Communication from the Ministry of Foreign Affairs No. 156 / 1999 Coll.
Communication from the Ministry of Foreign Affairs on the negotiation of the Agreement between the Government of the Czech Republic and the Government of the Republic of Indonesia on the promotion and protection of investment
Valid
Effective from 21.06.1999
Text versions:
21.07.1999
156
COMMUNICATION
Ministry of Foreign Affairs
The Ministry of Foreign Affairs states that on 17 September 1998 the Agreement between the Government of the Czech Republic and the Government of the Republic of Indonesia on the promotion and protection of investment was signed in Prague.
The Parliament of the Czech Republic has given its consent to the Agreement. The President of the Republic has ratified the Agreement.
The Agreement entered into force on 21 June 1999 pursuant to Article 13 (1) thereof.
The Czech version of the Agreement is hereby published at the same time. The English version, which is decisive for its interpretation, can be consulted by the Ministry of Foreign Affairs and the Ministry of Finance.
AGREEMENT
between the Government of the Czech Republic and the Government of the Republic of Indonesia on the promotion and protection of investment
The Government of the Czech Republic and the Government of the Republic of Indonesia (hereinafter referred to as the "Contracting Parties'),
bearing in mind the friendly relations and economic cooperation existing between the two countries and their people;
to establish and maintain favourable conditions for investment by investors of one Contracting Party in the territory of the other Contracting Party on the basis of sovereign equality and mutual benefit;
recognising that the Investment Support and Protection Agreement will contribute to stimulating investment activities in both countries;
agree on the following:
Definitions
For the purposes of this Agreement:
1. The term "investment" shall include any asset value invested in connection with the economic activities of investors of one Contracting Party in the territory of the other Contracting Party in accordance with the law of the other Contracting Party and shall include in particular, but not exclusively:
(a) movable and immovable property, as well as any other property rights such as mortgages, mortgages, guarantees and similar rights;
(b) rights arising from the holding of shares, bonds and any other form of participation in companies or joint ventures in the territory of the other Contracting Party;
(c) cash claims or claims on any performance of economic and financial value associated with the investment;
(d) intellectual property rights, technical procedures, goodwill and know-how;
(e) business concessions resulting from law or contractual arrangements relating to an investment, including concessions for exploration, extraction, cultivation or use of natural resources.
Any change in the form in which values are invested shall not affect their nature as investments.
2. The term "investor" shall include, in respect of both Contracting Parties:
(a) a natural person having citizenship of one of the Contracting Parties in accordance with its laws and investing in the territory of the other Contracting Party;
(b) a legal person established or registered in accordance with the laws of one of the Contracting Parties having its registered office in the territory of that Contracting Party and investing in the territory of the other Contracting Party.
(3) The condition "without delay" shall be deemed to have been fulfilled if the transfer is carried out within such time limit as is normally necessary to carry out the transfer in accordance with international financial practice.
4. The term "territory" means:
(a) In respect of the Czech Republic, the territory over which the Czech Republic exercises sovereign rights and jurisdiction in accordance with international law.
(b) In respect of the Republic of Indonesia, as defined in its laws.
Aid and investment protection
1. Each Contracting Party shall promote and create favourable conditions for investors of the other Contracting Party to invest in its territory and shall recognise such investments in accordance with its own law.
2. Investment by investors in any of the Contracting Parties shall, in all circumstances, be granted due and fair treatment and shall enjoy adequate protection and security in the territory of the other Contracting Party.
Provisions on the most favourable clause
1. Each Contracting Party shall grant on its territory to the investors' investments and returns of the other Contracting Party treatment which is proper and fair and is no less favourable than that accorded to the investors of any third State.
2. Each Contracting Party shall, on its territory, grant to investors of the other Contracting Party treatment which is fair and fair and not less favourable than that accorded to investors of any third State as regards the management, maintenance, use, use or disposal of their investment.
3. Where a Contracting Party has granted special advantages to investors of any third State on the basis of agreements forming a customs union, economic union, monetary union or similar institution or on the basis of interim agreements leading to such Union or institutions and any international agreements or arrangements relating to taxation, that Contracting Party shall not be obliged to grant such advantages to investors of the other Contracting Party.
