1. Where a Party is in serious balance of payments and external financial difficulties or under threat thereof or if, in exceptional circumstances, payments and capital movements cause or threaten to cause serious difficulties for macroeconomic management, in particular, monetary and exchange rate policies, it may adopt or maintain restrictions on payments or capital movements related to investments.

2. Restrictions adopted or maintained under Paragraph 1 shall:

(a) be consistent with the Articles of Agreement of the International Monetary Fund;

(b) avoid unnecessary damage to the commercial, economic and financial interests of the other Party;

(c) not exceed those necessary to deal with the circumstances described in Paragraph 1;

(d) be temporary and be phased out progressively as the situation specified in Paragraph 1 improves;

(e) be applied on a national treatment basis;

(f) ensure that the other Party is treated as favourably as any non-Party;

(g) not restrict payments or transfers for current transactions, unless the imposition of such measures complies with the procedures stipulated in the Articles of Agreement of the International Monetary Fund.

Article 11. Subrogation

1. If a Party, or any agency, institution, statutory body or corporation designated by the Party, makes a payment to an investor of the Party under a guarantee, a contract of insurance or other form of indemnity that it has entered into on non-commercial risks with respect to an investment, the other Party in whose territory the investment was made shall recognise the subrogation or transfer of any rights the investor would have possessed under this Agreement with respect to the investment but for the subrogation, and the investor shall be precluded from pursuing these rights to the extent of the subrogation.

2. The subrogated or transferred rights or claims shall not be greater than the original rights or claims of the said investor.

Article 12. Right to Regulate

1. For the purpose of this Agreement, the Parties reaffirm their right to regulate within their territories necessary to achieve legitimate policy objectives, such as the protection of public health, social services, public education, safety, environment or public morals, social or consumer protection, privacy and data protection, and the promotion and protection of cultural diversity.

2. For greater certainty, the mere fact that a Party regulates, including through a modification to its laws, in a manner which negatively affects an investment or interferes with an investor's expectations, including its expectations of profits, does not amount to a breach of an obligation under this Agreement.

Article 13. Corporate Social Responsibility

Each Party shall encourage legal entities operating within its territory or subject to its jurisdiction to voluntarily incorporate into their internal policies those internationally recognized standards, guidelines, and principles of corporate social responsibility that have been endorsed or are supported by that Party.

Article 14. Measures Against Corruption

1. Aninvestor of a Party and its investments shall not, prior to the establishment of an investment in the territory of the other Party or afterwards, offer, promise or give any undue pecuniary or other advantage, whether directly or through intermediaries, to a public official of the other Party for that official or for a third party, in order that the official or third party act or refrain from acting in relation to the performance of official duties, in order to achieve any favour in relation to an investment.

2. An investor of a Party and its investments, in the territory of the other Party, shall not be complicit in any act described in Paragraph 1, including incitement and aiding to commit such acts.

Chapter III. DISPUTE SETTLEMENT

Section ONE. SETTLEMENT OF DISPUTES BETWEEN A PARTY AND AN INVESTOR OF THE OTHER PARTY

Article 15. Scope

1. This Section shall apply to disputes between a Party and an investor of the other Party ("disputing parties") concerning an alleged breach of an obligation of the former under this Agreement which causes loss or damage to the investor (hereinafter referred to as an "investment dispute").

2. This Section shall not apply to investment disputes, which have occurred prior to the date of entry into force of this Agreement.

3. Anatural person possessing the nationality or citizenship of a Party may not pursue a claim against that Party under this Section.

4. A legal entity of a Party and its subsidiaries may not pursue a claim against the other Party under this Section, if the legal entity is owned or controlled by an investor of a non-Party, and such other Party does not maintain diplomatic relations with the non-Party.

Article 16. Transparency of Arbitral Proceedings

1. Subject to Paragraph 2, the disputing Party shall make publicly available all awards and decisions produced by the arbitral tribunal.

