Likuiditas, leverage, arus kas dan ukuran perusahaan sebagai determinan faktor financial distress

One of the ways used to predict the existence of financial distress conditions is to measure financial performance indicators from the company's financial statements published by the company. In this study, the financial performance used to predict financial distress is liquidity, leverage, cash flow and company size. This research is a causal associative research using a quantitative approach, the population used is 32 food and beverage sub-sector companies listed on the Indonesia Stock Exchange (IDX) for the period 2017-2021. Sampling using purposive sampling method. The type of data used is secondary data. Data analysis using multiple linear regression models using the Statistical Product and Service Solutions (SPSS V.26) calculation program. Liquidity and Cash Flow have a negative and significant effect on financial distress, Leverage has a positive and significant effect on financial distress and Company size has no effect on financial distress. So it is concluded that the size of the company cannot determine financial distress in a company

The Waiving of Jurisdictional Concerns in Arbitration: A Case Study of the IMFA v. Indonesia Arbitration

As a field of law that is constantly developing, International Investment Law relies quite heavily on past arbitration awards or jurisprudence to derive the applicable laws in each respective case. This means that every new arbitration award should ideally be studied in order to identify what possible ramifications it may have for a future arbitration case. It is therefore of utmost importance that arbitral tribunals formulate and state their reasoning when they come to a conclusion regarding a disputed issue in a case. Doing this would provide insight as to the tribunal’s legal reasoning and would clear up any possible issues of legal certainty for the case in question as well as be of benefit for future tribunals. This is the reason for scrutinizing the IMFA v. Indonesia award. The tribunal in IMFA v. Indonesia had decided to forego coming to a conclusion on some of the jurisdictional arguments on the grounds that the merits of the case were found to be in favor of the Respondent (as the party who challenged the tribunal’s jurisdiction). This sort of waiving of Jurisdictional concerns is not advisable considering the precedent it would set, and also considering the fact that it would run counter to the Kompetenz-Kompetenz doctrine and right to present one’s case. This article aims to use the IMFA v. Indonesia case as a study to elaborate on why such a waiving is inadvisable and would set a bad precedent. Keywords: Arbitration, Jurisdiction, Kompetenz-Kompetenz DOI: 10.7176/JLPG/123-07 Publication date:August 31st 202

Struktur kepemilikan, arus kas operasi, tingkat hutang dan volatilitas penjualan sebagai faktor penentu persistensi laba

It is important for investors to estimate the financial performance of the companies they invest in, with earnings sustainability as a key indicator. This study aims to explore the relationship between ownership structure, operating cash flow, debt level, and sales volatility and earnings sustainability in food and beverage sub-sector manufacturing companies on the Indonesia Stock Exchange for the period 2020–2022. Using the purposive sampling method, 30 companies were selected as research samples. Data analysis was carried out through multiple linear regression using SPSS software. The results showed that operating cash flow significantly contributed to earnings sustainability. However, ownership structure, debt level, and sales volatility have no significant impact on earnings sustainability. The findings provide important insights for investors in planning their investments, highlighting the importance of paying attention to factors that affect corporate earnings sustainability in making investment decisions

Distribusi Dan Populasi Cecidochares Connexa Macquart (Diptera: Tephritidae) Serta Parasitoidnya Di Kawasan Gunung Arjuno Dan Gunung Bromo, Jawa Timur