4. If, after the entry into force of this Agreement, the Government of the Republic of Indonesia grants to investors of any third State, or to investors of any third State, in respect of the management, maintenance, use, use or disposal of their investment, treatment which it provides to its own investors or to investments and the returns of its own investors, it shall notify the Government of the Czech Republic of this fact and shall be treated equally.
Expropriation
1. No Contracting Party shall take any expropriation or nationalisation measure or any other measure restricting property rights having a similar effect to that of nationalisation or expropriation against investors of the other Contracting Party, except where the following conditions are met:
(a) the measures are taken for public purposes and through legal procedure;
(b) the measures are not discriminatory;
(c) the measures are accompanied by measures to pay immediate, proportionate and effective compensation. Such compensation will be equal to fair market value immediately before the measures restricting property rights have become publicly known. Such market value shall be determined in accordance with internationally accepted practice and methods or, where such market value cannot be determined, shall correspond to a reasonable amount to which the Contracting Parties agree and shall be freely transferable in freely convertible currency by the expropriating Party.
2. The lawfulness of any expropriation and its procedure, the amount and the method of payment of the refund shall be subject to review by the legal procedure of the judicial authority in accordance with the applicable law expropriating the parties and the principles set out in this Article.
3. The provisions of paragraph 1 of this Article shall also apply where a Contracting Party removes the assets of a company registered or constituted under the laws in force in any part of its territory in which the investors of the other Contracting Party own shares.
Compensation
(1) Investors of one Contracting Party whose investment in the territory of the other Contracting Party will suffer damage as a result of war, armed conflict, exceptional situation, riot, insurrection, mutiny or other similar events shall be treated no less favourable than that provided by that Contracting Party to its own investors or investors of any third State.
2. Notwithstanding paragraph 1 of this Article, investors of one Contracting Party who, in any of the events referred to in the preceding paragraph, suffer damage in the territory of the other Contracting Party as a result of the seizure or destruction of their property caused by actions by the authorities of the other Contracting Party shall have the right to bring a case before a court in order to obtain restitution or fair and reasonable compensation for damage.
Transfers
1. The Contracting Parties shall ensure that payments related to investments can be transferred. Transfers shall be made in freely convertible currency without restriction or delay. Such transfers shall include, in particular, but not exclusively:
(a) profits, interest, dividends and other current income;
(b) the amounts required
(i) the purchase of raw materials or auxiliary materials, semi-finished products or finished products; or
(ii) to supplement capital injections to ensure the duration of the investment;
(c) the additional amounts needed to develop the investment;
(d) the amounts to be recovered;
(e) licensing or other charges;
(f) earnings of natural persons;
(g) proceeds from the sale or liquidation of the investment;
(h) compensation for damage;
(i) compensation for expropriation.
2. For the purposes of this Agreement, the prevailing market rate applicable to current transactions at the date of transfer shall be used as a conversion rate unless another date is agreed between the Parties.
Transfer of rights
1. Where one of the Contracting Parties or the Agency authorised by the Contracting Party makes a payment to the investor under an insurance contract against non-commercial risks it has concluded in relation to any investment in the territory of the other Contracting Party, the other Contracting Party shall recognise:
(a) the assignment of any right or claim by an investor to a Contracting Party or to an agency authorised by a Contracting Party, whether by law or by legal arrangement; and
(b) that the first Contracting Party or the Agency authorised by the Contracting Party is entitled to exercise the rights and exercise the rights of such an investor by way of transfer.
2. The transferred rights or rights shall not exceed the original rights or rights of the investor.
Settlement of investment disputes between a Party and an investor
1. Any dispute which may arise between a Contracting Party and an investor of the other Contracting Party in connection with its investment in the territory of that first Contracting Party shall be dealt with amicably by consultations and negotiations.
2. If such a dispute cannot be resolved within six months of the date of the written notification to which either party has requested an amicable solution, the dispute shall be submitted at the request of the investor concerned either:
(a) the competent court of the Contracting Party concerned;
(b) the International Investment Dispute Settlement Centre (ICSID), having regard to the applicable provisions of the Investment Dispute Settlement Convention between States and citizens of other States, open for signature in Washington, D. C. 18 March 1965;
or
(c) an arbitrator or an international arbitration panel set up on an ad hoc basis, established under the arbitration rules of the United Nations International Trade Law Commission (UNCITRAL). The Parties in the dispute may agree in writing to amend these rules. The arbitration panel shall be final and binding on both parties in the dispute.
