Under international law, a state is immune from execution or judgement before any foreign jurisdiction. However, parallel with the urge to international transaction including between a state and a corporate, the international community demand a “protection” to the right of a corporate against a foreign government. Thus, international law is introducing a new doctrine of state immunity. Under the restrictive immunity, a state waives its right to immunity so long it become a party in a commercial transaction. On the other hand, the older doctrine which is absolute immunity, is giving the full protection to the state to any claim against it including its assets and properties. The purpose of this paper is to elaborate the current issue regarding the state immunity under international commercial transaction from the perspective of international law. The methodology used for this paper is library research. The research concludes that a sovereign is still having its immunity against any claim brought under international commercial transaction with certain conditions as required under international law.
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