In addition, the treaty allows a country to restrict the transfer or movement of capital for investments in the event of economic difficulties. The ILO guarantees the protection of investments made from 9 March 2021 and investments made thereafter. The treaty establishes rules for the treatment of investors and investments of both countries. It will also offer investors from both countries additional protection for their investments. Singapore has been Indonesia`s largest foreign investor since 2014. Singapore`s investment in Indonesia amounted to $9.8 billion last year ($13.2 billion). The contract allows investors to freely transfer investments within and outside the host country; However, certain transmissions are prohibited. These are as follows: our FTA partners are required to allow the movement of funds related to foreign investment freely and immediately on and off their territory. Holding companies are not entitled to protection if they do not have significant activity in their country of origin. This means that investments held in Singapore by an Indonesian public limited company with no activity in Indonesia will not be protected and vice versa. Singapore has concluded the following international tax agreements: Chan said Indonesia remains an attractive investment destination for Singapore companies, which is reflected, for example, in investments in kendal Industrial Park in central Java. UNCTAD`s work programme on international investment agreements (IIAs) actively assists policy makers, government officials and other IIA stakeholders in reforming IIAs to make them more conducive to sustainable development and inclusive growth. International investment regimes operate at the bilateral, regional, interregional and multilateral levels.
Policymakers, negotiators, civil society and other stakeholders need to be well informed about foreign direct investment, international investment agreements (IIAs) and their impact on sustainable development. Main objectives of UNCTAD`s IIA work programme • Reform of the international investment agreement (IIA) regime to improve its sustainable development dimension; • Comprehensive analysis of key issues arising from the complexity of the international investment regime • Development of a wide range of instruments to support the formulation of a more balanced international investment policy. She said the off contract has a „win-win“ situation for both sides and said: „The treaty gives more security and confidence, as it offers legal protection to Indonesian and Singaporean investors.