2. Any information specifically designated as confidential that is submitted to the arbitral tribunal or the disputing parties shall be protected from disclosure to the public.

3. Any of the disputing parties that intend to use information designated as confidential information in a hearing shall so advise the arbitral tribunal. The arbitral tribunal shall make appropriate arrangements to protect the information from disclosure.

4. The hearings of the arbitral tribunal shall be closed for the duration of any discussion of confidential information. Otherwise, the hearing shall be open to the public, unless the disputing parties decide otherwise.

5. The arbitral tribunal shall not require a disputing party to provide confidential business information or confidential information the disclosure of which would impede law enforcement, or otherwise be contrary to the security interest of the disputing Party, or which would prejudice the legitimate commercial interests of particular legal entities, public or private.

Article 17. Consultations

1. In the event of an investment dispute, the disputing parties shall initially seek to resolve the dispute with a view towards reaching an amicable settlement through consultation. Such consultations shall be initiated by a written request for consultations delivered by the disputing investor to the disputing Party.

2. With the objective of resolving a dispute through consultations, the written request for consultations shall contain information regarding the legal and factual basis for the investment dispute, including the name and address of the disputing investor, the provisions of this Agreement alleged to have been breached, the relief sought, the estimated amount of damages claimed, and evidence establishing that the disputing investor is an investor of the other Party and that it owns or controls the investments.

Article 18. Mediation

1. If the investment dispute cannot be resolved through consultations, a disputing party may request the other disputing party to have recourse to a non-binding, third party procedure, such as good offices, conciliation or mediation. Such process shall be initiated by a written request delivered by a disputing party to the other disputing party and requires the consent of both disputing parties.

2. The process under this Article can only be initiated by a disputing party within 6 months from the date of receipt of the written request for consultations by the disputing Party.

3. Expenses incurred in relation to the process under this Article shall be borne equally by the disputing parties. Each disputing party shall bear its own expenses derived from the participation in the process.

Article 19. Submission of a Claim

1. If an investment dispute cannot be resolved within 12 months from the receipt of the written request for consultations by the disputing Party, unless the disputing parties agree otherwise, the disputing investor may submit, on its own behalf or on behalf of its locally established enterprise (12), the dispute to the courts or to the administrative tribunals of the Party concerned or to international arbitration. In the latter event, the disputing investor has the choice between any of the following rules:

(a) the ICSID Convention and the ICSID Arbitration Rules, provided that the disputing Party and the Party of the disputing investor are parties to the ICSID Convention;

(b) the ICSID Additional Facility Rules, provided that either the disputing Party or the Party of the disputing investor is a party to the ICSID Convention;

(c) the UNCITRAL Arbitration Rules; or

(d) any other arbitral institutions or under any other arbitration rules, if the disputing parties so agree.

2. In case of any conflict between the provisions of this Agreement and the provisions of the applicable arbitration rules, the provisions of this Agreement shall prevail to the extent of any such inconsistency.

3. Each Party hereby consents to the submission of a dispute to arbitration under Paragraph 1 in accordance with the provisions of this Section, conditional upon the requirements for such submission defined in this Article.

4. The consent under Paragraph 3 and the submission of a claim to arbitration under this Section shall satisfy the requirements of:

(a) Chapter II of the ICSID Convention (Jurisdiction of the Centre) and the ICSID Additional Facility Rules for written consent of the parties to the dispute; and

(b) Article Il of the New York Convention for an "agreement in writing".

