OECD Investment Policy Reviews: Indonesia 2020

image of OECD Investment Policy Reviews: Indonesia 2020

Building on the achievements since the first OECD Investment Policy Review of Indonesia a decade ago, this 2nd Review presents an assessment of the investment climate in Indonesia to support the government in its ongoing reform efforts. It identifies challenges and opportunities in selected policy areas and provides recommendations to increase competitiveness, support growth and ensure investment contributions are shared widely and environmentally sustainable. The review places great emphasis on measures to build a sound, transparent and responsible investment environment to support a resilient economic recovery from the COVID-19 pandemic.

English Also available in: Indonesian

Investment protection and dispute resolution

This chapter examines the legal frameworks for investment protection and dispute resolution that apply to investors in Indonesia. It focuses on several core investment policy issues – the non-discrimination principle, protections for investors’ property rights and mechanisms for resolving investment disputes – under Indonesian law and Indonesia’s investment treaties. It also addresses the government’s recent policy approaches to data protection and cybersecurity, tackling corruption and public sector reforms. It takes stock of recent achievements, identifies key remaining challenges and proposes recommendations to address them. In terms of investment treaty policy, this chapter provides an overview of Indonesia’s investment treaties, analyses the main substantive protections and investor-state dispute settlement provisions in these treaties and identifies considerations for possible policy reforms.


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