

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