Liberalisation Of The Investment Agreement Under The Asean Economic Community Of 2015 And Its Legal Implication For Indonesia.
INTERNATIONAL CONFERENCE ON TRADE, BUSINESS, ECONOMICS AND LAW | Kenneth Mould 1
2015
FLE
Learning
International Conference on
Business, Economics and Law
Trade,
Conference Proceedings
ICTBEL 2015 (Edinburgh)
15-17 June 2015
Edinburgh, United Kingdom
ICTBEL
Edinburgh
© 2015 The Author | ICTBEL © 2015 FLE Learning
ISBN 978-0-9930368-5-9 (Online)
FLE Learning
ICTBEL 2015 EDINBURGH | 2
International Conference on Trade, Business, Economics and Law
ICTBEL 2015 (Edinburgh) 15-17 June 2015
The Carlton Hotel, North Bridge, Edinburgh EH1 1SD United Kingdom T: (+44) 0131 472
3000 F: (+44) 0131 556 2691 W: www.pumahotels.co.uk
General Editor: Dr. Ramandeep Kaur Chhina
Associate Editor(s): Dr Avnita Lakhani, Dr Monika WIECZOREK-KOSMALA, Dr. Bashar
Malkawi, Dr. Indianna Minto-Coy, Dr. Jamil Ammar, Dr. Joanna Błach, Dr. Nitin Upadhyay,
Dr. Poomintr Sooksripaisarnkit, Dr. Rajesh Sharma Dr. Zhixiong Liao, Dr. Zinatul Zainol,
Miss. Kate Masih, Mrs. Andrea Bockley, Ms. Florence Simbiri-Jaoko, Ms. Mercy Khaute and
Prof. Tshepo Herbert Mongalo
Copyright © 2015 FLE Learning Ltd
All rights reserved. No part of this publication may be reproduced or transmitted in any form,
or by any means, or stored in any retrieval system of any nature without the prior permission
of the publishers.Permited fair dealing under the Copyright, Designs and Patents Act 1988, or
in accordance with the terms of a licence issued by the Copyright Licensing Agency in respect
of photocopying and/or reprographic reproduction is excepted. Any application for permission
for other use of copyright material including permission to reproduce extracts in other
published works must be made to the publishers and in the event of such permission being
granted full acknowledgement of author, publisher and source must be given.
Disclaimer
Whilst every effort has been made to ensure that the information contained in this publication
is correct, neither the editors and contributors nor FLE Learning accept any responsibility for
any errors or omissions, quality, accuracy and currency of the information, nor any
consequences that may result. FLE Learning takes no responsibility for the accuracy of URLs
of external websites given in this publication nor for the accuracy or relevance of their content.
The opinions, advices and information contained in this publication do not necessarily reflect
the views or policies of the FLE Learning.
Format for citing papers
Author surname, initial(s). (2014). Title of paper. In Proceedings of the Annual International
Conference on Law, Economics and Politics, (pp. xx-xx). London, September 1st – 3rd, 2014.
ICTBEL © 2015 FLE Learning Ltd
ISBN: 978-0-9930368-5-9 (Online)
These proceedings have been published by the FLE Learning Ltd trading as FLE Learning.
