JURIDICAL ANALYTIC OF INTERNATIONAL INVESTMENT DISPUTE RESOLUTION THROUGH INTERNATIONAL CENTRE OF THE SETTLEMENT OF INVESTMENT DISPUTE (ICSID) ARBITRATION (CASE STUDY OF CHURCHILL MINING PLC AND PLANET MINING PTY LTD, V REPUBLIC OF INDONESIA) (S002594)

Article 25 of the convention regulated the jurisdiction of international Centre for the Settlement of investment Dispute (ICSID). The jurisdiction of the Centre is to settle a dispute arising directly out of investment, between contracting states and national of another contracting states, which the parties consent in writing and cannot withdraw unilaterally. A dispute arising directly out of investment the problems on this research are the rules and jurisdiction of ICSID Convention, and the mechanism resolving disputes over Churchill Mining Plc and Planet Mining Ltd Pty v republic of Indonesia.

This study aims to analyze the jurisdictional rules of ICSID and how the dispute resolution mechanism of Churchill Mining plc and Planet Mining Pty Ltd against Indonesia on ICSID.

This research used normative legal research conducted by collecting legal materials. The collection of legal materials is carried out using the literature study method by collecting legal materials and information in primary, secondary, and tertiary legal materials.

ICSID has jurisdiction to handle disputes between the Indonesian government and Churchill Mining plc because Churchill Mining is 1) foreign investors who invest in Indonesia through PT. ICD and entered into an agreement with a local Indonesian investor who also bears the loss for the revocation of the IUP of a subsidiary of PT. Ridlatama; 2) Indonesia is an ICSID member country ; and 3) The Bilateral Investment Treaty can be a reference for the existence of a clause in the form of a pactum de compromittendo that Indonesia has agreed in writing to bring the settlement of disputes in its country to ICSID.

The central government and local governments are expected to be more careful in monitoring and granting development business permits to investors before investing in an environment, including the validity and authenticity of licensing documents. Therefore, parties do not look for loopholes to violate existing regulations