Di Indonesia, Chromolaena odorata merupakan gulma penting di padang pengembalaan dan perkebunan. Gulma ini berupa semak berkayu dan membentuk kelompok. Salah satu pengendalian secara biologi C. odorata yaitu dengan mengintroduksi Cecidochares connexa pada tahun 1993 dari Columbia oleh Balai Penelitian Kelapa Sawit, Marihat, Sumatera Utara dan memperoleh izin pelepasan pada tahun 1995 oleh Menteri Pertanian. C. connexa merupakan lalat pembentuk puru batang pada C. odorata. Namun, upaya untuk mengatasi gulma C. odorata dengan cara pengendalian biologi menggunakan C. connexa cenderung kurang berhasil. Hal ini disebabkan adanya musuh alami dari lalat C. connexa yaitu predator dan parasitoid. Tujuan dari penelitian adalah untuk mengetahui distribusi dan populasi dari C. connexa serta parasitoidnya pada berbagai ketinggian tempat dan tipe penggunaan lahan di sekitar kawasan Gunung Arjuno dan Gunung Bromo. Penelitian ini menggunakan metode purposive sampling yaitu menentukan lokasi yang ditemukan C. odorata pada berbagai ketinggian tempat (500 mdpl hingga 1000 mdpl) dan tipe penggunaan lahan berbeda di Kawasan Gunung Arjuno dan Bromo. Pengambilan puru C. connexa dan parasitoidnya dilakukan pada sembilan transek berdasarkan keberadaan C. odorata. Di setiap transek keberadaan C. odorata dihitung populasinya dan dicatat tipe penggunaan lahan dan koordinat lokasinya. Batang atau tangkai C. odorata yang terdapat puru C. connexa diambil kemudian dimasukkan ke dalam wadah dan diberi label. Puru C. connexa yang diperoleh, dibawa ke laboratorium untuk diamati kemunculan imago lalat C. connexa dan parasitoidnya. Imago yang muncul baik C. connexa dan parasitoidnya dilakukan identifikasi dengan menggunakan mikroskop binokuler di Laboratorium Hama Tumbuhan, Jurusan Hama dan Penyakit Tumbuhan, Fakultas Pertanian, Universitas Brawijaya. Hasil penelitian menunjukkan bahwa C. odorata dapat tumbuh di berbagai tipe penggunaan lahan, meliputi lahan kosong, agroforestry, tegalan, kebun, perumahan, sawah dan pinggir jalan. C. odorata lebih banyak ditemukan di lahan kosong dibandingkan dengan tipe penggunaan lahan lainnya. Keberadaan C. odorata diikuti pula dengan keberadaan lalat puru C. connexa. Walaupun demikian populasi lalat puru C. connexa cenderung menurun seiring dengan bertambahnya ketinggian tempat. Parasitoid yang ditemukan memarasit C. connexa berasal dari Ordo Hymenoptera yaitu dari famili Ichneumonidae, famili Braconidae, famili Ormyridae dan famili Eulophidae. Distribusi dan populasi C. connexa serta parasitoidnya dipengaruhi tipe penggunaan lahan, tetapi ketinggian tempat tidak berpengaruh

Joinder of Third Party in Arbitration under Indonesian Arbitration Law

Arbitration proceeding derives from an arbitration agreement, hence if there is no consent from all of the disputing parties, it is impossible for a third-party that is a non-signatory to an arbitration agreement to join an on-going arbitral proceeding in most jurisdictions. In Indonesia, joinder of third-party is regulated under Article 30 Law Number 30 of 1999 on Arbitration and Alternative Dispute Resolution. This study will analyze the joinder regulation in Indonesia, comparing it with the practice in Indonesia and arbitration laws in another countries. This paper is written in normative juridical method that will be connected to the practice of joinder in Indonesia. Conclusively, joinder of third party is stipulated in Article 30 Law Number 30 of 1999. However, this article absents on explaining further about the form of joinder and also the condition should be applied. For more certainty, Law No 30/ 1999 needs to be revised, namely regarding the form of third-party joinder, justification for the joinder of third parties, and whether third parties can defend their own interests or must defend the interests of the disputing parties. Moreover, further requirements such as at what stage a third party can join in the arbitration process and the criterions of “elements of related interest” under this article must also be explained. Keywords: Arbitration, Joinder of Third Party, Indonesia Arbitration Law DOI: 10.7176/JLPG/123-04 Publication date:August 31st 202

The ISDS Mechanism and Standards of Protection in the Investment Treaty

International investment activities require legal certainty for investors. While the host country also needs legal certainty related to state sovereignty, legal protection is needed for investors and the host country to realize legal certainty in investment activities. Countries in the world entered into investment agreements to provide legal protection for investment activities. In investment agreements, generally, there are requirements to comply with the national law of the host country to get protection from investment agreements. This study aims to review the implications of not fulfilling the obligations in the investment agreement to apply the benefits contained therein, specifically regarding ISDS mechanism and protection standards. This study finds that the impact of the non-fulfillment of these obligations on the ISDS mechanism depends on the admission clause specified in the Bilateral Investment Treaty (BIT). On standards of protection, it refers to general principles of international law and arbitration decisions, investments that violate these obligations do not receive international legal protection. This research suggests the Indonesian Government tighten the admission clause in the BIT to prevent investors from using the ISDS mechanism in the BIT and to specify the impact of violating obligations to comply with the national laws of the host country. KEYWORDS: International Investment Law, Standards of Protection, Bilateral Investment Treat

Balancing Investment Protection and Regulatory Chill: How Indonesian Investment Agreements Impact the Regulation and Enforcement of Mining Licenses

