Jakarta, The Indonesia Post – The Government of Indonesia and the Government of Switzerland signed an Investment Promotion and Protection Agreement (P4M) or a Bilateral Investment Agreement (BIT) to provide legal protection and business certainty.
The signing of the P4M was carried out by the Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia and Federal Councilor Guy Parmelin, at the House of Switzerland, Davos, Switzerland, Tuesday (24/5/2022), on the sidelines of a series of World Economic Forum (WEF) activities. Annual Meeting 2022.
In a written statement in Jakarta, Wednesday, Bahlil hoped the agreement could attract more investment from Switzerland to potential and priority sectors in Indonesia.
“We hope that this collaboration can have an impact on increasing Indonesia’s competitiveness in attracting investment from Switzerland, as well as opening up opportunities for national businesses to invest in Switzerland,” he said.
This agreement was successfully agreed after completing seven rounds of negotiations that began in 2018.
This agreement was made in the context of economic cooperation, especially investment between the two countries by providing legal protection and business certainty for both Swiss investors in Indonesia and Indonesian business actors who wish to invest in Switzerland.
On this occasion, Federal Councilor Guy Parmelin expressed his appreciation for the implementation of this bilateral investment agreement.
“We hope that this cooperation can be well established and produce a positive impact for both parties,” said Guy.
The scope of P4M RI with Switzerland, among others, applies to investment both in the territory of Indonesia and Switzerland; does not apply to claims or disputes that arose before P4M took effect and does not apply to government procurement, subsidies or grants provided by the state.
P4M is expected to provide benefits for investors from both countries, including guarantees of non-discriminatory treatment, not expropriation, freedom to transfer/repatriate, options for dispute resolution through international arbitration, and emphasis on not investing in unlawful activities, especially corruption.
This P4M will replace the previous P4M which was signed in 1974 and ended in 2016.
The P4M will also complement the Indonesia-European Free Trade Association (EFTA) CEPA agreement signed in 2018 in which Indonesia and Switzerland are parties to the agreement.
Other ASEAN member countries that already have P4M with Switzerland are Vietnam, Thailand, Malaysia, and Singapore.
Based on the records of the Ministry of Investment/BKPM, Switzerland managed to rank in the 10th country of origin of the highest investment in Indonesia in 2021 with investment realization reaching US$599.8 million and 281 projects. (mhn/bbs)
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