156/1999 Coll.
The COMMUNICATION FROM the
Ministry of Foreign Affairs
Ministry of Foreign Affairs says that the 17 November. September 1998 was in
Prague agreement signed between the Government of the United Kingdom and the Government of Indonesia
Republic on the promotion and protection of investments.
The agreement gave its assent, Parliament of the Czech Republic. The President of the
the Republic has ratified the agreement.
Agreement entered into force pursuant to article 13(2). 1 day 21.
June 1999.
The Czech version of the agreement shall be published at the same time. In the English version, which is
for its interpretation of the applicable, can be consulted at the Ministry of foreign
Affairs and the Ministry of finance.
The AGREEMENT
between the Government of the United Kingdom and the Government of the Republic of Indonesia on the promotion and
protection of investments
The Government of the United Kingdom and the Government of the Republic of Indonesia (hereinafter referred to as "the Contracting
the parties '),
Bearing in mind the friendly relations and economic cooperation, the existing
between these two countries and their people;
intending to create and maintain favourable conditions for investments by investors
one Contracting Party in the territory of the other Contracting Party on the basis of
sovereign equality and mutual benefit;
recognising that agreement on the promotion and protection of investment will contribute to stimulating
investment activities in both countries;
have agreed upon the following:
Article 1
The definition of the
For the purposes of this agreement:
1. the term "investment" includes every asset invested in
with regard to the activities of the investors of one Contracting Party
on the territory of the other Contracting Parties in accordance with the laws of the other Contracting
Parties and shall, in particular, but not limited to:
a) movable and immovable property and any other property rights,
such as mortgages, pledges, guarantees and similar rights;
(b)) the rights arising from the shares, bonds and any other form of
participation in companies or joint ventures on the territory of the other
the Contracting Parties;
(c) the claim or claims) cash to any performance having an economic
and financial value and associated with an investment;
(d)) intellectual property rights, technical procedures, goodwill and
know-how;
e) business concessions resulting from the law or from the contractual
arrangements relating to investment, including concessions for exploration, extraction,
the cultivation or use of natural resources.
Any change in the form in which the values are invested does not affect the
their character as investments.
2. the term "investor" includes having regard to both parties
and a natural person who is a national) citizenship of one of the Contracting Parties in
accordance with its laws and investing in the territory of the other party;
(b)) legal person incorporated or registered in accordance with the laws of
one of the parties having a registered office in the territory of that Contracting Party and
investing in the territory of the other Contracting Party.
3. the condition "without delay" is considered to be fulfilled if a transfer
carried out in such a period, which is normally required to perform the conversion by
international financial practices.
4. the term "territory" means:
and) in relation to the Czech Republic territory, over which the Czech Republic
It exercises sovereign rights and jurisdiction in accordance with international law.
(b)) in relation to the territory of the Republic of the Republic of Indonesia, as
defined in its laws.
Article 2
The promotion and protection of investments
1. Each Contracting Party shall encourage and create favourable conditions
for investors of the other Contracting Party, to invest in its territory, and
will admit such investments in accordance with its legal system.
2. Investments of investors of either Contracting Party will be for every
circumstances, provided the proper and fair treatment and shall enjoy the
appropriate protection and security in the territory of the other Contracting Party.
Article 3
The provisions on MFN clause
1. each Contracting Party shall in its territory for investments and returns
investors of the other Contracting Party treatment, which is the proper and fair
and no less favourable than that accorded to investments and returns of investors
of any third State.
2. each Contracting Party shall accord to investors of the other party within its territory
the parties, regarding the management, maintenance, use, recovery or disposal
with their investments, treatment which is the proper and equitable and not less
favourable than what any third State provides investors.
3. If a Contracting Party has provided special benefits to investors
any non-Member State on the basis of agreements creating the Customs Union,
Economic Union and Monetary Union or a similar institution, or on the basis of
the interim agreements leading to such unions or institutions and
any international agreements or arrangements relating to taxation,
the Contracting Party is not obliged to provide such benefits to investors
the other Contracting Party.
4. If the Government of the Republic of Indonesia in the future, after the entry of this agreement
into force shall provide the investment and the returns of investors of any third
State, or investors of any third State in respect of the management,
maintenance, use, recovery or disposal of their investments,
treatment to its own investors or investments, and
the proceeds of their own investors, shall notify this fact to the Government of the United
Republic and the same treatment will be provided to each other.
