A. HistoryICSID (International Centre for Settlement of Investment Disputes the) is an entity that was born the World Bank. The Convention which established the agency, the ICSID Convention (Convention on the Settlement of Investment Dispute Between States and Nationals of Other States), or sometimes called the Washington Convention or the World Bank Convention, signed in Washington DC, March 18, 1965. ICSID arbitration board or the Centre based in Washington and is affiliated with the World Bank. The Convention entered into force on 14 Otober 1966, a month after 20 countries ratify it.Formation of the Convention is as a result of the economic situation in the world-1960s waktu1950 is particularly dikala some developing countries to nationalize or expropriate foreign companies that are within its territory. This action resulted in the economic conflicts that can be turned into a political dispute, or even open conflict (war).Among the cases that directly affect the nationalization and moving the World Bank established the Convention is a case of nationalization of French companies in Tunisia. The case began with an act of Parliament passed Law Tunisia nationalization of lands owned by foreigners (especially France) on May 10, 1964. Some time later, after the case was abated, and the World Bank initiated the establishment of an international arbitration body which will deal with investment disputes between foreign investors with the other host countries. These UN efforts to bring the results that with the signing of the Convention on the Settlement of Disputes Between States Investement and Nationals of Other States.There are two main objectives the establishment of this convention. The first, to bridge the gap or fill in the gaps in the legal effort to resolve cases of investment by providing a specific mechanism in the form of arbitration or conciliation facilities. Second, encourage and protect the flow of capital from developed countries to our country (developing countries). The first objective of this convention reflected the role of the Centre (ICSID). Authority and the agency is specifically limited to any investment that it is one of the investment recipient country (host state). When a dispute arises, the Centre will establish an arbitration or conciliation panel to handle it. Furthermore, the role of the Centre is overseeing the trial and gave his net rules of procedural law.In the early days of this convention was growing, although many countries have ratified, lack of wind. Since the convention into force in 1966, ICSID had practically idle. Only in December 1970, which means four years later, a relatively long time to wait a long enough investment disputes arise, arbitration body to handle his first case.Until 1981, only 9 cases entrusted to ICSID arbitration body to resolve. In 1981-1982, incoming cases rose sharply. There are 13 cases. Ten cases with respect to arbitration, conciliation and 10 second decision concerning revocation. And the current 10 cases are in the process of completion, 12 have been completed and the rest is still uncertain.Duration and dispute resolution procedures to resolve any dispute required an average of 2 years. However, as was the case in dispute PT Amco (U.S. investors) opposed to the government of the Republic of Indonesia submitted to ICSID arbitration board in January 1981, a new dispute was completed in December 1992 (12 years).Less popularity of arbitration has been concluded also by the results of an international arbitration seminar in Rome in 1982. The seminar participants agreed that the arbitration body is ignored, and many investors are not aware of / know the existence of ICSID arbitration body. So that when a when they encounter problems / disputes, arbitration body container as a means of settlement of a dispute they recommend is another arbitration body, particularly the arbitration body according to the ICC.However, this trend will adulthood increasing the role of ICSID arbitration board is shown in the following. First, in some national legislation, the requirements of ICSID arbitration board appointment as arbitration body which will deal with disputes arising from the contractual foreign investment has been included in it. Wisdom of such laws was conducted among others by Afghanistan, Congo, Tunisia and Niger.Another thing that encourages the use of ICSID is to the agency agreements / contracts (bilateral) foreign investment to insert arbitration clauses that refer to ICSID arbitration body menyelesaiakan dispute. These model contracts have amounted to about 87.Another tendency is the role played by the World Bank in providing financial aid for development projects in many countries. His role is to monitor or supervise a contract made for the implementation of the project. Here the World Bank can only recommend to the countries concerned in making its contracts and by means of ICSID arbitration.ICSID Convention is intended to handle the settlement of disputes between investors and host countries. Sine quo non conditio applicable to a dispute to ICSID arbitration body is covered in this agreement.B. MembershipCountries that could be a member of the ICSID Convention is that every member of the World Bank. But countries are not members of the World Bank can become a member of the convention the origin country is a member of the Statute of the International Court of Justice. Until 1993, 105 countries have become members at this convention.C. Organizational StructureAgency did not implement the ICSID proceedings arbitration or conciliation. The nature of these bodies as well as a secretariat. He manages and provides facilities to the parties who want to resolve the dispute through arbitration or capital investment conciliation. In this case the institution in question are instituted ICSID arbitration and conciliation.ICSID is managed by an Administrative Council (Administrative Council). Each participating country has a representative convention and has one vote. This council has a chairman ex officio, the President of the World Bank. Lead agency is the organizational structure of ICSID Secretary General (Secretary). He serves as registrar (registrar or clerk).ICSID maintains a list of names to be included in an arbitration or conciliation panel. Each state party convention to appoint an arbitrator or conciliator 4 people in each of the panel list. They can be nationals or foreigners. Chairman of the Board may appoint Admintratif 10 people on each panel.D. ConclusionTo summarize from the above review, that the ICSID arbitration body is different from the institution or other arbitration bodies. This is evident in:A. ICSID• Creating a center of international investment disputes.• The goal is to facilitate conciliation and arbitration of investment disputes between States parties to the Convention and the citizens of countries other signatories to the Convention.• Internationally give special status to the individual to be the subject of international economic law.• Characteristically institutional as embodied in an institution.2. The terms of an ICSID dispute can be submitted to:• The parties must agree to submit their dispute to ICSID.• Disputes between states should be signatories to the Convention or the state organs and citizens signing the convention.• Disputes arising from an investment.3. ICSID Arbitration (the agreement)• Ratification of a country signatory to the convention does not necessarily lead to an agreement to resolve the ICSID arbitration.• A convention required signatory countries to resolve this dispute in ICSID arbitration only if the country is specifically agreed to take a particular dispute or particular types of disputes to ICSID.• A country may decide to resolve a dispute with an arbitration clause to non area-specific investment is not tied to ICSID (article 25 paragraph (4) of the Convention), for example: Saudi Arabia, Papua New Guinea, and Guyana.• ICSID arbitration has exclusive jurisdiction, enforced by the courts of the country aside from the authority of the proposed investment disputes to ICSID.• There is no legal remedy for a provisional decision.• There is no reconsideration of the verdict.4. ICSID ruling• It is binding and can not be reviewed by the court.• A signatory to the Convention shall recognize and enforce ICSID as carrying out a final judgment of a trial judge in the country.• In 1978 there were additional protocol based on the additional protocol which is the ICSID could be used for non-member countries and not only investment issues but also issues of international trade.• ICSID is flexible, meaning that the parties are free to determine which laws are adopted.5. Choice of Law• The parties are free to designate which legal rules will be followed by the tribunal.• If there is no agreement, the court will use the law of state parties to the Convention for the dispute (including the rules of the Inter Law Procedure Law) and rules of international law similar that can be applied.6. In the ICSID there are 2 mechanisms, namely:• Correction: If there are errors in the administration.• Annulment (cancellation): A party may request cancellation of a decision on the grounds that;- The court (arbitration panel) are not formed naturally.- The court clearly acted beyond the authority they have.- A member of the corrupt court.- There is a serious deviation from the fundamental rules of procedure.- The decision does not explain the reasons
