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

Abstract

The New Model of Bilateral Investment Treaty (BIT) for Indonesia

Author(s): Sefriani Sefriani

Recent years, there has been a surge in lawsuits at Investors State Dispute Settlement (ISDS) forum proposed by foreign investors to host state including Indonesia. Most of claims caused by policy of host state which is intended to protect basic rights of its society such as the right to health, right to healthy environment, tax, also the minimum standard of worker’s wage. This policy gives damages to foreign investor and considered as violation of Bilateral Investment Treaty (BIT). Most of BIT is open ended language, open up wide interpretation. This has prompted many countries including Indonesia to review Its International Investment Agreements (IIA) especially Bilateral Investment Treaty (BIT). Indonesia have already reviewed and terminated many of its Bilateral Investment Treaty despite being aware of the continued importance of BIT to increase the entry of investment to Indonesia. This study provides a comprehensive understanding regarding international investment law and gives a picture of the new model of BIT for Indonesia to balance the interest of both host state and foreign investor.