ASEAN Comprehensive Investment Agreement (2009)
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Industry Classification: 2429

Level of Government: Central Government and Province/Municipality (4)

Type of Obligation: National Treatment Senior Management and Board of Director

Description of Measure: National Treatment and SMBD shall not apply to any measure relating to the manufacturing of narcotic and psychotropic substances.

Manufacturing of narcotic and psychotropic substances of schedule 1 is prohibited in the Kingdom of Cambodia, but the manufacturing of finished products of schedule 2 and 3 is only permitted according to the needs and planning of the Ministry of Health of Cambodia.

Source of Measure

- Law on the Controlling of Drugs (0197.01/24 1997) Article 1, Article 2, Article 3 and Article 4.

- Schedule 1, 2 and 3 of the 1961 Single Convention on Narcotic Drugs and the 1971 Convention on Psychotropic Substances.

- Sub-Decree No 111 ANK/BK date on September 27, 2005 on the Implementation of the Law on the Amendment to the Law on Investment of the Kingdom of Cambodia.

(4) Provincial/Municipality refers to regional government.

5.

Sector: Manufacturing

Sub-Sector: Production of poisonous chemicals, agriculture pesticide/ insecticide and other goods by using chemical substances

Industry Classification: 2421

Level of Government: Central Government and Province/Municipality (5)

Type of Obligation: National Treatment Senior Management and Board of Director

Description of Measure:

The production of poisonous chemicals, agriculture pesticide/insecticide is closed to foreign investors.

The production of other goods by using chemical substances, prohibited by international regulations or the World Health Organization, is closed to all investors.

Source of Measure:

- Prakas No. 598 BRK.KSK dated 15 December 2003 issued by Ministry of Agriculture, Forestry and Fishery.

- Sub-Decree No 111 ANK/BK date on September 27, 2005 on the Implementation of the Law on the Amendment to the Law on Investment of the Kingdom of Cambodia.

(5) Provincial/Municipality refers to regional government.

6.

Sector: Forestry

Sub-Sector: Forestry and Logging: Forestry exploitation business

Industry Classification: 0200

Level of Government: Central Government and Province/Municipality (6)

Type of Obligation: National Treatment Senior Management and Board of Director

Description of Measure: NT and SMBD shall not apply to any measure relating to restrictions or regulations on forestry and forestry-related industries.

All activities prescribing in the chapter 8 (article 28 to article 39) of the Forestry Law shall be prohibited. Natural Protected Areas shall be governed by the Law on Environmental Protection and Management of Natural Resources, with the purpose to :

- protect and promote environmental quality and public health through the prevention, reduction, and control of pollution.

- assess the environmental impacts of all proposed projects prior to the issuance of the decision by the Royal Government

- ensure the rational and sustainable conservation, development, management, and use of the natural resources of the Kingdom of Cambodia

- encourage and enable the public to participate in environmental protection and natural resource management

- suppress any acts that cause harm to the environment Cambodia's measures relating to the investments in the Permanent Forest Reserves, except for rubber and eucalyptus plantations, are for the purpose of ensuring the sustainable management of forests for its social, economic and environmental benefits, including conservation of biological diversity and cultural heritage and Investors or the investment must comply with environmental impact assessment screening criteria and assessment process applicable to their proposed investments prior to their establishment, as required by the Law on Environmental Protection and Natural Resource Management of the Kingdom of Cambodia and its Sub- Decree on Environmental Impact Assessment Process (EIAP) for such investment.

Source of Measure:

- Forestry law (Reach Kram NS/RKM/0802/016 dated 31 August 2002).

- Law on Environmental Protection and Natural Resource Management dated 24 December 1996.

- Government Declaration date 25 January 1999 on Management and Elimination of Forest Anarchy.

- Sub-Decree No 111 ANK/BK date on September 27, 2005 on the Implementation of the Law on the Amendment to the Law on Investment of the Kingdom of Cambodia.

(6) Provincial/Municipality refers to regional government.

7.

Sector: Mining

Sub-Sector: Mining including sand exploitation, and Oil and Gas

Industry Classification: 1410, 1110

Level of Government: Central Government and Province/Municipality (7)

Type of Obligation: National Treatment Senior Management and Board of Director

Description of Measure: In order to protect the Natural Environment in all areas within the fresh water and sea water in the Kingdom of Cambodia, all kind of sand exploitation for export abroad shall be prohibited and closed.

National Treatment and Senior Management and Board of Director shall not apply to any measure relating to mining including the sand exploitation and oil and gas activities carried out within Cambodia.

Investment license in mining including sand exploitation and oil and gas activities is required and shall be subject to terms and conditions determined by the relevant regulatory authorities including: the National Petroleum Authority and the Ministry of Industry, Mines and Energy, Ministry of Water Resources Management and Meteorology.

Source of Measure:

- Law on Environmental Protection and National Resource Management dated 24 December 1996.

- Preah Reach Kram NS/RKM/0701/09 on Law on Mineral Resource Management and Exploitation dated 13 July 2001.

