THE EXISTENCE OF ARBITRATION INSTITUTIONS AS A PLACE OF SETTLEMENT THE INVESTMENT DISPUTES AND THE IMPLICATIONS TO PROVIDE LEGAL CERTAINTY IN INVESTING
Sentosa Sembiring
Lecturer Faculty of Law Parahyangan Catholic University (UNPAR) Bandung
Abstract
In the investment law literature explained, in general investors choose an arbitration institution as a place to resolve investment disputes. Based on the reason that investors do not know in detail about the court system in the country where he is investing. Arbitration institutions are chosen assuming these institutions are independent. In Indonesia the Arbitration Institution is regulated in Law Number 30 of 1999 Concerning Arbitration and Alternative Dispute Resolution. In the legal system in Indonesia, investment disputes provide an alternative for investors in determining the choice of where to resolve investment disputes. In Law Number 25 Year 2007 Concerning Investment, explicitly explained the arbitration institution as an institution for resolving investment disputes between the state and investors. When viewed normatively, investment dispute resolution is not an obstacle. However, if the provisions of the arbitration law are further studied, it can cause uncertainty for investors in implementing the arbitration decision, because it does not necessarily allow for an arbitration decision. There must be approval from the Supreme Court. This certainly can lead to legal uncertainty for investors in carrying out investment.
Keywords: Arbitration, Investment dispute, Legal certainty
Topic: Investment and Settlement Disputes