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Abstract
This research aims to analyze the effectiveness of the ISDS exclusion provision in the dispute settlement mechanism stipulated in RCEP for Indonesia. This type of research uses a normative legal approach based on relevant international treaties, doctrines, and jurisprudence and a comparative legal approach, where researchers will compare investment dispute resolution applied by several countries. The research concludes that the exclusion of the ISDS mechanism in RCEP is the right move taken by the Government of Indonesia so that the country has the policy space to establish national policies that protect national interests. In the event that later on, based on the results of the review of the exclusion of ISDS mechanism, RCEP member countries agree to implement dispute settlement through the ISDS mechanism, then Indonesia needs to propose to be able to include the obligation to settle disputes through the domestic court mechanism for the first occasion and there is a need to strengthen the existing legal instruments, namely Presidential Decree No. 31/2012, either through amendments or the making of higher and more comprehensive laws and regulations.
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References
Act No. 22 of 2015: Protection of Investment Act, 2015.
Allee, Todd, Manfred Elsig, and Andre Lugg, “Who wrote the Rules for the Trans-Pacific Partnership?”, Research & Politics, July-Septmber 2016, Vol. 3, No. 3.
Dipute Settlement Understanding, World Trade Organization.
Directorate General for External Policies, Short Overview of the Regional Comprehensive Economic Partnerhip (RCEP), European, Februari 2021, tersedia pada https://www.europarl.europa.eu/RegData/etudes/BRIE/2021/653625/EXPO_BRI(2021)653625_EN.pdf, diakses pada tanggal 12 Oktober 2024.
DP, Yustinus Andri, “Perundingan RCEP; Payung Pengganti ISDS Dibutuhkan”, bisnis.com, 23 Oktober 2019, tersedia pada https://ekonomi.bisnis.com/read/20191023/12/1162416/perundingan-rcep-payung-hukum-pengganti-isds-dibutuhkan, diakses pada tanggal 20 Oktober 2024.
Dymond, Tony, Cameron Sim dan Tiffany Chan, “Dispute Settlement Mechanism Under CPTPP and the RCEP”, 27 Mei 2022, tersedia pada https://globalarbitrationreview.com/review/the-asia-pacific-arbitration-review/2023/article/dispute-settlement-mechanisms-under-the-cptpp-and-the-rcep#footnote-031-backlink, diakses pada tanggal 12 Oktober 2024.
Dymond, Tony, Cameron Sim, dan Benjamin Teo, “Investment Treaty Arbitration in the Asia-Pacific: The Impact of the CPTPP and the RCEP”, Global Arbitration Review, 07 July 2021, tersedia pada https://globalarbitrationreview.com/review/the-asia-pacific-arbitration-review/2022/article/investment-treaty-arbitration-in-the-asia-pacific-the-impact-of-the-cptpp-and-the-rcep#footnote-010-backlink, diakses pda tanggal 20 Oktober 2024.
Foo, Yvette, “Dispute Settlement under the Regional Comprehensive Economic Partnership: Part 1; An Overview of Chapter 19”, Centre for International Law National University of Singapore, tersedia pada https://cil.nus.edu.sg/blogs/dispute-settlement-under-the-regional-comprehensive-economic-partnership-part-1-an-overview-of-chapter-19-by-yvette-foo/#_ftnref19, diakses pada tanggal 12 Oktober 2024.
Freehills, Herbert Smith, “New Zealand Signs Side Letters with Five CPTPP Members to Exclude Compulsory Investor State Dispute Settlement, 09 Mei 2018, tersedia pada https://www.herbertsmithfreehills.com/notes/arbitration/2018-05/new-zealand-signs-side-letters-with-five-cptpp-members-to-exclude-compulsory-investor-state-dispute-settlement/, diakses pada tanggal 20 Oktober 2024.
Gao, Henry, The Investment Chapter in the Regional Comprehensive Economic Partnership: Enhanced Rules without Enforcement Mechanism, Jakarta, ERIA, 2022.
Harten, G.V., The Trouble with Foreign Investor Protection, Oxford: Oxford University Press, 2020, tersedia pada https://oxford.universitypressscholarship.com/view/10.1093/, diakses pada tanggal 20 Oktober 2024.
India’s 2016 Model-BIT.
Indonesia for Global Justice, “Tidak Mengatur Mekanisme ISDS dalam RCEP sudah Tepat”, tersedia pada https://igj.or.id/2019/10/25/tidak-mengatur-mekanisme-isds-dalam-rcep-sudah-tepat/, diakses pada tanggal 26 Oktober 2024.
Jong, WK, “Regional Comprehensive Economic Partnership: Overview and Economic Impact”, Asian Development Bank, No. 164, Desember 2020.
Juwana, Hikmahanto, “Anak Polah Bapak Kepradah di Kasus Churcill Mining” tersedia pada https://law.ui.ac.id/anak-polah-bapak-kepradah-di-kasus-churchill-mining-2/, diakses pada tanggal 26 Oktober 2024.