5. The disputing investor may only submit the claim to arbitration if the disputing investor, cumulatively:

(a) provides a written notice to the disputing Party of its intent to submit the dispute to such arbitration at least 90 days before the claim is submitted, which contains information regarding the legal and factual basis of the investment dispute provided by the disputing investor in its request for consultations and any changes to the information therein;

(b) delivers to the disputing Party, with the submission of a claim, its consent to the settlement of the dispute in the arbitration in accordance with the procedures set out in this Section;

(c) does not identify a measure in its claim that was not identified in its request for consultations;

(d) withdraws or discontinues any existing proceeding before a tribunal or court under domestic or international law with respect to a measure alleged to constitute a breach referred to in its claim; and

(e) waives its right to raise any claim or initiate any proceeding before a tribunal or court under domestic or international law with respect to a measure alleged to constitute a breach referred to in its claim.

Letters (d) and (e) above do not apply for injunctive, declaratory or other non-pecuniary legal remedy provided that the action is brought for the sole purpose of preserving the disputing investor's or the enterprise's rights and interests during the pendency of the arbitration.

6. A claim may only be submitted to arbitration under this Chapter if no final award concerning the same measure as alleged to breach the provisions of Chapter II (Investment Protection) has been rendered in a claim submitted by the disputing investor to another arbitral tribunal established pursuant to this Section, or any other treaty including investment protection.

7. In the event that the investor has not submitted the dispute to international arbitration pursuant to Paragraph 1 within 24 months of the date of receipt by the disputing Party of the written request for consultations, the investor shall be deemed to have withdrawn its request for consultations and may no longer submit the same dispute to international arbitration pursuant to Paragraph 1. This period may be extended by written agreement between the disputing parties before such period has expired.

8. The consent of the Parties to the submission of a dispute to arbitration under Paragraph 1 in accordance with the provisions of this Section, shall be subject to the condition that the investment dispute is submitted within five years of the time at which the disputing investor became aware, or should have reasonably become aware, of a breach of an obligation under this Agreement causing loss or damage to the disputing investor or its investment. This period may be extended by written agreement between the disputing parties before such period has expired.

Article 20. Third-Party Funding

1. The disputing parties shall notify the arbitral tribunal of the name and address of the third-party funder if they benefit from third-party funding.

2. Such notification shall be made at the time of submission of a claim, or without delay as soon as the third-party funding is agreed, donated or granted, as applicable.

3. If the disputing parties fail to disclose third party funding under this Article, the arbitral tribunal may consider the conduct of the disputing parties as a factor in allocating costs or order the suspension or termination of the proceedings.

Article 21. Constitution of the Arbitral Tribunal

1. Unless the disputing parties otherwise agree, the arbitral tribunal shall be composed of three arbitrators, who shall not be nationals or permanent residents of either Party. Each disputing party shall appoint one arbitrator and the appointed arbitrators shall agree upon a third arbitrator, who shall be the chairman of the arbitral tribunal. The chairman of the arbitral tribunal shall be a national of a non-Party which has diplomatic relations with the disputing Party and the non-disputing Party.

2. If an arbitral tribunal has not been established within 90 days from the date on which the claim was submitted to arbitration, either because a disputing party failed to appoint an arbitrator or because the appointed arbitrators failed to agree upon the chairman, the Secretary-General of ICSID, upon request of either disputing party, shall appoint, at his own discretion, the arbitrator or arbitrators not yet appointed. If the Secretary-General is a national or permanent resident of either Party, or he or she is otherwise unable to act, the Deputy Secretary-General of ICSID, who is not a national or permanent resident of either Party, may be invited to make the necessary appointments.

3. The arbitrators shall have experience or expertise in public international law, international investment law and the resolution of disputes arising under international investment law. The arbitrators shall be independent from the Parties and the disputing investor, and not be affiliated to or receive instructions from any of them.

4. Where any arbitrator appointed as provided for in this Article resigns or becomes unable to act, a successor shall be appointed in the same manner as prescribed for the appointment of the original arbitrator, and the successor shall have all the powers and duties of the original arbitrator.

5. Arbitrators appointed under this Section shall comply with the Code of Conduct of Arbitrators in Annex B of this Agreement.

