Hull Formula and Standard of Compensation for Expropriation in Postcolonial States

M. Ya’kub Aiyub Kadir


ABSTRACT: The contentious issue dealt with economic sovereignty for host states after decolonisa-tion process is foreign investment protection from expropriation by newly independent states. Hull formula has been widely used as an international law standard for compen-sation of expropriation. However, this standard has perceived as an unfair treatment from the former coloniser to its former colony. Even there has been an assumption that the existence of this standard is merely to protect and to maintain the economic dominance of developed states and their multinational companies in the Third World. This issue will be viewed through critical legal studies methodology, to assess the extent to which the ‘hull formula’ standard compatible to current need of postcolonial states. It would contribute to conceptual understanding and to attempt to reformulate the international standard of expropriation based on justice and fairness in postcolonial context.


Hull Formula dan Standar Kompensasi dari Expropiasi di Negara-Negara Poskolonial


ABSTRAK: Setelah progam dekolonisasi negara-negara jajahan, salah satu isu yang mencuat dalam hukum internasional adalah perlindungan investasi asing dari nasionalisasi  negera negara baru merdeka. Dalam hal ini hull formula yang mulanya didesain oleh negara Amerika terhadap Mexico, digunakan sebagai standar kompensasi dari nasionalisasi. Dari perspektif negara negara poskolonial standar ini dianggap tidak adil, bahkan standar ini digunakan hanya untuk memperkuat dominasi negara negara penjajah di bekas jajahannya. Dengan menggunakan metodologi kajian hukum kritis, tulisan ini ingin mengkaji sejauhmana relevansi hull formula untuk diterapkan dalam konteks negara-negara poskolonial. Tulisan ini diharapkan dapat berkontribusi untuk pemahaman konsep tentang standar kompensasi terhadap nasionalisasi di negara negara poskolonial, dan dapat membuka wacana merumuskan kembali standar secara lebih fair dan adil dari perspektif  negara postkolonial.


hull formula; standard of compensation; postcolonial states; international law; hull formula; standar kompensasi; negara negara poskolonial; hukum internasional.

Full Text:



Agora, 1985, What Price Expropriation?, Compensation for expropriation: The Case Law, The American Journal of International Law, Vol. 79.

Amerasinghe, Issues of Compensation For the Taking of Alien Property in the Light of recent Cases and Practice, International and Comparative Law Quarterly, Vol. 41, January 1992.

Brandon, 1960, Recent Measures To Improve the International Investment Climate, Journal Public Law, Vol. 9.

British Columbia, “Expropriation Compensation Board”, derived from On 1 June 2013.

Bintang, S., Pendekatan Sistem Terhadap Hukum Publik Dalam Kontrak Penanaman Modal Internasional, Kanun Jurnal Ilmu Hukum, Vol 17, No 2, 2015.

Bulajic, M., “A Changing World Calls for International Economic Law” in Peter Sarcevic and Hans Van Houtte (Ed.), 1990, Legal Issues in International Trade, Martinus Nijhoff, London.

Byers, M., and Georg Noite, 2003, (Ed.), United States Hegemony and the Foundation of International Law, Cambridge University Press.

Calamita, N.J., 2009, The British Bank Nationalizations: An International Law Perspective, 58 Int'l & Comp. L.Q. 119..

Charzow Factory Case, 1928 PCIJ, (ser. A, No. 17).

Chimni, BS., 1993, International Law and World Order: A Critique of Contemporary Approaches, Sage Publications India Put Ltd.

Gathii, JT., 2009, War's Legacy in International Investment Law, 11 Int'l Comm. L. Rev. 353.

Hilpold , P., The Multilateral Agreement on Investment Are the fears justified?, Eurac Research, A:16 - Artikel2.htm on 4 June 2004.

Hohenveldern, S. I “General Course of Public International Law” 198, Recueil des Course (1986).

Holland & Knight, “International Law Office, Arbritataion-USA”, derived from, 1 June 2004.

Huntington, S. P, 1993, The Clash of Civilization?, Foreign Affairs, 72, No.3. Makarczyk (1998), Principles of the New International Economic Order , Oxford University Press.

Kadir, MYA., The Application of the Law of Self-Determination in Postcolonial Context: A Guideline, East Asia Journal and International Law, Vol. 8, (1) 2016.

Kadir, MYA., The United Nations General Assembly Resolution (UNGAR) as a Source of International Law : Toward a Reformulation of Sources of International Law, Indonesian Journal of International Law, Vol.8, Number 2, January 2011.

Kadir, MYA., Revisiting Self-determination Conflict Settlements in Indonesia Context, Indonesian Law Review, Vol. 5 (2), 2015.

Martin, E. A (ed.), 2002, A Dictionary of Law, Fifth Edition, Oxford University Press.

Petersmann, E.U, 1985, “Charter of Economic Rights and Duties of States” in R.Bernarhardt (ed)., Encyclopaedia of Public International Law, Instalment 8.

Ruppert, Mark, 2000, Ideologies of Globalization, Contending Visions of a New World Order, Routledge, London & New York.

Sacerdoty, G, 1997, Bilateral Treaties and Multilateral Instruments on Investment Protection, Hague Academy, Collected Courses, Vol. 269.

Sampliner, G.H., Arbitration of Expropriation Cases Under U.S. Investment Treaties –A Threat to Democracy or the dog that did not bark?, ICSID Review, Foreign Investment Law Journal, Vo. 18 Number 1 Spring 2003.

Schachter, O., 1984, Editorial Comment, Compensation for expropriation, The American Journal of International Law, Vo. 78, p. 121-129.

Smith, P.J., Determining the Standard Compensation for the Expropriation of Nationalised Assets: Themes for the Future, 23 Monash U. L. Rev. 159 1997.

Sornarajah M., 1994, The International Law on Foreign Investment, Cambridge University Press.

Sornarajah M, 1979, Compensation for Expropriation: The Emergence of New Standards, Journal World Trade Law Vol. 13, 108.

Texaco v. Libya case, 1977, 53 I.L.R. 389; (1978) 17 I.L.M 1

The Charter of Economic Right and Duties of States 1974.

Verwey, D. and N.J Schrijver, 1984, The Taking of Foreign Property under International Law: A New Legal Perspective, 15 Ned, Yb, Int’l. Law, vol. 44.

Vicuna, O., 1975, “The International Regulation of Valuation Standards and Processes: A Re-examination of Third World Perspective” in Lillich (Ed.), 3 The Valuation of Nationalized Property in International Law.


  • There are currently no refbacks.

KANUN : Jurnal Ilmu Hukum


ISSN (Print): 0854 – 5499

ISSN (Online): 2527 – 8428


Published by: 

Redaksi Kanun: Jurnal Ilmu Hukum

Fakultas Hukum Universitas Syiah Kuala

Jl. Putroe Phang No. 1, Darussalam, Banda Aceh 23111

Telp. (0651) 7552295; Faks. (0651) 7552295



Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.