<![CDATA[The dispute between Churchill Mining Plc. and the Government of Indonesia at ICSID became a critical precedent for evaluating foreign investment protection in Indonesia’s mining sector. Churchill filed claims of expropriation and violation of the Fair and Equitable Treatment (FET) principle after the revocation of mining permits in the East Kutai Coal Project (EKCP). These permits, obtained through local partner Ridlatama Group, were later found to be based on forged documents. Although Churchill denied involvement, the tribunal ruled that the company failed to conduct proper due diligence, rendering its investment inadmissible. This paper analyzes the legal implications of the case on Indonesia’s regulatory framework. Despite Indonesia’s victory, the case exposed structural vulnerabilities in licensing supervision, coordination between government levels, and the limitations of the Indonesia–UK Bilateral Investment Treaty (BIT), particularly the absence of clauses addressing illegal conduct during the investment. As a response, Indonesia has revised its BITs and recentralized mining and forestry permit authorities to ensure stronger state control and legal certainty. The Churchill case demonstrates that international investment protection is not absolute, it requires investors to act with transparency and in good faith.]]>
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