Implementation of International Arbitration in Settlement of Investment Disputes: Challenges and Opportunities in Indonesia

DOI

10.2991/978-2-38476-362-7_16How to use a DOI?

Keywords

institutional arbitration; bilateral agreements; investment and investment

Abstract

Settlement of investment disputes through international arbitration is one of the mechanisms used to resolve disputes between foreign investors and host countries. International arbitration provides legal certainty and guarantees for the parties involved in the investment. However, the enforcement of international arbitral awards in Indonesia has encountered several challenges, including difficulties in the execution of awards and the authority of courts to annul arbitral awards. The provisions for the enforcement of international arbitration in Indonesia are governed by Law No. 30/1999 on Arbitration and Alternative Dispute Resolution and the 1958 New York Convention. An international arbitral award may be enforced in Indonesia if the award is rendered by an arbitral institution or individual arbitrator outside the jurisdiction of the Republic of Indonesia, or an award that under the provisions of the laws of the Republic of Indonesia is considered an international arbitral award. The authority of the court to annul an international arbitral award is limited to the authority to examine the validity in terms of the procedure for making arbitral awards, and to enter the subject matter of the dispute which is the authority of the arbitral institution. However, the implementation of international arbitration awards in Indonesia still faces challenges, such as the lack of legal certainty for investors who have won in international arbitration institutions. In the context of foreign investment, bilateral agreements such as the Bilateral Agreement between Indonesia and Singapore on Investment Promotion and Protection include clauses governing dispute settlement in the field of foreign investment. These clauses serve as a form of guarantee in case the parties are in dispute with each other, providing legal certainty and assurance for the parties involved in the investment.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

TY  - CONF
AU  - Andiko Febriyan Praja Dewa
AU  - Fifik Wiryani
PY  - 2025
DA  - 2025/02/28
TI  - Implementation of International Arbitration in Settlement of Investment Disputes: Challenges and Opportunities in Indonesia
BT  - Proceedings of the International Conference on Law Reform (5th Inclar 2024)
PB  - Atlantis Press
SP  - 102
EP  - 107
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-362-7_16
DO  - 10.2991/978-2-38476-362-7_16
ID  - Dewa2025
ER  -