Kepastian Hukum di Indonesia Terhadap Penyelesaian Sengketa Penanaman Modal Asing Melalui Lembaga Arbitrase Internasional

Abstract

In recent decades, foreign direct investment has experienced an increase across various parts of the world, including Indonesia. This phenomenon certainly has the potential to generate both positive and negative impacts simultaneously. The growing economic side may confront the unequal benefits received by Indonesia as the host country and foreign investors if problems arise in fulfilling obligations. This potential issue will continue if it is not resolved promptly. The existence of legal instruments becomes crucial to protect parties from unfair treatment, especially in the event of disputes that must be resolved through dispute resolution forums. The procedures employed should be efficient without involving lengthy processes, as parties generally prefer to resolve disputes through international arbitration forums. These forums are meant to ensure foreign investors' safety; however, in reality, some international investment treaties between countries often do not include more flexible dispute resolution procedures. This paper aims to examine the legal protection for parties involved in resolving foreign investment disputes through international arbitration in Indonesia, along with the mechanisms related to the enforcement of decisions and their execution. By utilizing the literature research method (library research), this paper will conduct a study based on written sources, regulations, as well as legal journal studies related to foreign investment in Indonesia and dispute resolution through international arbitration. This paper concludes that Indonesia, as the host country, has provided ample space for foreign investors with regulations that have been issued as legal guarantees for the involved parties.