Selanjutnya

Agre ement between t he Republic of Indone s i a and the
Kingdom of Belgium on the encouragment and reciprocal
protection of investments
The Republic of Indonesia.
a nd
The Kin3dom of Belgium
Desiring to reinforce economi c co-opera tion
between both States, and to intensify co-operation
between private enterprises, in order to s t imulate
economic initia tives .
With the purpose of creating favour able
conditions fo r investments by n a tional s or legal persons
of either State in the territory of the other Sta te.
\ Conscious of the contribution which can be
made ｾ＠
this purpose by the concl usion of an agreement
concer rling t he enco uragment and reciprocal protection
of inves tments.
'
Have agreed as f ollows :
ARTICLE 1

1. Each Contracting Party shall in its
territory promote as f ar as possible the inves:bment
of capita l by nationals 6r l egal pe rsons of the other
Cont racting Party a nd ｡､ｾ
ｩｴ＠
such investment in
accordance with i ts legisla tion and a dministrative
pra ctice. It shall in any case accord such investments
fair and equitable trea tment.

./

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c

2 . I nvestmen ts made i n accordance vJ i t h the l aw s
and regula tions of e ither Con tra cting Par ty with i n the
area of applicati on of t ha t Party ' s legal system by
nationals or l egal persons of the other Contrac ting Party ,
sha ll enjoy the full protection of the present Agreemen t .
To t he extent tha t an admission procedure is required for
making an inve s t ment , s u ch an i nvestment sha ll en joy t bi s
protection as from the date of t he gr anting of the admiss ion .

3 . The protection guaranteed by paragraphs 1 and
2 of t h i s Article shall a t le as t be equal to tha t enjoyed
by t h e nationals of any thi rd Sta te and may i n n o case be
l ess f avourabl e t han tha t recognised by inte r national l aw .

ARTICLE 2
1 . Ea ch Contra cting Party shall admi t i n its

territory investment s by nationals or legal persons of the

other Contracting Party in ac cordan ce with its l egi s l ation
a nd sha ll encour age such inve s t ments .

2 . I n particular , each Contracting Party shall
authorize t he conclusion and execution of licen cing
contr a cts and of contr a cts relati ng to cofilfilercia l ,
admini strative or tec hn ica l ass i s tance , i n s o far those
acti vities are connected within i nvestments as mentione d
in paragr aph 1 .

3 . To the i nvestmen t s of nationals or legal .

./ .

- 3 -

persons of either Contracting Party in t he territor y of
the other Cont r a cting Par ty shal l be a ccor ded by such
other Party , a treatment no less favourable t han that
which it a ccords in its territory to any simi lar i nves tment.

owned by its own na tional s or l egal per sons or by 'national s
or l egal per son s of third Stat es with due regard to the
stipulations contained in the Protocol attached to the
present Agreement .
ARTICLE 3
The term " inve s tments" shall compri s e every
di r ect or indirect contribution of capital and any other
kind of assets , invsted or r einvest ed in enterprises
in t he f iel d of agriculture, i ndustry , mining, forestry ,
communic a tions and t ourism.
The fol l owing shall more particul arl y, t ho ugh
not exclusively , be considered a s investments within the
meaning of the present Agreement :
a . Movable and i mmovable property as well as any other
r i ghts in rem such as mortgag es , pledges , usufructs
and similar rights ;
b . Shares or other t ypes of holding , maj ority or minority ;
c . Debts a nd rights to any performance having an economi c
va lue;
d . Copyrights , marks, patents , technical proces ses ,

trade- names , trade marks and goodwill ;
e . Conces s ions under publ ic l aw, including concessions
to search f or , extra ction or exploit natural resourc es .
ARTICLE 4
Ea ch Contra cting Party r ecognizes , as r egards

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- 4 the investments or goods , r i ghts and interests, connected
with such investments, situated in its territory which
belong to na tionals or legal persons of the other
Contra cting Party, the principle of the freedom of transfer,
in favour of such national or legal persons or their
beneficiaries, of:
- the nett profits, interests, dividends, royalties ,
depreciation of capital assets and any current income,
accruing from investments activities to nationals or
le gal persons of the other Contracting Party;

