Problematika Hukum Peningkatan Investasi Asing Di Indonesia (Legal Problems of Increasing Foreign Investment in Indonesia)

Abstract

The surge in foreign investment in Indonesia represents a consequential phenomenon in the nation's economic development. However, alongside the escalating influx of foreign investment, a myriad of legal issues has surfaced, demanding resolution. One pressing challenge is the ambiguity surrounding regulations concerning foreign investment. The disparity between governmental policies and their effective implementation frequently engenders uncertainty for investors. Furthermore, the intricate and convoluted licensing procedures often impede foreign investors endeavoring to enter the Indonesian market. This research endeavors to identify and analyze the legal quandaries associated with the upswing in foreign investment in Indonesia. The study adopts a literature review research approach with a specific focus on legal analysis related to the escalating foreign investment. Employing a normative juridical approach, the research utilizes secondary data, particularly primary legal materials. Data collection involves an exhaustive review of pertinent literature, primarily referencing relevant reference books. Qualitative descriptive data analysis is undertaken to furnish a systematic and comprehensible overview of the legal predicaments intertwined with the surge in foreign investment in Indonesia. The research findings encapsulate the evolutionary trajectory of regulations governing foreign investment in Indonesia, shedding light on the role of Freeport-McMoRan, environmental repercussions, and assertions of economic benefits. Legislation such as Law Number 25 of 2007, Law Number 40 of 2007, and notably, Law Number 6 of 2023, establish a substantial legal framework anchored in the principle of equal rights for investors. Supplementary regulations, exemplified by Regulation Number 7 of 2021, mirror the government's tangible efforts to bolster foreign investment through streamlined permitting processes and fiscal incentives