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Reconstruction of Foreign Investment Dispute Settlement in Indonesia
Abstract
This research examines the resolution of domestic investment disputes under Law Number 25 of 2007 and outlines the obligations and responsibilities of investors in Indonesia. Using a normative juridical approach, the study finds that dispute resolution can take various forms, including deliberation, arbitration, alternative dispute resolution, and judicial proceedings. Notably, disputes between the government and foreign investors are resolved through agreed international arbitration. Additionally, investors are obligated to adhere to good corporate governance, implement corporate social responsibility, submit investment reports to the Investment Coordinating Body (BKPM), respect local cultural traditions, and comply with all legal regulations. Investors' responsibilities include ensuring lawful capital sources, bearing financial obligations for business abandonment, fostering healthy competition, safeguarding the environment, and ensuring worker welfare. This research contributes to understanding the legal framework of investment dispute resolution and investor obligations in fostering sustainable and responsible business practices in Indonesia.
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DOI: http://dx.doi.org/10.51825/yta.v5i1.30617
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