- the proceeds of the total or partial liquidation of any
investment, including possible increases in or
addditions to these investments, made by na tionals or
legal persons of the other Contra cting Party;
- an appropriate portion of the earning of nati onals or
legal persons of a Contra cting Party who are authorized
to work in the territory of the other Contracting Party;
- funds in repayments of loans which the Contracting Parties
have recognized as investments, to the country of
residence of these nationals or legal persons and in the
currency t hereof.
Each Contracting Party shall issue the
authorisations required to ensure that the transfer referred
to in the preceding paragraph of this Article can be
effected witho ut undue delay and any fees or charges other
than the usual bank charges.
This treatment may not be les s favourable than
that a ccorded to the nationals or legal persons of a third
State who are in a similar situation.

./ .

- 5 ARTICLE 5
The na tionals or legal persons of one
Cont racting Party may not be deprived, either directly
or indirectly, of the property or enjoyment of their
investments or goods, rights and interests connected
with such investments, situated in the territory of the
other Cont r a cting Party, unless the following conditions
are complied 1with :
a . the measures are t aken in the public interest and
under d ue process of law in a ccor dance with
internati onal l aw ;
h. the measures a r e neither discriminatory nor contrary
to a specific engag ement;
c. the measures are a ccompanied by provisions for the
pa yment of just compensation.
The amount of such compensation shall
repr esent the a ctual value of the affected goods on the
date on which t h e measure was t aken, It shall be paid

to the person entitled thereto and shall be freely
transferable, without undue delay.
The nationa ls or l ega l persons of either
Contra cting Party shall be accorded, in every case, in
the territory of the other Contra cting Party, a treatment
no less favourable than that enjoyed by the n a tionals
of any third State and in no ca se l ess fav ourable than
tha t r ecognized by international l aw .

ARTICLE 6
Na tionals or l egal p ersons of eit her

./.

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Contracting Party who suffer losses in relation to appr oved
investments owing to revolts, riots , armed conflicts or
revolutions , in the territory of the other Contracting
Party, shall be accorded by this Party , treatment no l ess

favour able than t hat accorded to the nat ionals or legal
persons of the latter Party or of any ｴｾｩｲ､
＾ ｓｴ｡･Ｌ＠
as regards
restitutions, indemnifica tions, compensation or other
similar valua ble considera tion.
Such payments shall be freely transferable
ARTICLE 7
1. The transfers referred
6 shall be effected at the rates
on the date of transfer pursuant
in force for the various clas s es

to
of
to
of

in Artic le s 4, 5 a nd
exchange applicable

the exchange regulations
t ransacti ons .

2 . These rates shall in no case be l ess favourable
than those accorded to the na tionals or legal persons of
third countries , in particular under specific, undertakings
laid down in agreements or arrangements, concluded in the
matter of protection of investments .

ARTICLE 8
Where a matter is governed by both the pre sent
Agreement and another interna tional Agreement binding on
the Contracting Parttes, nothing in t h i s Agreement shall
prevent a national or a legal person of one Contracting
Party from b enefiting by the provisions most favourable
to him.

./.

- 7 ARTICLE 9

The protection accorded to investors by the
provisions of the present Agreement shall apply:
a. in t h e territory of the Republic of Indonesia only
to investments which have been approved by the
Government of the Republic of Indonesia pursuant
to the stipulations contained in the Foreign
Investment law No . l of 1967 or other relevant l aws
and regula tions of the Republic of Indonesia;
·b . in the territory of the Ki ngdom of Belgium only to
investments which have been made consistent with
the relevant laws and regul ations of the Kingdom of
Belgium.
ARTICLE 10
Each Contracting Party hereby irrevocably and
anticipatory gives i ts consent to submit to c onciliation
and arbitration any di spute r elating to a measure
contrary to this Agreement , pursuant to the Convention
of Washington of 18 March 1965 , at the init iative of a
national or legal person of the other Contracting Party,
who consi ders himself t o have been ef fected by such a
measure .
This consent implies renunciation of the
requirement that the internal administrative or judicial
resorts should be exhausted .
ARTICLE 11
In the event of a dispute arising between the
Contra cting Parties as regards the interpretation or

./ .