Dispute settlement between Contracting Parties on interpretation and application of the Agreement
1. Disputes between Contracting Parties concerning the interpretation or application of this Agreement shall, where possible, be resolved by consultations or negotiations.
2. If the dispute cannot be resolved in this manner within six months, it shall be submitted to the arbitration panel at the request of one of the Parties in accordance with the provisions of this Article.
3. The arbitration panel shall be established in the following manner for each individual case. Each Party shall appoint one member of the arbitration panel within three months of receipt of the request for arbitration. The two members shall then select a citizen of a third State who, with the agreement of both Parties, will be appointed President of the arbitration panel (hereinafter referred to as "the President '). The President shall be appointed within two months of the date of appointment of the other two members.
4. If the necessary appointments have not been made within one of the time limits referred to in paragraph 3 of this Article, the President of the International Court of Justice may be asked to make an appointment. If the President is a citizen of a Contracting Party or for any other reason is unable to carry out this act, the Vice-President shall be requested to be appointed. If the Vice-President is also a citizen of a Contracting Party or is unable to carry out such an act, the oldest member of the International Court of Justice who is not a citizen of any Contracting Party shall be requested to carry out the appointment.
5. The arbitration panel shall take its decisions by a majority vote. Such a decision is binding. Each Party shall reimburse the costs of its arbitrator and its participation in the arbitration procedure; the costs of the Chair and other expenditure shall be borne equally by both Parties. However, the arbitration panel may, in its decision, order that one of the two Contracting Parties bears a larger part of the costs and that finding is binding on both Contracting Parties. The arbitration panel shall determine its own rules of procedure.
Application of this Agreement
This Agreement shall apply to investments made by investors of the Czech Republic in the territory of the Republic of Indonesia admitted in accordance with Act No 1 of 1967 on Foreign Investment and any act supplementing or replacing it, and to future investments made by investors of the Republic of Indonesia in the territory of the Czech Republic as well as to Indonesian investments existing in the territory of the Czech Republic in accordance with the laws applicable to investments in force at the date of entry into force of this Agreement.
Application of other provisions
Where the provisions of a law of one of the Contracting Parties or obligations under international law existing at present or arising at a later date between the Contracting Parties outside this Agreement contain a general or special arrangement providing investors of the other Contracting Party with a treatment more favourable than that provided by this Agreement, such an arrangement shall, to the extent that it is more favourable, take precedence over this Agreement.
Consultations and changes
1. Each Party may request consultations on any matter relating to this Agreement. The other Contracting Party shall take a favourable position on this proposal and provide an appropriate opportunity for such consultations.
2. This Agreement may be amended whenever deemed necessary by mutual agreement.
Entry into force, duration and termination
1. This Agreement shall enter into force on the date of the later notification by any Contracting Party of the completion of its national ratification procedures.
2. This Agreement shall remain in force for a period of 10 years and shall then continue to apply for a further 10-year period and so on until one of the Contracting Parties denies it in writing one year before its expiry.
3. For investments made before the date of expiry of this Agreement, the provisions of Articles 1 to 12 of this Agreement shall remain effective for a period of 10 years from the date of expiry of this Agreement.
In order to prove the signature below, duly authorised, they signed this agreement.
Dane in duplicate in Prague on 17 September 1998 in Czech, Indonesian and English. All texts are equally authentic. In the event of any discrepancy in the interpretation, the English text is decisive.
For the Government of the Czech Republic:
Mgr. Ivo Svoboda v. r.
Minister for Finance
For the Government of the Republic of Indonesia:
Leonard Tobing v. r.
extraordinary and authorised ambassador
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Regulation Information
| Citation | Communication from the Ministry of Foreign Affairs No. 156 / 1999 Coll., on the negotiation of the Agreement between the Government of the Czech Republic and the Government of the Republic of Indonesia on the promotion and protection of investment |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 21.07.1999 |
|---|---|
| Effective from | 21.06.1999 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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