Ministry of Finance of Republic of Indonesia | 21 June 2016
Government currently preparing draft of Government regulation on settlement of investment dispute
Jakarta, 21/06/2016 MoF - The government is currently preparing the Draft of Government Regulation (RPP) regarding settlement of investment dispute between the government and investors. This RPP is the implementation regulation of the Law Number 25 of 2007 concerning Investment, aiming to enhance legal certainty in terms of ease of doing business and investment in Indonesia.
“We need this regulation for required legal certainty, this is a matter of fairness for both the government and investors,” says Coordinating Minister for Economic Affairs Darmin Nasution as quoted from the website of Coordinating Ministry for Economic Affairs on Tuesday (21/06).
This RPP will regulate settlement for investment dispute both for domestic and foreign investors. Dispute is mainly settled through deliberation mechanism in the form of consultation and negotiation. This deliberation mechanism is limited to certain period of time.
The next step is through domestic arbitration for domestic investors or foreign arbitration for foreign investors. Besides arbitration mechanism, investment dispute can be settled through alternative dispute settlement or courts.
For information, this meeting was attended by Minister of Finance Bambang P. S. Brodjonegoro, Minister of Trade Thomas Lembong, and Head of Capital Investment Coordinating Board (BKPM) Franky Sibarani.