- Sub-Decree No: 27 ANRK.BK date on April 06, 1999 on the Water Pollution Control.

- Government Decision No. 29 SSR date on 08 May 2009 on the Limitation of Sand Exploitation.

(7) Provincial/Municipality refers to regional government.

Indonesia

1.

Sector: All Sectors

Sub-Sector

Industry Classification

Level of Government: Central

Type of Obligation: National Treatment

Description of Measure: National Treatment may not apply to any measures affecting land, property and natural resources associated with land, including acquisition, ownership and lease of land and property.

Source of Measure:

- Article 33 of 1945 National Constitution

- Law No.5 of 1960 Concerning Basic Regulations on Agrarian Principles

- Law No. 25 of 2007 Concerning Investment

2.

Sector: All Sectors

Sub-Sector

Industry Classification

Level of Government: Central

Type of Obligation: National Treatment

Description of Measure: Business license is given to a foreign investment (1) as required by the relevant regulatory authorities.

National Treatment may not apply to any measure with regard to the duration (2) of the Business License.

Source of Measure:

- Law No. 25 of 2007 Concerning Investment

- Law No. 4 of 2009 Concerning Mining Mineral and Coal

- Industry Minister Regulation No. 41 of 2008 Concerning Provision and Procedure of Industrial Business Licenses, Expansion Licenses and Industrial Registration

- Agriculture Minister Regulation No. 26 of 2007 Concerning Guidelines for License on Farming Sectors

- Government Policy

(1) For the purpose of this reservation, the term "foreign investment" can be found in Law No. 25 of 2007.
(2) For illustrative examples, the duration of the Business License depends on the respective policy of each sector (e.g. the license period for the manufacturing sector is 30 years and for the fishery and aquaculture (sub sector: Coral) is 5 years).

3.

Sector : All Sectors

Sub-Sector

Industry Classification

Level of Government : Central

Type of Obligation : National Treatment

Description of Measure : Foreign investor (3) investing in Indonesia must take the form of an Indonesian limited liability company which is subject to Indonesia's Corporate Law, denoted as PT (Perseroan Terbatas).

Source of Measure :

- Law No.25 of 2007 Concerning Investment

- Law No. 40 Of 2007 Concerning Limited Liability Company

(3) For the purpose of this reservation, the term "foreign investor" can be found in Law No. 25 of 2007.

4.

Sector: All Sectors

Sub-Sector

Industry Classification

Level of Government: Central

Type of Obligation: National Treatment

Description of Measure: Foreign investment (4) shall appoint local distribution agents to sell its products to the end-users in Indonesia.

Source of Measure:

- Government Regulation No. 15 of 1998 Concerning The Termination of Foreign Business Activities in The Trade Sectors

- Trade and Industry Minister Decree No. 160/1998 on Amendment of Trade and Industry Minister Decree No. 77 of 1978 on Provision Concerning The Limited Trade Activities for Production Company in the Frame of Capital Investment

(4) For the purpose of this reservation, the term "foreign investment" can be found in Law No. 25 of 2007.

5.

Sector: All Sectors

Sub-Sector:

Industry Classification:

Level of Government: Central

Type of Obligation: National Treatment

Description of Measure:

1. As may be required by the relevant regulatory authorities, a company in which foreign investors (1) own 100% shares, subject to prior notification before the grant of the license, after certain period since commencement of commercial production, the said foreign investors should sell a part of the company's share to domestic investors (2).

2. In the case of Mineral and Coal Mining subsector (3), mining business license (Izin Usaha Pertambangan) for foreign investment (4) shall be given by the Minister of Energy and Mineral Resources of The Republic of Indonesia.

Subject to prior notification before the grant of mining business license (Izin Usaha Pertambangan), 5 (five) years after the commencement of production, foreign shareholders (5) of foreign investment should sell their shares gradually to Indonesian shareholders (6) according to the following priorities :

1) central government,

2) provincial government,

3) regencies/municipalities,

4) state owned enterprises (Badan Usaha Milik Negara and Badan Usaha Milik Daerah),

5) national private business entity (7)

The shares of the said Indonesian shareholders shall be at least as the following :

a. 20% of total shares in the 6th year ;

b. 30% of total shares in the 7th year;

c. 37% of total shares in the 8th year;

d. 44% of total shares in the 9th year;

e. 51% of total shares in the 10th year.

Source of Measure :

- Law No. 25 of 2007 Concerning Investment

- Law No. 4 of 2009 Concerning Mineral and Coal Mining

- Government Regulation No.20 of 1994 Concerning Share Ownership in Companies Set Up Under Foreign Capital Investments.

- Government Regulation No. 23 of 2010 Concerning the Implementation of Mineral and Coal Mining Activities Jo. Government Regulation No. 24 of 2012 Concerning Amendment of Government Regulation No. 23 of 2010 on the Implementation of Mineral and Coal Mining Activities.

