Harmonization Arbitration Law: A Discourse for Investor–State Arbitration in the ASEAN Economic Community

Abstract

The implementation of the ASEAN Economic Community (AEC) may increase trade and commercial activities in the number of intra-ASEAN, including investment disputes between investors and ASEAN Member States. In that regard, the ASEAN Comprehensive Investment Agreement (ACIA) provides aggrieved investors the option to refer their disputes to arbitration in resolving their disputes. Many foreign arbitrage decisions are found to be time-consuming when it comes to enforcing the decision and cases over the final and legal binding arbitrage decision being overturned by the court’s decision in Indonesia. Thus, the efficiency and effectiveness of the arbitration process are being negated. The ASEAN Comprehensive Investment Agreement (ACIA) that provides the legal basis for the AEC’s liberalized investment regime establishes an investor-state dispute resolution mechanism (ISDR mechanism).