Kawharu, Amokura, dan Luke Nottage, “NZ Renounces ISDS; Deja Vu?”, Kluwer Arbitration Blog, 6 Desember 2017, tersedia pada https://arbitrationblog.kluwerarbitration.com/2017/12/06/booked-luke-nottage/, diakses pada tanggal 20 Oktober 2024.
Lando, Massimo, “Enhancing Conflict Resolution ‘ASEAN Way’: The Dispute Settlement System of the Regional Comprehensive Economic Partnership’, Journal of Dispute Settlement 98, Vo. 13, No. 1, 2022.
Lugg, Andrew, et al., ‘Why is There No Investor-State Dispute Settlement in RCEP? Bargaining and Contestation in the Investment Regime’, Cambridge University Press, Business and Politics (2024), 1-28.
Nottage, L.R., “Settling Investor-State Disputes, Asia Pacific Style”, East Asia Forum, 25 Mei 2019, tersedia pada https://www.eastasiaforum.org/2019/05/25/settling-investor-state-disputes-asia-pacific-style/, diakses pada tanggal 12 Oktober 2024.
Nottage, L.R., dan S. Thanitcul, “International Investment Arbitration in Southeast Asia: Guest Editorial”, Sydney Law School Research Paper No. 16/95, 2016, tersedia pada https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2862272, diakses pada tanggal 12 Oktober 2024.
Permana, Rizky Banyualam., “Penyelesaian Sengketa Dalam Perjanjia Perdagangan Megaregional: Regional Comprehensive Economic Partnership (RCEP) Agreement”, Arena Jurnal Ilmu Hukum, Vol. 16, No. 1, April 2023.
Puig, S., dan G. Shaffer, “Imperfecr Alternatives: Institutional Choice and the Reform of Investment Law, American Journal of International Law, 112 (3), 2018.
Qumba, Mmiselo Freedom, “South Africa’s Move Away from International Investor-Dispute: A Breakthrough or Bad Omen for Investment in the Developing World?”, De Jure (Pretoria) Vol. 52 N.1 Pretoria 2019, tersedia pada https://scielo.org.za/scielo.php?script=sci_arttext&pid=S2225-71602019000100021#top_fn75.
Ranald, Patricia, “When Even Winning is Lossing”, Sydney Business Insight, tersedia pada https://sbi.sydney.edu.au/when-even-winning-is-losing-the-surprising-cost-of-defeating-philip-morris-over-plain-packaging/, diakses pada tanggal 20 Oktober 2024.
Söderman, Martin, India’s 2016 Model Bilateral Investment Treaty, Stockhoms: Stockholms Universitet, 2020.
The Regional Comprehensive Economic Partnership.
UN Trade and Development (UNCTAD), tersedia pada https://investmentpolicy.unctad.org/country-navigator/98/india, diakses pada tanggal 26 Oktober 2024.
References
Act No. 22 of 2015: Protection of Investment Act, 2015.
Allee, Todd, Manfred Elsig, and Andre Lugg, “Who wrote the Rules for the Trans-Pacific Partnership?”, Research & Politics, July-Septmber 2016, Vol. 3, No. 3.
Dipute Settlement Understanding, World Trade Organization.
Directorate General for External Policies, Short Overview of the Regional Comprehensive Economic Partnerhip (RCEP), European, Februari 2021, tersedia pada https://www.europarl.europa.eu/RegData/etudes/BRIE/2021/653625/EXPO_BRI(2021)653625_EN.pdf, diakses pada tanggal 12 Oktober 2024.
DP, Yustinus Andri, “Perundingan RCEP; Payung Pengganti ISDS Dibutuhkan”, bisnis.com, 23 Oktober 2019, tersedia pada https://ekonomi.bisnis.com/read/20191023/12/1162416/perundingan-rcep-payung-hukum-pengganti-isds-dibutuhkan, diakses pada tanggal 20 Oktober 2024.
Dymond, Tony, Cameron Sim dan Tiffany Chan, “Dispute Settlement Mechanism Under CPTPP and the RCEP”, 27 Mei 2022, tersedia pada https://globalarbitrationreview.com/review/the-asia-pacific-arbitration-review/2023/article/dispute-settlement-mechanisms-under-the-cptpp-and-the-rcep#footnote-031-backlink, diakses pada tanggal 12 Oktober 2024.
Dymond, Tony, Cameron Sim, dan Benjamin Teo, “Investment Treaty Arbitration in the Asia-Pacific: The Impact of the CPTPP and the RCEP”, Global Arbitration Review, 07 July 2021, tersedia pada https://globalarbitrationreview.com/review/the-asia-pacific-arbitration-review/2022/article/investment-treaty-arbitration-in-the-asia-pacific-the-impact-of-the-cptpp-and-the-rcep#footnote-010-backlink, diakses pda tanggal 20 Oktober 2024.
