Contents of the National Interest of Indonesia in the Bilateral Investment Treaty

Mira Dewi ,Abrar Saleng ,Juajir Sumardi ,Andi Mustari Pide

doi:10.7176/jlpg/115-04

Abstract

Economic cooperation between subjects of international law is generally expressed in various forms of agreements or international trade and investment between countries aimed at obtaining benefits from the parties entering into international cooperation. However, the BIT made by the Government of Indonesia still does not contain a balance between the rights and obligations of Investors and the Indonesian National Interest. This research is a normative research with statutory and case approach. The results of the study indicate that the current Indonesian investment agreement does not fully contain the national interest because it is based on social welfare based on Law No. 11 of 2009 has not been achieved by looking at the fact that there are still many people around the Freeport mining area who are still under poverty and housing and health conditions are very minimal compared to luxury buildings around the mine. In addition, the customary tribes around the investment (mining) location have their ulayat rights taken away and do not get protection. Based on economic theory, especially the middle way theory, investment agreements should not only provide benefits to investors but must also provide benefits to the recipient country of capital in this case the national interest. Keywords: Bilateral Investment Treaty, National Interest, Indonesia DOI: 10.7176/JLPG/115-04 Publication date: November 30 th 2021

Highlights

Economic cooperation between subjects of international law is generally expressed in various forms of agreements or international trade and investment between countries aimed at obtaining benefits from the parties entering into international cooperation
The results of the study indicate that the current Indonesian investment agreement does not fully contain the national interest because it is based on social welfare based on Law No 11 of 2009 has not been achieved by looking at the fact that there are still many people around the Freeport mining area who are still under poverty and housing and health conditions are very minimal compared to luxury buildings around the mine
Cooperation between subjects of international law in the economic field, both in the form of international trade and investment between countries, aims to benefit from the parties entering into international cooperation4, in its development leading to an international economic law system

Summary

Introduction

The BIT made by the Government of Indonesia still does not contain a balance between the rights and obligations of Investors and the Indonesian National Interest. Www.iiste.org welfare aspect is one of the indicators in terms of the national interest, in addition to the certainty of security, freedom, and justice.1 Explanation of the Law of the Republic of Indonesia No 25 of 2007 states that one of the goals of establishing a state government is the general welfare.

Results

Conclusion