T: 0044 131 463 7007 F: 0044 131 608 0239 E: submit@flelearning.co.uk W: www.flelearning.co.uk
www.flelearning.co.uk
INTERNATIONAL CONFERENCE ON TRADE, BUSINESS, ECONOMICS AND LAW | 1
TABLE OF CONTENTS
THE TRUE NATURE OF THE ATHLETE’S CONTRACT ............................................. 3
Kenneth Mould......................................................................................................................... 3
THE FACTORS INFLUENCING ATTITUDE TOWARD PRECISE RICE
CULTIVATION OF FARMERS IN THE NORTHEAST REGION, THAILAND ........ 11
Ananya Soikum and Pensri Jaroenwanit .......................................................................... 11
FACTORS INFLUENCING CONSUMERS’ ATTITUDE TOWARD
ENVIRONMENTALLY-FRIENDLY FOOD PRODUCTS: NEW ENVIRONMENTAL
PARADIGM (NEP) SCALE APPLICATION .................................................................... 20
Pensri Jaroenwanit, Pornpirat Kantatasiri, and Rudolph Brown .................................... 20
LIBERALISATION OF THE INVESTMENT AGREEMENT UNDER THE ASEAN
ECONOMIC COMMUNITY OF 2015 AND ITS LEGAL IMPLICATION FOR
INDONESIA ........................................................................................................................... 30
An An Chandrawulan............................................................................................................ 30
AN OVERVIEW OF THE ASEAN TRADE AND INVESTMENT DISPUTES
SETTLEMENT MECHANISMS ......................................................................................... 40
Huala Adolf*........................................................................................................................... 40
CUSTOMER JOURNEY ON SOCIAL MEDIA SITES: A CASE STUDY OF SAUDI
CONSUMERS. ....................................................................................................................... 46
Nawt Almutairi and Prof. Richard Bennett ........................................................................ 46
HOW KRENG JAI VALUE INFLUENCE THAI AND EUROPEAN POSTPURCHASE INTENTION IN A SERVICE CONTEXT ................................................... 56
Arirat Chueabunkoet Noth, Pensri Jaroenwanit and Rudolph Henry Brown ............. 56
LOCAL PRODUCTS FESTIVAL TOURISM IN CROSS-BORDER AREAS: A
MARKET ASSESSMENT APPROACH ............................................................................ 65
Prof. Stella Kostopoulou and Nikos Koutsomarkos, Ph.D. Candidate (Co-Author) ....... 65
THE MONETARY POLICY TRANSMISSION MECHANISM AND POLICY
INSTRUMENTS: EMPIRICAL EVIDENCE .................................................................... 65
Prof. Mehmet Ivrendi ............................................................................................................ 65
THE DIALECTICS OF STAKEHOLDER ENGAGEMENT IN POST-APARTHEID
SOUTH AFRICA – THE CASE OF A MULTINATIONAL COMPANY AND ITS
HOST COMMUNITY ........................................................................................................... 66
© 2015 The Author | ICTBEL © 2015 FLE Learning
ICTBEL 2015 EDINBURGH | 2
Dr. Chukuakadibia Eresia-Eke ............................................................................................ 66
ESTIMATING THE LEVERAGE EFFECT OF STOCHASTIC VOLATILITY
BETWEEN CORN AND SOYBEAN .................................................................................. 67
Mr. Chung Chao-Wei ............................................................................................................ 67
JUMP PROCESS AND SPILLOVER EFFECT OF STOCHASTIC VOLATILITY
BETWEEN CORN AND SOYBEAN .................................................................................. 67
Mr. Chung Chao-Wei ............................................................................................................ 67
ANALYTICAL VALUE-AT-RISK IN THE ASYMMETRIC VOLATILITY
BETWEEN CORN AND SOYBEAN .................................................................................. 68
Mr. Chung Chao-Wei ............................................................................................................ 68
INFLUENCE OF INTERNET MARKETING ON CONSUMER BEHAVIOR ............. 68
Mr. Muazu Umar ................................................................................................................... 68
THE NATURE OF THE ATHLETE'S CONTRACT AND ITS ...................................... 69
CALENDAR ANOMALIES: THE CASE OF INDUSTRY INDEXES IN CHINESE
STOCK MARKET................................................................................................................. 69
Dr. Jie Zhang and Yufei Zhang ........................................................................................... 69
EFFECTS OF EXPORT DIVERSIFICATION ON FINANCIAL PERFORMANCE OF
TURKISH EXPORTERS...................................................................................................... 69
Mrs. Guldehen Adiguzel........................................................................................................ 69
LISTENER DELEGATES LIST .......................................................................................... 70
www.flelearning.co.uk
ICTBEL 2015 EDINBURGH | 30
LIBERALISATION OF THE INVESTMENT AGREEMENT UNDER
THE ASEAN ECONOMIC COMMUNITY OF 2015 AND ITS LEGAL
IMPLICATION FOR INDONESIA
An An Chandrawulan1
ABSTRACT
The ASEAN Comprehensive Investment Agreement (ACIA) entered into force on 29 March
2012. The aim of ACIA is to create a free and open investment regime to ensure that ASEAN
remains an attractive destination for both domestic investments and foreign direct investment.
This aim is in line with the goal of achieving an ASEAN Economic Community by 2015. The
ACIA is a binding legal document on investment in ASEAN. It provides ample benefits to
ASEAN investors under its four pillars of investment: Liberalisation, Protection, Promotion
and Facilitation of investment. One key implication of the binding instrument is that members
are obliged to implement it in their national law. This will of course depend to the fullest extent,
on the commitment or political will of the members to implement it in their national legislation.