Article 22. Governing Law and Joint Interpretation

1. An arbitral tribunal established in conformity with Article 21 (Constitution of the Arbitral Tribunal) shall decide the issues in dispute based on the provisions of this Agreement interpreted in accordance with applicable rules of international law. In addition, it may apply other rules of international law and rules of domestic law wherever appropriate in light of the issues to be resolved.

2. Where concerns arise as regards matters of interpretation of a provision of the Agreement, the Parties may adopt a joint interpretation. Such joint interpretation of the respective provision shall be binding on an arbitral tribunal established under this Chapter. The Parties may decide that this joint interpretation shall have binding effect from a specific date.

Article 23. Seat of Arbitration

Unless the disputing parties otherwise agree, the arbitral tribunal shall determine the seat of arbitration in accordance with the applicable arbitration rules, provided that the seat shall be in the territory of a State that is a party to the New York Convention.

Article 24. Arbitral Proceedings

1. Where issues relating to jurisdiction or admissibility are raised as preliminary objections, an arbitral tribunal shall decide the matter before proceeding to the merits.

2. The disputing Party may, no later than 45 days after the constitution of the arbitral tribunal, file as a preliminary objection that a claim is excluded under Article 15 (Scope of Agreement). The disputing Party may also file an objection that a claim is otherwise outside of the jurisdiction or competence of the arbitral tribunal or any other objection, for example, that a claim is frivolous or manifestly without legal merit, even if the facts alleged were assumed to be true. The disputing Party shall specify as precisely as possible the basis for the objection. This is without prejudice to a disputing Party's ability to raise such an objection at a later stage in the proceedings.

3. The arbitral tribunal shall address any such objection as a preliminary question apart from the merits of the claim. The disputing parties shall be given a reasonable opportunity to present their views and observations to the arbitral tribunal. If the arbitral tribunal decides that the claim is excluded under Article 15 (Scope of Agreement), or is otherwise not within the jurisdiction or competence of the arbitral tribunal, or if it accepts any other objection, it shall render an award or a decision to that effect.

4. The arbitral tribunal shall decide on an expedited basis any preliminary objection raised under this Article. The arbitral tribunal shall suspend any proceedings on the merits and issue a decision or award on the objection, stating the grounds therefore, no later than 150 days after the date of the request. However, if a disputing party requests a hearing, the arbitral tribunal may take an additional 30 days to issue the decision or award. Regardless of whether a hearing is requested, an arbitral tribunal may, on a showing of extraordinary cause, delay issuing its decision or award by an additional brief period, which may not exceed 30 days.

Article 25. Diplomatic Protection

Neither Party shall give diplomatic protection, or bring an international claim, in respect ofa dispute which one of its investors and the other Party shall have consented to submit or have submitted to arbitration under this Section, unless such other Party has failed to abide by and comply with the award rendered in such dispute. Diplomatic protection, for the purposes of this Article, shall not include informal diplomatic exchanges for the sole purpose of facilitating a settlement of the dispute.

Article 26. Awards

1. Where an arbitral tribunal makes a final award against a disputing Party, the arbitral tribunal may award, separately or in combination, only:

(a) monetary damages and any applicable interest; and

(b) restitution of property, provided that the disputing Party may pay monetary damages and any applicable interest, representing the fair market value of the property at the time immediately before the expropriation or impending expropriation became known, whichever is earlier, in lieu of restitution.

2. An arbitral tribunal may also award costs of the proceedings and costs of legal representation and assistance in accordance with this Section and the applicable arbitration rules.

3. An arbitral tribunal may not award punitive damages.

4. The award shall be binding and shall not be subject to any review mechanism other than those provided for in the ICSID Convention or other applicable arbitration rules on which the arbitral proceedings chosen by the disputing investor are based.

