Minister Visits ICSID on Churchill Mining Case

 
Redaksi, Andin Aditya Rahman
 
The dispute between Britain-based mining company, Churchill Mining Plc, and the East Kutai Regional Government rages on having now moved to the next stage at the International Center for Settlement of Disputes (ICSID).
 
The dispute continues at the international level after the Supreme Court affirmed the revocation of Churchill’s mining licenseand rejected four separate reconsideration applicationsfrom four different companies owned by Churchill.
 
As hearings on the dispute continue at the ICSID, Amir Syamsuddin, Minister of Law and Human Rights, visited ICSID headquarters in Washington, D. C. initially to discuss matters relevant to the case.
 
However, Meg Kinnear, Secretary General of the ICSID, was reluctant to discuss the case with the Minister in order to uphold ICSID’s impartiality.
 
“Discussion was focused on rules and procedures because the ICSID’s Secretary General is indeed limited in deliberating about the ongoing case in order to retain impartiality,” said Amir in a press release received by Hukumonline on Monday.
 
In regard to the rules and procedures of the ICSID, Mr. Syamsuddin commented that a more stringent series of requirements is needed to bring a dispute to the ICSID, such as a requirement for a claimant to provide sufficient proof. The Minister explained that this will prevent foreign investors from exploiting the ICSID as an avenue to sue a host state based on frivolous evidence.
 
Such stringent requirements for submitting a dispute to the ICSID, according to Mr. Syamsuddin, will deter investors with bad faith, such as Churchill, from obtaining groundless profits.
 
“It should be emphasized that the authority to enforce law and justice is the right of a sovereign state and this cannot be intervened by any entity,” he said.
 
Bilateral Investment Treaty
In addition to the Churchill case, Mr. Syamsuddin also discussed recent developments regarding Indonesia’s bilateral investment treaties. According to Mr. Syamsuddin, many bilateral investment treaties between Indonesia and other nations need to be adjusted as Indonesia’s national interests develop.
 
Mr. Syamsuddin commented to the ICSID that when the existing bilateral investment treaties were made, Indonesia was in dire need of foreign investment. As a result, the treaties generally prioritized investor interests.
 
As circumstances have changed, Indonesia now has a better bargaining position with respect to investors. For starters, Mr. Syamsuddin continued, Indonesia is working on a bilateral investment treaty template to be used as a guideline for renegotiation investment treaties.
 
Ms. Kinnear applauded this move by Indonesia and added that many other countries have also made similar efforts. The United States and Canada, for instance, have drafted a new bilateral investment treaty model, which incorporates a wider authority for host states to regulate public interests and the social responsibility of investors.
 
To support Indonesia’s move in revising its bilateral investment treaties, Ms. Kinnear said that she is willing to cooperate with the Indonesian Government and provide recommendations and input based on the practices of other States and their related experiences.
 
(hot/kc)