ISDS lawsuit: When corporation ignores state sovereignty

IGJ | 11 October 2019

ISDS lawsuit: When corporation ignores state sovereignty

The compilation of ISDS Case Stories in Indonesia

In order to facilitate foreign investment, pro-investor policies are often enacted by the Government. Starting from implementing low-wage policies, legalizing land grabbing, exploitation of natural resources, to the legalizing investment permits without any environmental impact analysis. However, when there are policies that are considered impede investment, investors could easily defend their rights that are violated by the Government through an investment dispute mechanism between investors and the State. Or we called it ISDS Mechanism. Investment protection through the investors lawsuit mechanism against the State will certainly more legalize human rights violations.

In the last 9 years since 2011, there has been an increasing of 6 cases of ISDS lawsuits faced by Indonesia, since the two previous cases in 1983 and 2004. From the total of 8 cases faced by Indonesia, as much as 50% were in the mining sector, including those filed by Churchill Mining, Planet Mining, Newmont Mining, and Indian Metal Ferro Alloys (IMFA). Two other cases related to the lawsuit of Rafat Ali Rizfi Rizvi and Hesham Al-waraq in the financial sector and Oleovest Ltd in the palm oil processing sector.

The book is aim to provide an understanding to the public about ISDS mechanism, by providing a clear description of real impact caused by ISDS lawsuit faced by the Government of Indonesia. The contents of this book are actually a collection of articles written by several authors, both by IGJ researchers and IGJ networks. Moreover, there are some of them have been published, and in this book was republished in the form of compilation of Indonesia’s ISDS cases stories.

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source: IGJ