Negotiations with the Government of Indonesia continue, and it is expected that a solution may be found in the near future. In addition to those investment disputes in which it is involved as insurer, MIGA, in accordance with its Convention, uses its good offices to encourage the settlement of other disputes between investors and member countries. MIGA staff experienced in resolving conflicts relating to foreign investment provided legal assistance and guidance during the year to parties from numerous countries that sought creative approaches to the resolution of their investment-related disputes. MIGA's objective in these cases is to resolve disputes before they require formal arbitration. At any given time, MIGA's legal staff may be consulting on as many as a dozen investment disputes around the world.
Mediation is normally a more expeditious form of dispute resolution than arbitration.
However, when the issues are complex or a host country is challenged to rethink substantial elements of its economic policies, settlement talks can drag on for several years until the parties become comfortable enough with the results of their efforts to strike a deal. The cases that are now advancing toward resolution suggest that MIGA's mediation facilities are filling a gap in international law remedies currently available to foreign investors in their disputes with host countries. Diplomatic solutions are not practical for some, and formal arbitration may be too costly for others. Mediation, which is voluntary, informal, and inexpensive, is increasingly recognized as an attractive alternative for resolving investment disputes. Upon the request of member states, MIGA advises on the negotiation of bilateral investment treaties and other investment-related issues.