Mei 26, 2024 – Indonesia and Singapore have sustained strong bilateral economic connections throughout the disruptions caused by the Covid-19 pandemic. Even amidst these challenges, Indonesia remained within Singapore’s top ten trading partners in 2020, with bilateral trade reaching SG$ 48.8 billion. Moreover, Singapore maintained its position as Indonesia’s primary source of foreign direct investment, with total investments amounting to US$ 9.8 billion in the same year.
The New BIT outlines various requirements that investors from both countries must fulfill to qualify for protection, as well as exceptions that may exclude certain investors from such benefits. This reflects a common trend observed in modern BITs. Investors meeting these criteria will be eligible for specific protections and procedural safeguards. The New BIT will grant investors from both countries the following key areas of protection below:
- Most-Favored Nation (MFN) status
Non-discriminatory treatment compared to other foreign investors and their investments.
- Fair and Equitable Treatment (FET)
Fair and equitable treatment, and full protection and security, based on customary international law
- National Treatment
Non-discriminatory treatment compared to local investors and their investments in most sectors.
- Protection from illegal expropriation or nationalization.
- Compensation for losses arising from war, armed conflict and civil strife.
- Right for Singapore and Indonesia investors to submit dispute claims on behalf of their enterprises that are established in the other country.
- Freedom to transfer capital and returns without delay into and out of its territory.
- Access to international arbitration for investment disputes.
The entry into force of the New BIT provides greater clarity in the types of protection provided to investors, as well as the mechanism for solving disputes. Investors should seek legal advice to check whether and how this new BIT is applicable to their investments.
Sunggong Logistics is committed to actively participating in the bilateral relationship between Singapore and Indonesia as outlined in the New BIT. Therefore, Sunggong Logistics comprehensively provides optimal freight services to and from Singapore.
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