The People’s Voice

Abstract

Abstract How compliant are treaties that make up the investment law regime with the principles of economic democracy, sustainability, development, or the ‘establishment of a world order based on independence, eternal peace and social justice’, all of which are mentioned in the Constitution of Indonesia? While the Indonesian Constitutional Court has not had an opportunity to weigh in on the compatibility of investment law with the Indonesian Constitution, it has not been shy in thwarting plans intended to liberalize the economy, reinforcing commitments to economic democracy contained in the Constitution. The Court had an opportunity to weigh into the investment treaty debate by reviewing the requirements of Indonesian Treaty Law. It was common practice in Indonesian foreign relations law to have every international economic treaty signed and ratified by the President, without legislative scrutiny or consent. In their ruling, the Court stepped in to require the participation of the people’s representatives in ratifying trade and investment agreements. Such treaties had ‘a fundamental impact on the people’ that was ‘linked to the state’s financial burden’, the Court ruled, which engaged the constitutional interest of the legislative branch. While this outcome did not have the direct effect of impeding the executive’s investment treaty policy, legislative participation offers an opportunity for greater scrutiny of investment treaty commitments.