Foo, Yvette, “Dispute Settlement under the Regional Comprehensive Economic Partnership: Part 1; An Overview of Chapter 19”, Centre for International Law National University of Singapore, tersedia pada https://cil.nus.edu.sg/blogs/dispute-settlement-under-the-regional-comprehensive-economic-partnership-part-1-an-overview-of-chapter-19-by-yvette-foo/#_ftnref19, diakses pada tanggal 12 Oktober 2024.
Freehills, Herbert Smith, “New Zealand Signs Side Letters with Five CPTPP Members to Exclude Compulsory Investor State Dispute Settlement, 09 Mei 2018, tersedia pada https://www.herbertsmithfreehills.com/notes/arbitration/2018-05/new-zealand-signs-side-letters-with-five-cptpp-members-to-exclude-compulsory-investor-state-dispute-settlement/, diakses pada tanggal 20 Oktober 2024.
Gao, Henry, The Investment Chapter in the Regional Comprehensive Economic Partnership: Enhanced Rules without Enforcement Mechanism, Jakarta, ERIA, 2022.
Harten, G.V., The Trouble with Foreign Investor Protection, Oxford: Oxford University Press, 2020, tersedia pada https://oxford.universitypressscholarship.com/view/10.1093/, diakses pada tanggal 20 Oktober 2024.
India’s 2016 Model-BIT.
Indonesia for Global Justice, “Tidak Mengatur Mekanisme ISDS dalam RCEP sudah Tepat”, tersedia pada https://igj.or.id/2019/10/25/tidak-mengatur-mekanisme-isds-dalam-rcep-sudah-tepat/, diakses pada tanggal 26 Oktober 2024.
Jong, WK, “Regional Comprehensive Economic Partnership: Overview and Economic Impact”, Asian Development Bank, No. 164, Desember 2020.
Juwana, Hikmahanto, “Anak Polah Bapak Kepradah di Kasus Churcill Mining” tersedia pada https://law.ui.ac.id/anak-polah-bapak-kepradah-di-kasus-churchill-mining-2/, diakses pada tanggal 26 Oktober 2024.
Kawharu, Amokura, dan Luke Nottage, “NZ Renounces ISDS; Deja Vu?”, Kluwer Arbitration Blog, 6 Desember 2017, tersedia pada https://arbitrationblog.kluwerarbitration.com/2017/12/06/booked-luke-nottage/, diakses pada tanggal 20 Oktober 2024.
Lando, Massimo, “Enhancing Conflict Resolution ‘ASEAN Way’: The Dispute Settlement System of the Regional Comprehensive Economic Partnership’, Journal of Dispute Settlement 98, Vo. 13, No. 1, 2022.
Lugg, Andrew, et al., ‘Why is There No Investor-State Dispute Settlement in RCEP? Bargaining and Contestation in the Investment Regime’, Cambridge University Press, Business and Politics (2024), 1-28.
Nottage, L.R., “Settling Investor-State Disputes, Asia Pacific Style”, East Asia Forum, 25 Mei 2019, tersedia pada https://www.eastasiaforum.org/2019/05/25/settling-investor-state-disputes-asia-pacific-style/, diakses pada tanggal 12 Oktober 2024.
Nottage, L.R., dan S. Thanitcul, “International Investment Arbitration in Southeast Asia: Guest Editorial”, Sydney Law School Research Paper No. 16/95, 2016, tersedia pada https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2862272, diakses pada tanggal 12 Oktober 2024.
Permana, Rizky Banyualam., “Penyelesaian Sengketa Dalam Perjanjia Perdagangan Megaregional: Regional Comprehensive Economic Partnership (RCEP) Agreement”, Arena Jurnal Ilmu Hukum, Vol. 16, No. 1, April 2023.
Puig, S., dan G. Shaffer, “Imperfecr Alternatives: Institutional Choice and the Reform of Investment Law, American Journal of International Law, 112 (3), 2018.
Qumba, Mmiselo Freedom, “South Africa’s Move Away from International Investor-Dispute: A Breakthrough or Bad Omen for Investment in the Developing World?”, De Jure (Pretoria) Vol. 52 N.1 Pretoria 2019, tersedia pada https://scielo.org.za/scielo.php?script=sci_arttext&pid=S2225-71602019000100021#top_fn75.
Ranald, Patricia, “When Even Winning is Lossing”, Sydney Business Insight, tersedia pada https://sbi.sydney.edu.au/when-even-winning-is-losing-the-surprising-cost-of-defeating-philip-morris-over-plain-packaging/, diakses pada tanggal 20 Oktober 2024.
Söderman, Martin, India’s 2016 Model Bilateral Investment Treaty, Stockhoms: Stockholms Universitet, 2020.
The Regional Comprehensive Economic Partnership.
UN Trade and Development (UNCTAD), tersedia pada https://investmentpolicy.unctad.org/country-navigator/98/india, diakses pada tanggal 26 Oktober 2024.