Legal Protection of Investors Through Bilateral Investment Treaties in Indonesia

The incessant investment across countries to cooperate is poured into a cooperation agreement, namely the Bilateral Investment Treaty (BIT). BITs help resolve disputes between investors and states through the ISDS mechanism. One example is the dispute between Churchill Mining PLC from the UK and Indonesia regarding alleged license forgery, which was brought to international arbitration based on the clause in the BIT between the two countries. The problem formulations in this research are how is the binding force of Bilateral Investment Treaties in the settlement of Investment disputes in Indonesia and how is the legal protection of investors in the Bilateral Investment Treaty on the revocation of business licenses by the Indonesian government. The type of research used is normative legal research with statutory and conceptual approaches. The results of this study indicate that in line with the UUPM, BITs are designed to provide protection to the parties including regarding dispute resolution through international arbitration institutions/ICSID, as in the case of BITs involving the UK and Indonesia. The legal basis for the protection of investors in Indonesia is regulated in the UUPM. BITs generally regulate the principles of fair and equal treatment, the prohibition of expropriation without adequate compensation, and provisions regarding dispute resolution mechanisms through international arbitration such as ICSID. Then related to the revocation of mining business licenses is regulated in the Minerba Law on the authority based on the regional boundaries owned by the regional government.