This paper is going to analyse to the Indonesian practice in regard the realisation of its
commitment to investment liberalisation. This analysis cover the extent to which the
Indonesian Law on investment and related policy have been in line with the provisions of the
ACIA. This paper will take a particularly deep look at the Indonesian Law on Investment, the
Law No 25 of 2007. In addition, the paper will analyse government policy in regard to
implementing the Investment Law.
INTRODUCTION
The ASEAN Economic Community (AEC) Agreement will come into effect in December
2015. The AEC is expected to affect most economic concerns of the AEC member countries,
including in the sphere of investment. Besides investment, the AEC tries to liberalise trade in
goods, services and movement of persons. The instrument regulating investment liberalisation
in ASEAN is the ASEAN Comprehensive Investment Agreement (ACIA).
The legal issues surrounding the implementation of the AEC agreement are the main points
of examination in this paper. This paper looks at the implementation of the AEC agreement
particularly in Indonesia. As the country with largest territory, population and resources in
ASEAN, Indonesia is a more attractive destination for investment than other nine members.
The Indonesian main law regulating investment in Indonesia is Law No 25 of 2007.
This paper analyses Indonesian practice in the realisation of its commitment to investment
liberalisation. This analysis enquires into the extent to which the Indonesian laws on investment
and related policy are in line with the provisions of the ACIA. In addition, the paper will
analyse government’s implementation of the Investment Laws.
THE AEC AND THE PURPOSE OF THE ACIA 2015
Background
When ASEAN was established in 1967 it was initially set up to ease the political and security
tensions among countries in South-East Asia, most notably Indonesia, the Philippines,
Malaysia, Singapore, Thailand and Brunei Darussalam. It is interesting to note that the
evolution of the ASEAN as a regional political group then moved towards as mainly focusing
1
Faculty of Law, Universitas Padjadjaran, Bandung, Indonesia E:ananchandrawulan@gmail.com
www.flelearning.co.uk
INTERNATIONAL CONFERENCE ON TRADE, BUSINESS, ECONOMICS AND LAW | ABSTRACTS | 1
FLE Learning
Ltd
© 2015 The Author | ICTBEL © 2015 FLE Learning
Conference Division
T: 0044 131 463 7007 F: 0044 131 608 0239
E: submit@flelearning.co.uk W: www.flelearning.co.uk
2015
FLE
Learning
International Conference on
Business, Economics and Law
Trade,
Conference Proceedings
ICTBEL 2015 (Edinburgh)
15-17 June 2015
Edinburgh, United Kingdom
ICTBEL
Edinburgh
© 2015 The Author | ICTBEL © 2015 FLE Learning
ISBN 978-0-9930368-5-9 (Online)
FLE Learning
ICTBEL 2015 EDINBURGH | 2
International Conference on Trade, Business, Economics and Law
ICTBEL 2015 (Edinburgh) 15-17 June 2015
The Carlton Hotel, North Bridge, Edinburgh EH1 1SD United Kingdom T: (+44) 0131 472
3000 F: (+44) 0131 556 2691 W: www.pumahotels.co.uk
General Editor: Dr. Ramandeep Kaur Chhina
Associate Editor(s): Dr Avnita Lakhani, Dr Monika WIECZOREK-KOSMALA, Dr. Bashar
Malkawi, Dr. Indianna Minto-Coy, Dr. Jamil Ammar, Dr. Joanna Błach, Dr. Nitin Upadhyay,
Dr. Poomintr Sooksripaisarnkit, Dr. Rajesh Sharma Dr. Zhixiong Liao, Dr. Zinatul Zainol,
Miss. Kate Masih, Mrs. Andrea Bockley, Ms. Florence Simbiri-Jaoko, Ms. Mercy Khaute and
Prof. Tshepo Herbert Mongalo
Copyright © 2015 FLE Learning Ltd
All rights reserved. No part of this publication may be reproduced or transmitted in any form,
or by any means, or stored in any retrieval system of any nature without the prior permission
of the publishers.Permited fair dealing under the Copyright, Designs and Patents Act 1988, or
in accordance with the terms of a licence issued by the Copyright Licensing Agency in respect
of photocopying and/or reprographic reproduction is excepted. Any application for permission
for other use of copyright material including permission to reproduce extracts in other
published works must be made to the publishers and in the event of such permission being
granted full acknowledgement of author, publisher and source must be given.
