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Abstract

Decentralisation system in Indonesia was introduced after the fall of the former President Soeharto with the objective of ensuring good governance and equitable development across all regions in the country. Unfortunately, the implementation of desentralisasi has been complicated. Some scholars have suggested that the model was flawed as it did not consider Indonesia’s context of less developed administrative institutions in the regions. Not only did desentralisasi cause headaches for the government, it also created confusion for foreign investors. Consequently, it affects the investment climate in the country and undermines the perception of Indonesia as an attractive place to invest in. In certain cases, desentralisasi has also led to claims by foreign investors for investor-State arbitration under Indonesia’s international investment agreements (IIAs). This paper analyses the problems of desentralisasi in Indonesia, its effects to foreign investors and suggests ways to alleviate the problems by modifying and using Indonesia’s IIAs effectively.

Bahasa Abstract

Setelah jatuhnya rezim Soeharto, sistem pemerintahan desentralisasi mulai diterapkan di Indonesia dengan tujuan untuk memastikan tata kelola yang baik dan pembangunan yang adil di seluruh wilayah Republik Indonesia. Sayangnya, penerapan desentralisasi sangatlah sulit. Beberapa akademisi mengatakan bahwa model sistem desentralisasi yang diterapkan di Indonesia tidak sesuai dengan situasi di lapangan di Indonesia, khususnya di daerah-daerah yang belum mempunyai kantor-kantor administratif yang berfungsi dengan baik. Desentralisasi menimbulkan berbagai masalah bagi pemerintah dan membingungkan para investor asing. Akibatnya, desentralisasi memperburuk iklim investasi di Indonesia dan menimbulkan persepsi negatif mengenai Indonesia sebagai tempat berinvestasi. Dalam beberapa kasus tertentu, desentralisasi juga menyebabkan munculnya tuntutan-tuntutan oleh para investor asing di arbitrase antara investor dan Pemerintah berdasarkan perjanjian investasi internasional (PII) Indonesia. Makalah ini menganalisa masalah-masalah yang ditimbulkan oleh desentralisasi di Indonesia, efek-efeknya bagi para investor asing dan memberikan saran mengenai cara-cara untuk menangani beberapa masalah tersebut dengan mengubah dan menggunakan PII Indonesia secara efektif.

References

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