THE FINALITY OF THE ARBITRAL AWARD RENDERED BY INTERNATIONAL CENTER FOR SETTLEMENT OF INVESTMENT DISPUTES (ICSID)

International Center for Investment Dispute Settlement (ICSID) is one of the institutional arbitration that offers arbitral proceeding for disputing parties. ICSID handles investment dispute arising out between the hosting State (which is also the member State of the ICSID Convention) and foreign investor (who come from the other member State of the ICSID Convention). This institutional arbitration is aimed to accommodate the protection for foreign investors in the hosting State. The main question in this research was the finality of the arbitral award rendered by the ICSID tribunal due to the existence of challenge mechanism within the ICSID Convention. This research is conducted by using normative legal research as the method. It means that the writer collects and puts the materials altogether through literature studies such as laws and regulations, books, journal, and any other valid information that related to the research. The writer applies a normative approach to find out whether or not these challenge mechanism breach the finality principle of ICSID arbitral award. The result of this research, the writer concludes that in order to determine whether or not these challenge mechanism breach the finality principle of ICSID arbitral award, it has to be determined first the absoluteness of the finality principle itself. In the writer�s personal opinion, the finality of the award shall be not strictly interpreted because we also have to consider the correctness of the award