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Journal : Yuridika

FDI on Tourism and the Environmental Damage: What Indonesia’s Trade and Investment Agreements Can Do? I Gusti Ngurah Parikesit Widiatedja
Yuridika Vol. 34 No. 2 (2019): Volume 34 No 2 May 2019
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (354.703 KB) | DOI: 10.20473/ydk.v34i2.7927

Abstract

The existence of FDI on tourism has provided benefits, covering job opportunities, transfer of technology, government revenue, and the partnership with small and medium enterprises. However, FDI on tourism has also contributed to environmental damage in Indonesia. This paper is aimed to analyse whether trade and investment agreements that involve Indonesia can contribute to prevent and mitigate environmental damage as a result from FDI on tourism. This article is normative research, examining the existing trade and investment agreements that involve Indonesia and compare them with other countries’ agreements. This paper argues that there is evidence to suggest that trade and investment agreements may incorporate provisions in order to ameliorate environmental harm from the existence of FDI on tourism. However, Indonesia has not incorporated any such provisions in its own agreements. Hence, this paper explains that there will be three suggestions to be considered, namely: Indonesia should start putting environmental concern under its trade schedule; Indonesia should consider opening environmental services; and Indonesia should start putting environmental concern in its investment agreements.
Foreign Direct Investment in Tourism and the Feasibility of Incorporating the United Nation Guiding Principles on Business and Human Rights in Indonesia I Gusti Ngurah Parikesit Widiatedja
Yuridika Vol. 37 No. 2 (2022): Volume 37 No 2 May 2022
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/ydk.v37i2.36281

Abstract

Foreign direct investment (FDI) is critical to Indonesia's economic development. Tourism is one of the most appealing investment industries. It has made a significant contribution to employment creation, tax revenue and domestic value addition. However, FDI in tourism has had negative environmental consequences. Moreover, Indonesian trade agreements and investment treaties do not reflect environmental concerns. The schedule under the General Agreement on Trade in Services (GATS) follows a similar trend, although other countries’ practices have shown that Indonesia can add this concern. Domestic laws and policies are also silent because the goal of economic growth outweighs protecting the environment. The United Nations Guiding Principles on Business and Human Rights (Guiding Principles) govern states' obligations to defend human rights and companies' obligations to respect and give remedy. This article examines the feasibility of incorporating the Guiding Principles into FDI in tourism. The Guiding Principles, together with the Global Code Ethics for Tourism, would provide a starting point for more robust legal frameworks for foreign tourism companies and emphasise sustainable development.