Disclaimer
Whilst every effort has been made to ensure that the information contained in this publication
is correct, neither the editors and contributors nor FLE Learning accept any responsibility for
any errors or omissions, quality, accuracy and currency of the information, nor any
consequences that may result. FLE Learning takes no responsibility for the accuracy of URLs
of external websites given in this publication nor for the accuracy or relevance of their content.
The opinions, advices and information contained in this publication do not necessarily reflect
the views or policies of the FLE Learning.
Format for citing papers
Author surname, initial(s). (2014). Title of paper. In Proceedings of the Annual International
Conference on Law, Economics and Politics, (pp. xx-xx). London, September 1st – 3rd, 2014.
ICTBEL © 2015 FLE Learning Ltd
ISBN: 978-0-9930368-5-9 (Online)
These proceedings have been published by the FLE Learning Ltd trading as FLE Learning.
T: 0044 131 463 7007 F: 0044 131 608 0239 E: submit@flelearning.co.uk W: www.flelearning.co.uk
www.flelearning.co.uk
INTERNATIONAL CONFERENCE ON TRADE, BUSINESS, ECONOMICS AND LAW | 1
TABLE OF CONTENTS
THE TRUE NATURE OF THE ATHLETE’S CONTRACT ............................................. 3
Kenneth Mould......................................................................................................................... 3
THE FACTORS INFLUENCING ATTITUDE TOWARD PRECISE RICE
CULTIVATION OF FARMERS IN THE NORTHEAST REGION, THAILAND ........ 11
Ananya Soikum and Pensri Jaroenwanit .......................................................................... 11
FACTORS INFLUENCING CONSUMERS’ ATTITUDE TOWARD
ENVIRONMENTALLY-FRIENDLY FOOD PRODUCTS: NEW ENVIRONMENTAL
PARADIGM (NEP) SCALE APPLICATION .................................................................... 20
Pensri Jaroenwanit, Pornpirat Kantatasiri, and Rudolph Brown .................................... 20
LIBERALISATION OF THE INVESTMENT AGREEMENT UNDER THE ASEAN
ECONOMIC COMMUNITY OF 2015 AND ITS LEGAL IMPLICATION FOR
INDONESIA ........................................................................................................................... 30
An An Chandrawulan............................................................................................................ 30
AN OVERVIEW OF THE ASEAN TRADE AND INVESTMENT DISPUTES
SETTLEMENT MECHANISMS ......................................................................................... 40
Huala Adolf*........................................................................................................................... 40
CUSTOMER JOURNEY ON SOCIAL MEDIA SITES: A CASE STUDY OF SAUDI
CONSUMERS. ....................................................................................................................... 46
Nawt Almutairi and Prof. Richard Bennett ........................................................................ 46
HOW KRENG JAI VALUE INFLUENCE THAI AND EUROPEAN POSTPURCHASE INTENTION IN A SERVICE CONTEXT ................................................... 56
Arirat Chueabunkoet Noth, Pensri Jaroenwanit and Rudolph Henry Brown ............. 56
LOCAL PRODUCTS FESTIVAL TOURISM IN CROSS-BORDER AREAS: A
MARKET ASSESSMENT APPROACH ............................................................................ 65
Prof. Stella Kostopoulou and Nikos Koutsomarkos, Ph.D. Candidate (Co-Author) ....... 65
THE MONETARY POLICY TRANSMISSION MECHANISM AND POLICY
INSTRUMENTS: EMPIRICAL EVIDENCE .................................................................... 65
Prof. Mehmet Ivrendi ............................................................................................................ 65
THE DIALECTICS OF STAKEHOLDER ENGAGEMENT IN POST-APARTHEID
SOUTH AFRICA – THE CASE OF A MULTINATIONAL COMPANY AND ITS
HOST COMMUNITY ........................................................................................................... 66
© 2015 The Author | ICTBEL © 2015 FLE Learning
ICTBEL 2015 EDINBURGH | 2
Dr. Chukuakadibia Eresia-Eke ............................................................................................ 66
ESTIMATING THE LEVERAGE EFFECT OF STOCHASTIC VOLATILITY
BETWEEN CORN AND SOYBEAN .................................................................................. 67
Mr. Chung Chao-Wei ............................................................................................................ 67
JUMP PROCESS AND SPILLOVER EFFECT OF STOCHASTIC VOLATILITY
BETWEEN CORN AND SOYBEAN .................................................................................. 67
Mr. Chung Chao-Wei ............................................................................................................ 67
ANALYTICAL VALUE-AT-RISK IN THE ASYMMETRIC VOLATILITY
