The Ambiguity of Implementation of Full Protection and Security Principle in Indonesia Investment Law

Abstract

Regarding international investment law, protection against foreign investment is a fundamental principle. The principle of protection is meant to attract foreign investors to increase state revenues. Full Protection and Security or FPS is one of protection principle that cover physical and non-physical protection to the investor. Indonesia already stipulated FPS in Law No. 25 Year 2007 on Investment and bilateral investment treaties. However, the scope of FPS provided on those regulations is ambiguous and there is no further explanation further by government. This research uses legal normative methodology. It means that authors not only to gather norms about FPS in Indonesia investment law but also to point out in which ambiguity of FPS implementation can be solved. The objectives of this research are to examine implementation and possible effects from FPS principle regulation in Indonesia law. This research concludes, that ambiguity on FPS regulation in Indonesia law will rise positive and negative effect. It will give policy space on investment for Indonesia in case of emergency and protection on national interest as positive side but in case of investment dispute in international forum it will be negative because it can broaden the term of FPS principle.