INTERNATIONAL AGREEMENT

 

Investment Guarantee and Protection Agreement

A number of governments provide investment guarantees to other nationals who make overseas investment in their countries. In most cases, these guarantees cover compensation in case of nationalization or expropriation, damages or losses caused by incidents of war, revolution or insurrection and payments for any approved remittance pursuant to the investment in case of non-convertibility of currency of the host country.

To provide security for foreign investment, the Government of Indonesia concludes Investment Guarantee Agreement (IGA) with ASEAN governments. Besides, Indonesia signed bilaterally the Investment Promotion and Protection Agreements with 55 countries, namely: Argentina, Alger, Australia, Bangladesh, Belgium / Luxembourg, Cambodia, Chile, People Republic of China, Cuba, Czech Republic, Denmark, Egypt, Finland, France, Germany, Hungary, India, Italy, Jamaica, Jordan, Democratic People's Republic of Korea, South Korea, Kyrgyzstan, People Democratic Republic of Laos, Malaysia, Morocco, Mauritius, Mongolia, Mozambique, The Netherlands, Norway, Pakistan, The Philippines, Poland, Qatar, Romania, Singapore, Slovak Republic, Spain, Sri Lanka, Sudan, Suriname, Sweden, Switzerland, Syria, Thailand, Tunisia, Turkmenistan, Turkey, Ukraine, United Kingdom, Uzbekistan, Vietnam, Yemen and Zimbabwe.

To create a favorable international investment climate, Indonesia has also signed multilateral agreements, thereby promoting foreign direct investment in Indonesia. Indonesia is now a member of the Multilateral Investment Guarantee Agency (MIGA), which will protect investment against various political risks.

To deal with foreign investment disputes, Indonesia has become a signatory member of the International Center on the Settlement of Investment Disputes(ICSID).

 

Source: Indonesian's Investment Coordinating Board