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implementa tion of this Agreement , and if such dispute
cannot be sati sfactorily settled through the dipl oma tic
channels within a s ix mom.ths period , it shall be
submitted upon the reque st of either Cont r a cting Party
to an a rbitral tribunal composed of three members.
Each Party shall appoint one arbitra tor. The
two arbitra tors thus appointed shall appoint a t h ird
a rbitrato r who i s not a n a tional of either Contra cting
Party.
If one of the Part ies f a ils t o appoint its
arbitra tor a nd has not pro ceeeded to do so with i n two
the other Party, the
months after an invita t i on ｦｾ ｯｭ＠
arbitrato r shall be a ppointed , a t the request of the
l atte r Party , by the President or Vice President of
the I n ternational Cour t of Justice.
If within two month s following their appointment
the two a rbitrators are unabl e to reach agreement on
the.ch oic e of the t hi rd arbi trator, the latter shall be
appo inted a t the req ues t of either Party, by the
President or Vice President of the International Court
of Justi ce .
The Trib unal shall take its decis ions in
confmrmity with the pri n cipl es of l aw . Before render ing
its de cis ion, it may at any stage of the proceedings ,
propose to the Parties that the dispute shoul d be settl ed
amicabl y .
I f the Parties reach agreement , the Tribuna l
shall decide ex aequo et bono .

./ .

- 9 Unless the Parties decide otherwise, the Tribunal
shall determine its own procedure .
The decisions of the Tribunal, reached by a
majority of arbitra tors, shall be binding for the Parties.
ARTICLE 12
1. The present Agreement shall enter into force
on the day the two Contra cting Parties notify each pther
by diploma tic no t es tha t t heir constitutional requirements
for the entering into force of the Agreement have been
fulfi l led, and shall remain binding for a period of 15
y ears .
shall
2 . Unless either of the Contra cting ｾ｡ｲｴｩ･ｳ＠
have given notice of termination 12 months before the
expiry of the current period, the validity of the present
Agreement shall be deemed to have been tacitly ext ended
for a further term of 15 years.
ARTICLE 13
In case of ter mina tion of the present Agreement
the provisions thereof shall continue t o be effective for
a period of v alidity of contracts concluded between the
Contracting Party and the investor of the other Contracting
Party prior to the notifica tion of termina tion of the
present Agreement.

. /.

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ARTICLE 14
The Contracting Parties will apply
provisionally the present Agreement as from the date
of its signature.

IN WITNESS WHEREOF, the undersigned
Representatives, duly authorized thereto , have signed
the pre s ent Agreement .
DONE AT DJAKARTA in duplicate, in the
English language ;

the fifteenth day of January 1970.

FOR THE GOVERNMENT OF THE
REPUB\ Ic OF INDONESIA

Signed

FOR THE GOVERNMENT OF THE
KINGDOM OF BELGIUM
Signed

P R 0 T 0 C 0 L

At the time of s i gning the Agreement between
the Government of the Republic of I ndonesi a and the
Government of the Kingdom of Belgium concerning the
Encouragement and the Re ciprocal Protection of
Investment s, the unders i gned Pleni potenti aries have
i n ad dition agreed on the following understanding
which shall be regarded as an i ntegral part of the
said Agreement:
Re

Article 2 paragr a ph 3.

For the purpos e of pretecting the I ndonesian
nat i onal e conomy, tbe Government of the Republic of
I ndonesia may grant some fa ciliti es to I ndone s ian
concerns which· do not f ully apply to Be l gi an conc erns,
without pre judice to the principle tha t Bel gi an
investment shall be accorded a trea tment no l ess
favourable t han tha t which i s a c corded to na tiona ls
or l egal persons of thi rd Sta tes .
Done .at Dj akarta on J anuary 15, 1970.

For the Government of
the ReI\ublic of Indone si a
Signed

For the Government of
the Ki ngd om of Belgium .
Signed