Investment agreements continues to be welcomed by host states for the investment it attracts, but a growing body of work supports the idea that investment agreements may also restrict host states from enacting specific public regulations for fear of capital flight, reputational damage and costs involved within ISDS proceedings, an effect known as Regulatory Chill. Previous works on Regulatory Chill in Indonesia’s mining industry have analyzed the partial rollback of a ban on open pit mining in protected forests as a response to the affected investors’ threat for the commencement of the arbitration. Following the change of Indonesia’s mining system from contracts of works to licenses, 3 new investor-state disputes involving mining licenses have been raised to ISDS. This article sets out two main objectives: (i) to establish the existence of the Regulatory Chill effect in connection with Indonesia’s mining sector and (ii) to examine potential solutions through amendments to Indonesia’s investment agreement. This article has found one instance of the Regulatory Chill effect in the form of policy response from the case of Nusa Tenggara v. Indonesia. However, it failed to find enough evidence of an internalization chill. In regards to Indonesia’s investment agreements, this article recommends maintaining the host state’s regulatory space by amending investment agreements to include exclusions to sensitive regulatory areas, greater elaboration of FET and Expropriation clauses, as well as the elimination of MFN clauses, and to a lesser extent, the use of exception and incorporation of international environmental obligations. Keywords: ISDS, Regulatory Chill, BIT, Mining License, Indonesia DOI: 10.7176/JLPG/139-06 Publication date: January 31st 202

Optimalisasi Peran Badan Usaha Milik Negara (BUMN) pada Era Masyarakat Ekonomi Asean (MEA)

ASEAN Economic Community (AEC) which came into effect since 2015 requires the creativity of the Indonesian society in competing with other ASEAN countries. One of the necessary strategies in dealing with AEC is to optimize the role of the State-Owned Enterprises (BUMN). With regards to the implementation of the AEC, it is important to provide adequate regulation in order to ensure legal certainty for BUMN. The main purpose of this research is to discover form of national regulation that can maximize business opportunity for BUMN in AEC era. It is found that the existing regulations have not yet given business opportunity for BUMN in AEC era. The existing regulations are contradictory one to another especially relating to the status of the state finance inserted as capital into BUMN. In addition, the Constitutional Court decision Number 48/PUU-XI/2013 maintained that the capital inserted into BUMN is considered as part of the state finance. Therefore, this brings about fundamental impact on future cases since the nature of the Constitutional Court decision is erga omnes

Shareholder Claim for Reflective Loss Status and ISDS: Between North American Free Trade Agreement and Central America-Dominican Republic Free Trade Agreement Practices

Consistency and the certainty of law have always been expected to be preserved. However, a disparate decision may still occur, especially regarding interpretation. Investor-State Dispute Settlement Arbitration tribunal faces the same issues, especially when interpreting the derivative claim provision to determine whether losses or damage requirements limit SRL claims under the International Investment Agreement. This article will analyze the disparate decision relating interpretation of derivative claims between NAFTA ISDS cases and DR-CAFTA ISDS cases and the interpretation of derivative claim provisions under IIA to determine the limitation of a claim for SRL in ISDS Arbitration. The objective of this article is to find out how the derivative claim provision under IIA correctly to be interpreted by the law of interpretation. NAFTA tribunal’s ISDS Arbitration has interpreted Articles 1116 and 1117 by considering the following correlated articles to find the context of the treaty, which limits a claim for SRL to be submitted in ISDS Arbitration. However, this interpretation is not found by the Tribunal in DR-CAFTA cases where it held that the other following correlated provision did not lead to limit SRL in ISDS Arbitration. Considering interpretation in NAFTA and DR-CAFTA cases, interpretation of derivative claim provisions shall be conducted carefully and aligned with the rule of interpretation. The treaty text manifests state parties’ intention towards the applicable legal rule under IIA. As such, the existence of derivative claim provision and waiver as preconditional to submission and awarding shall be deemed to limit the claim for SRL in ISDS Arbitration to be submitted directly by the shareholder and prevent the risk of multiple simultaneous proceedings, double recovery and jeopardizing the creditor’s right. Keywords: Investor-State Dispute Settlement, Foreign Direct Investment, International Investment Agreement, Shareholder Claim for Reflective Loss DOI: 10.7176/JLPG/135-13 Publication date:August 31st 202

Indonesia’s Promotion Towards Its Outward Foreign Direct Investment from Transnational Law Perspective

Outward Foreign Direct Investment (OFDI) from developing economies has recently increase which have caught up to become global leaders in several industries. However, Indonesia as one of the developing economies still lacking its OFDI flow. The purpose of this research is to examine on what should the Indonesian government do to promote and coordinate its OFDI. This is done by firstly examining the success of other Asian states in promoting OFDI, and followed by comparing the role of home governments from developing countries in Asia that have better OFDI climate in coordinating their OFDI implementation from transnational law perspective that includes the role of international agreements in practice. Based on the research, it is found that to support OFDI government requires policy and regulation which is followed by coordination. This result support a conclusion that home countries should negotiate terms which protects and facilitate OFDI in investment treaties and Double Taxation Treaties. Home countries should also establish more firm coordination and collaboration internally in order to provide better assistance to their business entities that intend to conduct OFDI. Keywords: Outward Foreign Direct Investment, Transnational Law, Indonesia, Asia DOI: 10.7176/JLPG/122-10 Publication date:July 31st 2022