BETWEEN CORN AND SOYBEAN .................................................................................. 68
Mr. Chung Chao-Wei ............................................................................................................ 68
INFLUENCE OF INTERNET MARKETING ON CONSUMER BEHAVIOR ............. 68
Mr. Muazu Umar ................................................................................................................... 68
THE NATURE OF THE ATHLETE'S CONTRACT AND ITS ...................................... 69
CALENDAR ANOMALIES: THE CASE OF INDUSTRY INDEXES IN CHINESE
STOCK MARKET................................................................................................................. 69
Dr. Jie Zhang and Yufei Zhang ........................................................................................... 69
EFFECTS OF EXPORT DIVERSIFICATION ON FINANCIAL PERFORMANCE OF
TURKISH EXPORTERS...................................................................................................... 69
Mrs. Guldehen Adiguzel........................................................................................................ 69
LISTENER DELEGATES LIST .......................................................................................... 70
www.flelearning.co.uk
ICTBEL 2015 EDINBURGH | 30
LIBERALISATION OF THE INVESTMENT AGREEMENT UNDER
THE ASEAN ECONOMIC COMMUNITY OF 2015 AND ITS LEGAL
IMPLICATION FOR INDONESIA
An An Chandrawulan1
ABSTRACT
The ASEAN Comprehensive Investment Agreement (ACIA) entered into force on 29 March
2012. The aim of ACIA is to create a free and open investment regime to ensure that ASEAN
remains an attractive destination for both domestic investments and foreign direct investment.
This aim is in line with the goal of achieving an ASEAN Economic Community by 2015. The
ACIA is a binding legal document on investment in ASEAN. It provides ample benefits to
ASEAN investors under its four pillars of investment: Liberalisation, Protection, Promotion
and Facilitation of investment. One key implication of the binding instrument is that members
are obliged to implement it in their national law. This will of course depend to the fullest extent,
on the commitment or political will of the members to implement it in their national legislation.
This paper is going to analyse to the Indonesian practice in regard the realisation of its
commitment to investment liberalisation. This analysis cover the extent to which the
Indonesian Law on investment and related policy have been in line with the provisions of the
ACIA. This paper will take a particularly deep look at the Indonesian Law on Investment, the
Law No 25 of 2007. In addition, the paper will analyse government policy in regard to
implementing the Investment Law.
INTRODUCTION
The ASEAN Economic Community (AEC) Agreement will come into effect in December
2015. The AEC is expected to affect most economic concerns of the AEC member countries,
including in the sphere of investment. Besides investment, the AEC tries to liberalise trade in
goods, services and movement of persons. The instrument regulating investment liberalisation
in ASEAN is the ASEAN Comprehensive Investment Agreement (ACIA).
The legal issues surrounding the implementation of the AEC agreement are the main points
of examination in this paper. This paper looks at the implementation of the AEC agreement
particularly in Indonesia. As the country with largest territory, population and resources in
ASEAN, Indonesia is a more attractive destination for investment than other nine members.
The Indonesian main law regulating investment in Indonesia is Law No 25 of 2007.
This paper analyses Indonesian practice in the realisation of its commitment to investment
liberalisation. This analysis enquires into the extent to which the Indonesian laws on investment
and related policy are in line with the provisions of the ACIA. In addition, the paper will
analyse government’s implementation of the Investment Laws.
THE AEC AND THE PURPOSE OF THE ACIA 2015
Background
When ASEAN was established in 1967 it was initially set up to ease the political and security
tensions among countries in South-East Asia, most notably Indonesia, the Philippines,
Malaysia, Singapore, Thailand and Brunei Darussalam. It is interesting to note that the
evolution of the ASEAN as a regional political group then moved towards as mainly focusing
1
Faculty of Law, Universitas Padjadjaran, Bandung, Indonesia E:ananchandrawulan@gmail.com
www.flelearning.co.uk
INTERNATIONAL CONFERENCE ON TRADE, BUSINESS, ECONOMICS AND LAW | ABSTRACTS | 1
FLE Learning
Ltd
© 2015 The Author | ICTBEL © 2015 FLE Learning
Conference Division
T: 0044 131 463 7007 F: 0044 131 608 0239
E: submit@flelearning.co.uk W: www.flelearning.co.uk