PERLINDUNGAN INVESTOR ASING DARI RISIKO SENGKETA MELALUI ARBITRASE SEBAGAI FORUM PENYELESAIAN SENGKETA INVESTASI

In terms of investing in a country, one of the considerations of investors is related to the risk of disputes. This consideration is crucial, considering that the main goal of investors investing in a country is to make a profit. Based on these facts, a legal issue was found regarding what Indonesian legal instruments were formed to provide legal protection to foreign investors from the risk of disputes and how Arbitration as an Investment Dispute Resolution Forum provides legal protection to investors from the risk of disputes. The purpose of this research is to find out Indonesian legal instruments related to legal protection for foreign investors from the risk of disputes, and to find out the efficiency and effectiveness of arbitration as an investment dispute resolution forum in providing legal protection for foreign investors from the risk of disputes. This research uses normative juridical research methods. The conclusion of this study is that there are several juridical factors underlying the statement that arbitration arrangements in Indonesia have not been able to fully provide legal protection for foreign investors, including Indonesia is considered a country that is not friendly to foreign arbitral awards because it is considered easy to refuse the implementation of foreign arbitral awards with applying the principles of the State Act Doctrine which places State Owned Enterprise as a state that cannot be sued, the problem of choosing a forum due to arrangements that tend to favor one party, and there is a legal vacuum related to the time period for registering international arbitration. Arbitration in providing legal protection for foreign investors from the risk of foreign investment disputes in Indonesia by prioritizing the main matters in the form of the superiority of arbitration in the system, implementation, effectiveness and efficiency of the arbitration process, and the final arbitral award.