Implication of Bilateral Investment Treaties on Sustainable Development: Indonesia Mining

Adinda Balqis Tegarmas G., Derry Krisna Susanto

2018

Abstract

This paper examines the role of political factors play in the investment location decisions of multinational enterprises. It has been found that foreign direct investors shy away from countries with excessive government spending, especially when this spending is directed towards the military. They also seem to have a slight preference for leftist executives and be negatively predisposed toward situations in which the ruling party has held power for prolonged periods of time. “Ceteris paribus”, more foreign direct investment (FDI) flows to countries that have presidential systems which mostly developing countries, established political parties and where the party of the executive controls all houses with law-making powers. The foreign investors who mostly liberal-minded are spoiled with the political economy system of developing countries which rather can be manipulated to fulfill their desire of protection and full access of the desired resources. However, after World War II, the political constellation has changed dramatically that caused an emergence of rising-new countries and forceful demand of developing countries to obtain equity in free market economy system through a modern mechanism known as bilateral investment treaty (BIT). A continuous changing dynamics in global political economy leads the mankind to the era where the scarcity of natural resources almost become a realization. One way to sort of postpone the scarcity is by implementing so called sustainable development in business activities especially in mining investment sector. This research aims  finding BIT advantages on Indonesia’s mining to  implement sustainable objectives.

Paper Citation

in Harvard Style

G. A. and Susanto D. (2018). Implication of Bilateral Investment Treaties on Sustainable Development: Indonesia Mining. In Proceedings of Airlangga Conference on International Relations - Volume 1: ACIR, ISBN 978-989-758-493-0, pages 79-85. DOI: 10.5220/0010273400002309

in Bibtex Style

@conference{acir18,
author={Adinda Balqis Tegarmas G. and Derry Krisna Susanto},
title={Implication of Bilateral Investment Treaties on Sustainable Development: Indonesia Mining},
booktitle={Proceedings of Airlangga Conference on International Relations - Volume 1: ACIR,},
year={2018},
pages={79-85},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0010273400002309},
isbn={978-989-758-493-0},
}

in EndNote Style

TY - CONF

JO - Proceedings of Airlangga Conference on International Relations - Volume 1: ACIR,
TI - Implication of Bilateral Investment Treaties on Sustainable Development: Indonesia Mining
SN - 978-989-758-493-0
AU - G. A.
AU - Susanto D.
PY - 2018
SP - 79
EP - 85
DO - 10.5220/0010273400002309