THE STUDY OF LAW ON INVESTMENT LIBERALISATION POLICIES IN THE REGION OF ASEAN AND THE EFFECTS ON INDONESIA

THE STUDY OF LAW ON INVESTMENT LIBERALISATION POLICIES IN THE REGION OF ASEAN AND THE EFFECTS ON INDONESIA Delfiyanti Faculty of Law, Andalas University, Padang Email : ABSTRACT In order to realize a single ASEAN market through the free flow of investment in ASEAN, the ASEAN member states have agreed on the ASEAN Comprehensive Investment Agreement or known by the term ACIA signed in Cha-Am (Thailand) on February 26, 2009. The issue is how the rule of law against the liberalization of foreign investment in the ACIA Agreement and how its influence on Indonesia. This research method is a normative juridical research by using a qualitative data analysis technique. Based on the Article 1 (a) of ACIA related to the purpose of the establishment of ACIA the ACIA Agreement contains the legal concept of foreign investment: an investment regime that is "free and open" in ASEAN in order to achieve the ultimate goal of economic integration within the ASEAN Economic Community. This is done through progressive liberalization measures on investment regimes in the Member States of ASEAN. The concept of investment liberalization in the ASEAN region is also well supported by the principles of National Treatment (Article 5 of ACIA) and the principles of Most Favored Nation Treatment/MFN Treatment (Article 6, paragraph 1 of ACIA) in which these two principles are widely known as the principles of law in international economic law. While Indonesia itself has been also engaged in signing and ratifying the ACIA Agreement through Presidential Regulations Number 49 of 2011. This certainly provides a challenge and an opportunity to take advantage of this Agreement, as well as adjust the settings of Indonesian foreign investment (Law Number 25 of 2007) with the consent of the ACIA. Keywords: Implementation; Liberalization of Investment; ASEAN Region; Influence and Indonesia. A. INTRODUCTION ASEAN Economic Community (AEC) is the ultimate goal of economic integration that is contained in the ASEAN Vision 2020 that is moved forward into 2015. The initial phase is characterized by the existence of a "common market" and a single production base through the movement of goods, services and investment, labor as well as freer capital. The formation of the ASEAN Economic Community will provide opportunities for ASEAN 483 Yustisia Vol. 6 Number 3 (September - December 2017) The Study Of Law On Investment.... © 2017; This is an Open Access Research distributed under the terms of the Creative Commons Attribution Licensee (https://creativecommons.org/licenses/by/4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. member states to expand the scope of economies of scale, improving the goal attraction for investors and tourists, reducing the transaction costs of trade and improving trade and business facilities. In addition, the establishment of the ASEAN Economic Community will also provide the convenience and increase of intra-ASEAN market access and increasing transparency and accelerating the adjustment of domestic regulations and standardization. The establishment of the ASEAN Economic Community is also a thing that must be done by the ASEAN member states in order to face the global economy and liberalization of international trade. In addition, it is also driven by the growing number of organizations or regional economic blocs that continue to be in line with changes towards a free market economy in the form of trade liberalization. In this case, the economic regionalization has become a way to improve the international competitiveness of enterprises in the region. Various forms of trade agreements (customs union, free trade area and single market) within certain limits provide free-market benefits such as economies of scale in production, while at the same time blocking the benefits for outsiders, unless they invest into internal market and meet the demands of member states for technology transfer and job creation. According to Robert Gilpin and Jean Milis that regionalization is also a facility of collecting the resources and the establishment of regional corporations, such that it has become an important strategy used by the groups of countries to improve their economic and political power (Robert Gilpin and Jean Milis Gilpin, 2002: 379). Thus, the establishment of the ASEAN Economic Community as one of the regional organizations in the economic field needs to be done in order to strengthen regional economic cooperation in the ASEAN region. Some time ago the ASEAN have agreed to create a new legal instrument replacing the Bangkok Declaration, namely the ASEAN Charter. Establishment of the ASEAN Charter as a new legal instrument for ASEAN significant since ASEAN countries have mutually large interests and through their cooperation mechanism will get a lot of comparative advantages 484 Yustisia Vol. 6 Number 3 (September - December 2017) The Study Of Law On Investment.... (Jagdish Sachdev, 1978: 33). The desire to integrate ASEAN economies through the agreement to establish the ASEAN Economic Community is an effort to improve the economy of the countries in the region. As Cunan’s view which finds that the economic cooperation in a region needs to be improved in order to improve the welfare of the people who were in that area and is done through a treaty or agreement as in the ASEAN Economic Community (AEC) (Cunan, 1999: 21). Furthermore, in the framework of the ASEAN Economic Community also created the ASEAN Economic Community Blueprint which includes the stages of economic integration to be achieved by the ASEAN ahead through 4 (four) frameworks or pillars which include (Rizal A. Djaafara dan Aida S Budiman, 2008: 15-16): 1. ASEAN as a single market and production base with an element of international free flow of goods, services, investment, skilled labor, and freer flow of capital. 2. ASEAN as a region with high economic competitiveness, with elements of competition rules, consumer protection, intellectual property rights, infrastructure development, taxation and e-commerce. 3. ASEAN as a region with equitable economic development with elements of the small and medium enterprise development and the ASEAN integration initiatives for CLMV countries contained in the Initiative for ASEAN Integration. 4. ASEAN as a region fully integrated into the global economy with elements of a coherent approach to the economy outside of the region and increase participation in global production networks. ASEAN wishes to increase economic cooperation and regional integration through the establishment of the ASEAN Charter and the ASEAN Economic Community Blueprint above is an attempt to bind the member states of ASEAN to be more committed to the existing agreement. This is due during treaties existing implementations lack running optimally due to lack of enforcement and the many social factors that influence in the region (Eric 485 (...truncated)