5. A disputing investor may not seek enforcement of a final award until:

(a) in the case of a final award under the ICSID Convention:

(i) 120 days have elapsed from the date the award was rendered and no disputing party has requested revision or annulment of the award; or

(ii) revision or annulment proceedings have been completed;

(b) in the case of a final award under the ICSID Additional Facility Rules, the UNCITRAL Apbitration Rules, or the arbitration rules selected pursuant to Paragraph 1(d) of Article 19 (Submission of a Claim):

(i) 90 days have elapsed from the date the award was rendered and no disputing party has commenced a proceeding to revise, set aside, or annul the award; or

(ii) court has dismissed or allowed an application to revise, set aside, or annul the award and there is no further appeal.

6. Subject to Paragraph 5 and the applicable review procedures, the disputing parties shall abide by and comply with an award without delay.

Article 27. Costs

1. The arbitral tribunal shall order that the costs of the proceedings be borne by the unsuccessful disputing party. In exceptional circumstances, the arbitral tribunal may apportion costs between the disputing parties if it determines that apportionment is appropriate in the circumstances of the case. Other reasonable costs, including costs of legal representation and assistance, shall be borne by the unsuccessful disputing party, unless the arbitral tribunal determines that such apportionment is unreasonable in the circumstances of the case. If only parts of the claims have been successful, the costs shall be allocated proportionately according to the number or extent of the successful parts of the claims.

2. The arbitral tribunal shall ensure that all decisions on costs are reasoned and form part of the award.

Article 28. Security for Costs

1. Upon request of a disputing party, the arbitral tribunal may order any disputing party asserting a claim or counterclaim to provide security for costs.

2. In determining whether to order a disputing party to provide security for costs, the arbitral tribunal shall consider all relevant circumstances, including:

(a) that disputing party's ability to comply with an adverse decision on costs;

(b) that disputing party's willingness to comply with an adverse decision on costs;

(c) the effect that providing security for costs may have on that disputing party's ability to pursue its claim or counterclaim; and

(d) the conduct of the disputing parties.

3. The arbitral tribunal shall specify any relevant terms in an order to provide security for costs and shall fix a time limit for compliance with the order.

4. If a disputing party fails to comply with an order to provide security for costs within 30 days after the arbitral tribunal's order or within any other time period set by the arbitral tribunal, the arbitral tribunal may suspend the proceeding. If the proceeding is suspended for more than 90 days, the arbitral tribunal may, after consulting with the disputing parties, order the discontinuance of the proceeding.

5. A disputing party shall promptly disclose any material change in the circumstances upon which the arbitral tribunal ordered security for costs.

6. The arbitral tribunal may at any time modify or revoke its order on security for costs, on its own initiative or upon a disputing party's request.

Article 29. Consolidation

Where two or more claims have been submitted separately to arbitration under Article 19 (Submission of a Claim) and the claims have a question of law or fact in common and arise out of the same or similar events or circumstances, all concerned disputing parties may agree to consolidate those claims.

Article 30. Discontinuance

If, following the submission of a claim under this Section, the disputing investor fails to take any steps in the proceedings within 180 days or such period as the disputing parties may agree, the disputing investor shall be deemed to have withdrawn its claim and to have discontinued the proceedings. The arbitral tribunal shall, at the request of the disputing Party, and after giving notice to the disputing parties, issue an order taking note of the discontinuance of the proceedings. After such an order has been rendered, the authority of the arbitral tribunal shall lapse.

Article 31. Service of Documents

1. Notices and other documents in disputes under this Section shall be served on Indonesia by delivery to:

Director General for Legal Affairs and International Treaties

Ministry of Foreign Affairs

Jl. Taman Pejambon No. 6

Jakarta 10110

INDONESIA

2. Notices and other documents in disputes under this Section shall be served on Switzerland by delivery to:

State Secretariat for Economic Affairs SECO

Holzikofenweg 36

3003 Bern

SWITZERLAND

Section TWO. SETTLEMENT OF DISPUTES BETWEEN THE PARTIES

Article 32. Scope

This Section applies to the settlement of disputes between the Parties arising from the interpretation or application of the provisions of this Agreement.

