WWLegal.com :: Singapore and Indonesia to sign Investment Guarantee Agreement

Singapore and Indonesia to sign Investment Guarantee Agreement
Posted on Wednesday, February 16, 2005 - 12:26 PM

According to a Singapore Government press release, Indonesia and Singapore will sign an investment guarantee agreement on 16 February 2005.
The Press Release states that:

This agreement demonstrates the strong bilateral relations between the two countries. It also augurs well for our business communities, as it will lay a solid framework where investors from Indonesia and Singapore can benefit from greater confidence in clearly set out investment norms and protection when investing in the other country. The key provisions of the agreement include:

a. most favoured nation treatment to be accorded to investments;
b. freely convertible and transferable compensation in the event of expropriation and nationalisation; and
c. referral of investment disputes that cannot be settled to the International Centre for Settlement of Investment Disputes, established by the Convention on the Settlement of Investment Disputes between the States and Nationals of Other States.

The signatories to the agreement are Mr Hasan Wirajuda, Minister of Foreign Affairs from Indonesia, and Mr Lim Hng Kiang, Singapore’s Minister for Trade and Industry. The signing ceremony will be witnessed by key members of the business community and officials from Indonesia and Singapore.

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