ANALISIS TERHADAP PRINSIP FAIR AND EQUITABLE TREATMENT DALAM BILATERAL INVESTMENT TREATY (STUDI KASUS CHURCHILL MINING PLC MELAWAN REPUBLIK INDONESIA)

Abstract

Bilateral Investment Treaty (BIT) is one way in which the Indonesian government with other countries to support the implementation of foreign direct investment in Indonesia with the hope of creating a mutually beneficial situation for both countries, especially with the principle of the fair and equitable treatment in a BIT that is expected to provide protection for both parties. Writing method used to compile this research is the normative juridical approach or library research to conduct a study of the principle of law by collecting material from books, journal, the internet, legislation and other scholarly writings which closely related to the intent and purpose of the preparation of this research. The fair and equitable treatment principle is the most used standard by claimants in investment arbitration originated from BIT, as Churchill Mining Plc did against the Republic of Indonesia in the International Centre for Settlement of Investment Disputes (ICSID). Churchill Mining Plc said that the revocation of Ridlatama Group's Mining Permit breaches the guaranteed and enforceable standards of protection in agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Republic of Indonesia, particularly regarding the principle of fair and equitable treatment. This research shows that the Republic of Indonesia does not violate the fair and equitable treatment principle on the revocation of Ridlatama Group's Mining Permit because the Mining Permits revocation is accordance with the provisions of laws and regulations in force in the Republic of Indonesia. In addition, the simple and board objective nature of the standard gives no precise definition of fair and equitable treatment, so the further research of this principle is needed to see how the arrangement and its application in investment dispute settlement in the future.