Revealed: Australian miner used arbitration threat to upend Indonesian environmental law
Under the country’s prior military dictatorship, Australian Newcrest Mining plus 12 other companies were granted ‘exemptions’ from Indonesia’s law banning environmentally destructive form of mining in protected forest areas. When the newly democratized country tried to enforce the rule, the companies threatened to sue under ISDS.
Officials did the math and calculated that if the companies sued, the state stood to lose up to 22.7 billion, about half of its entire 2003 budget.
The mining ministry’s chief lawyer: the threat of “arbitration is the only reason” the government caved in to the companies’ demands.Full article: https://news.mongabay.com/2016/09/revealed-australian-miner-used-arbitration-threat-to-upend-indonesian-environmental-law/