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Journal : Lentera Hukum

The ISDS Mechanism and Standards of Protection in the Investment Treaty Pandu Rizky Putra Pratama; Prita Amalia
Lentera Hukum Vol 7 No 2 (2020): LENTERA HUKUM
Publisher : University of Jember

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.19184/ejlh.v7i2.17348

Abstract

International investment activities require legal certainty for investors. While the host country also needs legal certainty related to state sovereignty, legal protection is needed for investors and the host country to realize legal certainty in investment activities. Countries in the world entered into investment agreements to provide legal protection for investment activities. In investment agreements, generally, there are requirements to comply with the national law of the host country to get protection from investment agreements. This study aims to review the implications of not fulfilling the obligations in the investment agreement to apply the benefits contained therein, specifically regarding ISDS mechanism and protection standards. This study finds that the impact of the non-fulfillment of these obligations on the ISDS mechanism depends on the admission clause specified in the Bilateral Investment Treaty (BIT). On standards of protection, it refers to general principles of international law and arbitration decisions, investments that violate these obligations do not receive international legal protection. This research suggests the Indonesian Government tighten the admission clause in the BIT to prevent investors from using the ISDS mechanism in the BIT and to specify the impact of violating obligations to comply with the national laws of the host country. KEYWORDS: International Investment Law, Standards of Protection, Bilateral Investment Treaty
Shareholders' Claim for Reflective Loss in International Investment Agreement through ISDS Arbitration Practice Belaputri, Addyana; Agusman, Damos Dumoli; Amalia, Prita
Lentera Hukum Vol 10 No 2 (2023): Human Rights and Economy in the Global South
Publisher : University of Jember

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.19184/ejlh.v10i2.39534

Abstract

Shareholders’ claim for reflective loss appears to be commonly accepted by the Investor-State Dispute Settlement (ISDS) tribunals. Several international investment agreements (IIAs) have construed the condition of losses or damage under IIA to address the shareholder reflective loss (SRL) issue. Nonetheless, through the ISDS decision, the interpretation appears to be disparate. This article will aim to analyze the status of SRL in IIA through conditions of losses or damages as investment dispute characteristics and IIA text formulation to limit such conditions in addressing SRL issues through juridical normative and comparative study with a descriptive-analytical characteristic. Foreign direct investment regimes driven by the IIA show how important the IIA’s role is in providing adequate protection of investment including dispute mechanisms set through. The author will use the juridical and comparative methods by reviewing the existing statutory and case laws. The condition of loss or damage under IIA also appears to cover SRL. The limitation through the scope of allowed claims regarding whose losses, have been interpreted by several tribunals to limit a direct claim for SRL. However, the interpretation seems to be inconsistent with the other tribunals. An explicit text formulation and applying the loss-based general rule into IIA will then help to address consistent and genuine outputs of the applicable rule to limit the condition of losses or damage pertaining to the claim for SRL. In conclusion, the condition of losses or damage led the tribunal to allow the claim for SRL, yet through a limitation of the condition, the claim for SRL will be construed with specific requirements and procedures to avoid intersectoral issues. State parties in negotiating IIA are suggested to consider limiting the condition of losses or damage by adopting text formulation that led the ISDS tribunal’s interpretation to a genuine meaning of the applicability rule which the parties intended to, specifically, regarding investor’s right to claim SRL. Thus, the risk of harm that the host state suffers will be avoided.Keywords: Foreign Direct Investment, International Investment, International Law.
Co-Authors AA Agustia Sinta Dewi Adi Nurzaman Adiza, Salza Fadila Afifah Zakiyatul Aulia Ahmad Farhan Baihaqqi Akbar, Amrul An An Chandrawulan An An Chandrawulan An An Chandrawulan Anhar Fauzan Priyono Anindita, Sashia Diandra Anindya Saraswati Ardiwinata Astuti, Violi Maulidya Charlieans Ning Aziz, Wahyu Rizkika Belaputri, Addyana Chandrawulan, An-An, Prof. Damos Dumoli Agusman Dandrivanto Budhijanto Danrivanto Budhijanto Dewanto, Jagad Putra Dewi Kania Sugiharti Dwi Linna Suswardany Erlien Erlien Aunina Linggar Aji Fachran, Syahreza Faradina, Tazky Aulia Fatimah Ibtisam Fery Irawan Garry Gumelar Pratama Hanan Aliya Putri Hayati, Aisyah Nur Helitha Novianty Muchtar Helitha Novianty Muchtar Huala Adolf Ida Bagus Mahawira Nawagani Inzaghi, Rafly Nauval IRAWAN, FERY Isis Ikhwansyah Isis Ikhwansyah Jessica Leonard Jonathan Matthew Jovanka Lingkanaya Kanris, Jesslyn Karami, Ahmad Adib Kurdi Kurdi Labib Wajdi, Muhammad Laksono, Wahyu Agung Leonard, Jessica Lingkanaya, Jovanka Makmun, M. Lazuardy Thariq Maulanisa, Hasna Fitri Nurzaman, Adi Nurzaman, R. Adi Owen, Patrick Pamungkas, Eksa Pamungkas, Eksa Pandu Rizky Putra Pratama Pupung Faisal Puput Mardiani Purba, Tesalonika Putri Pinuram Rambe Purnama Trisnamansyah Putri, Hanan Aliya Putri, Resha Roshana Qolby, Fatihatul Ramadhan, Ana Noviana Sashia Diandra Anindita Sinta Dewi Sinta Dewi Rosadi Suhendra, Hartono Syukri Syukri Taufik Rachmat Nugraha Velani Prastika Diyanto Velicia Theoartha Manalu Velly, Nicholas Vida Azaria Wahyu Agung Laksono Wangsit Restu Adi Guritno Wardhana, Yuki Mahardhito Adhitya Wawan Hermawan Wawan Hermawan Yogi Suprayogi Yogi Suprayogi Sugandi Yudi Azis