Foreign mining investment regime in Indonesia: regulatory risk under the revival of resource nationalism policy
by Fifi Junita
International Journal of Private Law (IJPL), Vol. 8, No. 3/4, 2017

Abstract: The resource nationalism policy over natural resources is the existing policy affecting resource rich states nowadays. This policy has greatly affected mining regulation and foreign mining investment in developing states. Indonesia as one of the resource rich states is not sterile from the influence of resource nationalism policy by basing this policy on the Article 33 of the 1945 Constitution (fourth amendments). The revival of resource nationalism policy has substantial impact upon the foreign investment regulatory regime in Indonesia. There has been a tendency that new mining law and its implementing regulation have shifted to the adoption of the resource nationalism policy. This study will firstly analyse the extent to which the policy of resource nationalism has affected mining regulatory regime in Indonesia. This study also demonstrates that the resource nationalism policy has resulted in the increase of state control over mining resources and the limitation of foreign ownership over natural resources in mining industry. The adoption of resource nationalism policy which is coupled with the lack of regulatory governance has increased regulatory risk in foreign mining investment in Indonesia. Accordingly, this will also have a significant implication on the bilateral investment treaty (BIT) that has been established between Indonesia and other jurisdictions globally. Therefore, this study proposes policy recommendations for resolving this issue.

Online publication date: Fri, 13-Oct-2017

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Private Law (IJPL):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com