(1) For the purpose of this reservation, the term "foreign investor" can be found in Law No. 25 of 2007.
(2) For the purpose of this reservation, the term "domestic investor" can be found in Law No. 25 of 2007.
(3) For the purpose of this reservation, the scope of Mineral and Coal Mining subsector is defined in Law No. 4 of 2009 Concerning Mineral and Coal Mining and Government Regulation No. 23 of 2010 Concerning the Implementation of Mineral and Coal Mining Activities Jo. Government Regulation No. 24 of 2012 Concerning Amendment of Government Regulation No. 23 of 2010 on the Implementation of Mineral and Coal Mining Activities.
(4) For the purpose of this reservation, the term "foreign investment" can be found in Law No. 25 of 2007.
(5) For the purpose of this reservation, the term "foreign shareholders" can be found in Government Regulation No. 24 of 2012 Concerning Amendment of Government Regulation No. 23 of 2010 on the Implementation of Mineral and Coal Mining Activities.
(6) For the purpose of this reservation, the term "Indonesian shareholders" can be found in Government Regulation No. 23 of 2010 Concerning the Implementation of Mineral and Coal Mining Activities. Jo. Government Regulation No. 24 of 2012 Concerning Amendment of Government Regulation No. 23 of 2010 on the Implementation of Mineral and Coal Mining Activities.
(7) For the purpose of this reservation, the term "national private business entity" can be found in Government Regulation No. 23 of 2010 Concerning the Implementation of Mineral and Coal Mining Activities.

6.

Sector: All Sectors

Sub-Sector

Industry Classification

Level of Government: Central

Type of Obligation: National Treatment Senior Management and Board of Directors

Description of Measure: Foreign investment established under Indonesia's Corporate Law must have certain positions (8) to be occupied by Indonesian nationality

Source of Measure:

  • Article   1 Objective 1
  • Article   2 Guiding Principles 1
  • Article   3 Scope of Application 1
  • Article   4 Definitions 1
  • Article   5 National Treatment 1
  • Article   6 Most-favoured-nation Treatment (4) 1
  • Article   7 Prohibition of Performance Requirements 1
  • Article   8 Senior Management and Board of Directors 1
  • Article   9 Reservations 1
  • Article   10 Modification of Commitments 1
  • Article   11 Treatment of Investment 1
  • Article   12 Compensation In Cases of Strife 1
  • Article   13 Transfers 1
  • Article   14 Expropriation and compensation (9) 2
  • Article   15 Subrogation 2
  • Article   16 Measures to safeguard the balance-of-payments 2
  • Article   17 General exceptions 2
  • Article   18 Security exceptions 2
  • Article   19 Denial of benefits 2
  • Article   20 Special formalities and disclosure of information 2
  • Article   21 Transparency 2
  • Article   22 Entry, temporary stay and work of investors and key personnel 2
  • Article   23 Special and differential treatment for the newer asean member states 2
  • Article   24 Promotion of investment 2
  • Article   25 Facilitation of investment 2
  • Article   26 Enhancing asean integration 2
  • Article   27 Disputes between or among member states 2
  • Section   B Investment dispute between an investor and a member state 2
  • Article   28 Definitions 2
  • Article   29 Scope of coverage 2
  • Article   30 Conciliation 2
  • Article   31 Consultations 2
  • Article   32 Claim by an investor of a member state 2
  • Article   33 Submission of a claim 2
  • Article   34 Conditions and limitations on submission of a claim 3
  • Article   35 Selection of arbitrators 3
  • Article   36 Conduct of the arbitration 3
  • Article   37 Consolidation 3
  • Article   38 Expert reports 3
  • Article   39 Transparency of arbitral proceedings 3
  • Article   40 Governing law 3
  • Article   41 Awards 3
  • Article   42 Institutional arrangements 3
  • Article   43 Consultations by member states 3
  • Article   44 Relation to other agreements 3
  • Article   45 Annexes, schedule and future instruments 3
  • Article   46 Amendments 3
  • Article   47 Transitional arrangements relating to the asean iga and the aia agreement 3
  • Article   48 Entry into force 3
  • Article   49 Depositary 3
  • ANNEX 1  Approval in writing 3
  • ANNEX 2  Expropriation and compensation 3
  • Modality for the elimination/improvement of investment restrictions and impediments in asean member states 3
  • Protocol to amend the asean comprehensive investment agreement 4
  • 1 Amendment to article 9 (reservations) of the acia 4
  • 2 Amendments to article 10 (modification of commitments) of the acia 4
  • 3 Amendments to article 42 (institutional arrangements) of the acia 4
  • 4 Insertion of annex 3 to the acia 4
  • 5 Transitory provisions 4
  • 6 Final provisions 4
  • Appendix 1  Template for notification 4
  • Appendix 2  Supplementary note 4
  • Second protocol to amend the asean comprehensive investment agreement 4
  • 1 Amendment to the definition of 'natural person' 4
  • 2 Amendments to article 7 (prohibition of performance requirements)' 4
  • 3 Final provisions' 4
  • Schedule to the asean comprehensive investment agreement  5
  • HEADNOTE  List of reservations 5
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