This research examines the legal protection of foreign investors based on the
Bilateral Investment Treaty (BIT) between Indonesia and the United Kingdom in
1976 with a case study of the dispute between Rafat Ali Rizvi against the
Government of the Republic of Indonesia which was resolved through the
international arbitration forum of the International Center for Settlement of
Investment Disputes (ICSID). This research aims to analyze how the protection
provisions in the BIT are interpreted and applied by the ICSID Tribunal, especially
regarding the provisions of Article 2 paragraph (1) regarding the requirement of
“granted admission in accordance with” the Indonesian Foreign Investment Law.
The research uses a normative juridical method with a case approach and analysis
of the ICSID arbitration award No. ARB/11/13. The results showed that the ICSID
Tribunal rejected Rizvi's claim on the grounds that his investment did not meet the
administrative requirements specified in Indonesian national law, especially
because it did not obtain approval from BKPM as the official investment authority.
The Tribunal also rejected the application of the Most Favored Nation (MFN)
clause in this case. This decision confirms that foreign investment protection
through BITs only applies if the investment is made in accordance with applicable
national legal procedures.