International Law Discourse in Southeast Asia
Vol. 5 No. 1 (2026): January-June 2026

Navigating International Investment Law in Southeast Asia: The Case of Unfair Competition in Indonesia’s Mining Sector

Agus Lanini (Faculty of Law, Universitas Tadulako, Indonesia)
Elisabeth Christina Tan (Faculty of Law, National University of Colombia, Colombia)
Sergi Fernandez Alejandro (Sociedad Civil de Derecho y Políticas Públicas (SOCIPOL), Spain)



Article Info

Publish Date
19 Jul 2026

Abstract

This paper explores the intersection between international investment law and domestic regulatory frameworks in Southeast Asia, with a particular focus on unfair competition in Indonesia’s mining sector. As Southeast Asia continues to attract foreign direct investment (FDI), legal disputes involving foreign investors and host states have become more frequent, particularly in resource-rich industries. Using Indonesia as a case study, this research analyzes how allegations of unfair competition—such as discriminatory licensing, state favoritism toward domestic enterprises, and lack of transparency—can trigger claims under international investment agreements (IIAs). The novelty of this paper lies in its focus on the underexplored tension between international investment protections and national efforts to regulate competition in strategic sectors. Through doctrinal legal analysis and selected case reviews, the paper highlights inconsistencies between Indonesia’s domestic legal framework and its international obligations, particularly under bilateral investment treaties (BITs). The contribution of this study is twofold: first, it provides a critical legal mapping of how unfair competition claims in the mining sector may escalate to investor-state dispute settlement (ISDS); second, it offers policy recommendations to harmonize investment protection with fair competition principles. Ultimately, this paper argues that unless Southeast Asian countries, particularly Indonesia, reform their investment governance and competition policies, they risk increased litigation and a chilling effect on sustainable investment. This research adds to the growing discourse on how developing countries can balance investor protection with national economic sovereignty.

Copyrights © 2026






Journal Info

Abbrev

ildisea

Publisher

Subject

Law, Crime, Criminology & Criminal Justice

Description

International Law Discourse in Southeast Asia (ISSN Online 2829-9655 ISSN Print 2830-0297) is an open access double blind peer reviewed journal published by Faculty of Law Universitas Negeri Semarang and managed by Southeast Asian Studies Center Faculty of Law Universitas Negeri Semarang, Indonesia. ...