Article 33. Consultations

1. Either Party may request in writing consultations on the interpretation or application of this Agreement. If a dispute arises between the Parties on the interpretation or application of this Agreement, it shall, to the extent possible, be settled amicably through consultations.

2. In the event the dispute is not settled through the means mentioned above within 6 months from the date such consultations were requested in writing, then, unless the Parties agree otherwise, either Party may submit such dispute to an arbitral tribunal established in accordance with this Section or, by agreement of the Parties, to any other international tribunal.

Article 34. Constitution of Arbitral Tribunal

1. Arbitration proceedings shall initiate upon written notice delivered by one Party (hereinafter referred to as "requesting Party") to the other Party (hereinafter referred to as "respondent Party") through diplomatic channels. The notice shall identify the specific measure at issue and provide details of the factual and legal basis of the complaint (including the provisions of this Agreement to be addressed by the arbitral tribunal) sufficient to present the problem clearly.

2. Each Party shall appoint one arbitrator, and these two arbitrators shall appoint a chairman who shall be a national ofa non-Party which has diplomatic relations with the Parties. If one of the Parties has not appointed its arbitrator and has not followed the invitation of the other Party to make that appointment within two months of the notice for arbitration, the arbitrator shall be appointed at the request of that Party by the Secretary General of ICSID. If the arbitrators cannot agree on the choice of the chairman within two months of their appointment, the chairman shall be appointed at the request of either Party by the Secretary General of ICSID.

3. If the Secretary General of ICSID is prevented from carrying out the said function or is a national of one of the Parties, the President of the International Court of Justice shall act as appointing authority. If the President of the International Court of Justice is prevented from carrying out the said function or is a national of one of the Parties, the appointments shall be made by the Vice-President, and if the latter is prevented or is a national of one of the Parties, the appointments shall be made by the next senior member of the Court who is not a national of a Party.

4. The arbitrators shall have experience or expertise in public international law and investment law and the resolution of disputes arising under international investment law. The arbitrators shall be independent from the Parties, and not be affiliated to or receive instructions from either of them.

5. Inthe event an arbitrator appointed under this Article resigns or becomes unable to act, a successor shall be appointed in the same manner as prescribed for the appointment of the original arbitrator, and he or she shall have the same powers and duties that the original arbitrator had.

6. Each Party shall bear the costs of its appointed arbitrator and of any legal representation in the proceedings. The costs of the chairman of the arbitral tribunal and of other expenses associated with the conduct of the arbitration shall be borne equally by the Parties, unless the arbitral tribunal decides otherwise.

Article 35. Seat of Arbitration

Unless the Parties agree otherwise, the seat of arbitration shall be determined by the arbitral tribunal.

Article 36. Arbitral Proceedings

1. An arbitral tribunal established under this Section shall decide all questions submitted by the requesting Party and, subject to any agreement between the Parties, determine its own procedure. At any stage of the proceedings, the arbitral tribunal may propose to the Parties that the dispute be settled amicably.

2. An arbitral tribunal established in conformity with Article 34 (Constitution of Arbitral Tribunal) shall decide the issues in dispute based on the provisions of this Agreement interpreted in accordance with applicable rules of international law. In addition, it may apply other rules of international law and rules of domestic law wherever appropriate in light of the issues to be resolved.

3. The award shall be issued in writing and shall contain the applicable factual and legal findings. The award shall be final and binding on the Parties and on each arbitral tribunal constituted under this Agreement.

Chapter IV. GENERAL PROVISIONS, EXCEPTIONS AND FINAL PROVISIONS

Article 37. More Favourable Conditions

If the legislation of either Party, or international obligations existing at present or established hereafter between the Parties in addition to this Agreement, result in a position entitling investment by investors of the other Party to treatment more favourable than is provided for by this Agreement, such position shall not be affected by this Agreement.