Article 4
The expropriation
1. No Contracting Party does not make any expropriation or
znárodňovací measure or any other measure limiting property
rights having a similar effect as the nationalization or expropriation against
investments of investors of the other party, except in cases where the
the following conditions are met:
and measures are taken to) for a public purpose and legal procedure;
(b)) the measures are not discriminatory;
(c)) the measures are accompanied by measures to pay immediate, appropriate, and
effective compensation. Such compensation will be equal to the fair market value of the
immediately before the measures restricting property rights become
publicly known. Such market value shall be determined in accordance with the
the internationally accepted practice and methods or when such market value
cannot be determined, a reasonable amount will correspond to which the
the parties mutually agree, and this amount will of the Contracting Parties
carrying out expropriation of freely transferable in freely convertible currency.
2. The legality of any expropriation and its progress, the amount and the method of
the payment of the refund shall be subject to the review carried out a legal procedure
judicial authority in accordance with the applicable law vyvlastňující
the Contracting Parties and with the principles laid down in this article.
3. The provisions of paragraph 1 of this article shall also apply in the event that
a Contracting Party expropriates the assets of a company incorporated or
established under the applicable law in any part of its territory, in which
investors of the other Contracting Party own shares.
Article 5
Damage compensation
1. Investors of one Contracting Party whose investments in the territory of the other
the Contracting Parties will suffer damages as a result of war, armed conflict,
a State of emergency, riot, insurrection, riot or other similar
the event will provide the other party with regard to compensation,
compensation, compensation or other settlement, a treatment no less favourable than that
than what will provide the contracting party to its own investors or
investors of any third State.
2. Notwithstanding paragraph 1 of this article the investors of one Contracting
the parties, who, in any of the events referred to in the preceding paragraph
they will suffer damage in the territory of the other party as a result of the seizure or
the destruction of their property, which was caused by the actions of the authorities
the other party shall have the right to submit a case to the Court for the purpose of
the achievement of restitution or fair and reasonable compensation for the damages.
Article 6
Conversions
1. the Contracting Parties shall ensure that payments could be linked with investments
transferred to. Transfers will be made in freely convertible currency without restriction
or delay. Such transfers shall include, but not limited to:
and) profit, interest, dividends and other current income;
(b)) the amounts needed
(i) for the purchase of raw materials or auxiliary materials, semi-finished products or finished
products, or
(ii) to replenish capital in order to ensure continuity
the investment;
c) additional amounts needed for the development of an investment;
(d) the amount of the repayment of loans);
e) license or other fees;
f) earnings of individuals;
g) proceeds from the sale or liquidation of the investment;
h) compensation for damages;
I) compensation for expropriation.
2. for the purposes of this agreement, will be used as the rate of conversion between the prevailing
the market rate to be used for common transactions at the date of transfer, if it is not
between the parties agreed upon a different date.
Article 7
Assignment of rights
1. If one of the parties or the agency designated Contracting
Party shall make payment to the investor on the basis of an insurance contract against the
non-commercial risks concluded in relation to any investment on
the territory of the other Contracting Party, the other Contracting Party shall recognize:
and the assignment of each law or) claim the investor or the Contracting Party
the agency empowered to a Contracting Party, whether a transfer has occurred in law or
on the basis of the legal arrangements; and
(b)) that the first Contracting Party or agency designated by a Contracting Party is of the
the title of the assignment of rights shall be entitled to exercise the rights and claims soar
such an investor.
2. The assignee's rights or claims shall not exceed the original rights or claims
the investor.
Article 8
Settlement of investment disputes between a Contracting Party and an investor
1. Any dispute which may arise between the Contracting Parties and
the investor of the other Contracting Party in connection with its investment in the territory of
This first party, will be resolved amicably through consultations and negotiations.
2. If the dispute cannot be resolved within six months from the date of
written notification, by which each party sought an amicable solution,
the dispute shall be submitted at the request of the investor, either:
and the competent court) of the party concerned;
(b) the International Centre) settlement of investment disputes (ICSID)
taking into account the applicable provisions of the Convention on the settlement of investment disputes
between States and nationals of other States, opened for signature in Washington, D.
(C) 18. March 1965; or
(c)) the arbitrator or to the International Court of arbitration set up by ad hoc,
established under the arbitration rules of the United Nations Commission
for international trade law (UNCITRAL). Parties in a dispute may
agree in writing to changes to these rules. The arbitration award will be
final and binding to both parties in a dispute.
Article 9
Settlement of disputes between Contracting Parties concerning the interpretation or application of the agreement
1. disputes between the Contracting Parties concerning the interpretation or application of this
the agreement will, if possible, resolved by consultation or negotiation.
2. If the dispute cannot be resolved within six months, at the request of
one of the parties submitted to the Court of arbitration in accordance with the
the provisions of this article.
3. the arbitral tribunal shall be established for each individual case in the following
way. Each Contracting Party shall appoint one member of the Arbitration Tribunal
within three months of receipt of the request for arbitration. These two members
then select a citizen of a third State, that will be with the consent of both
of the parties appointed the Chairman of the Arbitration Court (hereinafter referred to as
"the Chairman"). The Chairman shall be appointed within two months from the date of appointment
the other two members.
4. If, in one of the periods referred to in paragraph 3 of this article has not been
the necessary appointment may be requested the President of the International
the Court of Justice to make the appointment. If the President of the citizen of any
the Contracting Parties, or for any other reason unable to perform the operation, the
the appointment of the Vice-President asked. If it is also Vice-Chair of the citizen
some Contracting Parties to enforce this Act or not, will be on the implementation of
the appointment of a senior member of the requested the International Court of Justice,
that is not a citizen of any of the Contracting Parties.
5. the Arbitration Tribunal shall adopt its decisions by a majority vote. Such
the decision is binding. Each Contracting Party shall pay the costs of their
arbitrator and its participation in the arbitration proceedings; the costs of the Chairman and other
the expenses will be borne by the parties equally. Judge
However, the Court may, in its decision direct that one of the two Contracting
the Parties shall bear the greater part of the cost, and this finding is binding for both
the Contracting Parties. The arbitral tribunal shall determine its own rules rules.
Article 10
The applicability of this agreement
This agreement shall apply to investments made by investors of the Czech
Republic on the territory of the Republic of Indonesia admitted in accordance with the law
No 1 of 1967 concerning foreign investments, and with any law,
It supplements or replaces, and on future investments made
investors in the territory of the Republic of the United States and also on the
Indonesian investments existing on the territory of the Czech Republic in accordance with the
laws relating to investments which are in force on the date of entry
This agreement enters into force.
Article 11
Application of other provisions
If the provisions of law of either Contracting Party or obligations under
international law existing at present or occurring later between
the Contracting Parties to this agreement contain a general outside or special
the adjustment providing the investments of investors of the other Contracting Party treatment
more favourable than is provided by this agreement, such a system will, in
the extent to which it is more favourable, prevail over this agreement.
Article 12
Consultation and modifications
1. each Contracting Party may request consultation concerning the
any matter related to this agreement. The other Contracting Party
shall deliver its positive attitude to this proposal and will provide a suitable opportunity
for such consultations.
2. this agreement may be amended, at any time it is deemed necessary,
by mutual consent.
Article 13
Entry into force, duration and termination
1. this Agreement shall enter into force on the day of the later notification of any
the Contracting Parties of compliance with their national ratification procedures.
2. This agreement shall remain in force for a period of ten years, and then her
force will continue for a further 10-year periods, and so on, until
one of the Contracting Parties denounces it in writing one year before its
the end of the.
3. For investments made prior to the date of termination of this agreement
remain the provisions of articles 1 to 12 of this agreement, effective for a period of ten
years from the date of termination of this agreement.
In witness whereof the undersigned, duly authorised thereto, have signed this agreement.
Given in duplicate in Prague on 17. September 1998 in the Czech,
the Indonesian and English. All texts are equally authentic. In the case of
any conflict in the interpretation of the English version is decisive.
For the Government of the United States:
Mgr. Ivo Svoboda in r.
the Minister of finance
For the Government of the Republic of Indonesia:
Leonard r. Tobing
Ambassador Extraordinary and Plenipotentiary
