Investment Law in Indonesia: a Preview of International Lens

Investment Law in Indonesia: a Preview of International Lens

By: Evoryo Carel Prabhata, S.H.

Hello, Selaras Friends!

International investment law is a complex and ever-evolving field of law that governs the relationship between foreign investors and host states. It is a body of law that seeks to protect foreign investors from unfair or discriminatory treatment by host states, while also providing host states with the ability to regulate foreign investment in Indonesia

The primary purpose of international investment law is to protect foreign investors from unfair or discriminatory treatment by host states. This includes protecting investors from expropriation, nationalization, or other forms of interference with their investments. It also seeks to ensure that foreign investors are treated in a fair and equitable manner,

In Indonesia, international investment law is governed by the Investment Law of Indonesia (ILI). The ILI was enacted in 1967 and has been amended several times since then. The ILI provides a comprehensive framework for foreign investment in Indonesia, including provisions on the protection of foreign investors, the promotion of foreign investment, and the regulation of foreign investment.

In addition to providing foreign investors with protections, the ILI also provides host states with the ability to regulate foreign investment in Indonesia. This includes the ability to impose restrictions on foreign investment, such as limits on the amount of foreign investment that can be made in certain sectors. The ILI also provides host states with the ability to impose taxes and other fees on foreign investors.

Read More: Investment in Indonesia 101

Indonesian Investment Law

Investment Law in Indonesia is regulated by the Investment Law No. 25 of 2007. This law is designed to provide a legal framework for foreign and domestic investments in Indonesia. It provides a comprehensive set of rules and regulations for foreign and domestic investors, including the establishment of a one-stop service for investment licensing and the establishment of a National Investment Coordinating Board (BKPM).

The Investment Law provides a number of incentives for foreign and domestic investors, including tax incentives, land acquisition incentives, and other incentives. It also provides for the establishment of a special economic zone (SEZ) in certain areas of the country, which provides additional incentives for investors.

The Investment Law also provides for the establishment of a dispute resolution mechanism, which allows investors to seek redress for any disputes that may arise between them and the government. This mechanism is designed to ensure that investors are treated fairly and that their rights are protected.

The Investment Law also provides for the establishment of a foreign investment protection agency, which is responsible for monitoring and enforcing the Investment Law. This agency is responsible for ensuring that foreign investors are treated fairly and that their investments are protected.

Finally, the Investment Law also provides for the establishment of a foreign investment promotion agency, which is responsible for promoting foreign investment in Indonesia. This agency is responsible for providing information and assistance to foreign investors, as well as providing assistance in the establishment of foreign investment projects.

Read More: Cryptocurrency in Indonesia Market

Importance of Business Consultant

The importance of business consultation services in Indonesia cannot be overstated. With the ever-changing landscape of the global economy, businesses need to stay ahead of the competition and remain competitive. Business consultants can provide businesses with the expertise and guidance they need to succeed. By working with a business consultant, businesses can gain the insight and guidance they need to stay competitive and reach their goals.

With the ever-changing landscape of the global economy, it is essential for businesses to stay ahead of the competition and remain competitive. This is where business consultation services can be invaluable. Business consultation services provide businesses with the expertise and guidance they need to stay ahead of the competition.

By working with a business consultant, businesses can gain insight into their current operations and develop strategies to improve their performance. Business consultants can help businesses identify areas of improvement, develop new strategies, and create plans to reach their goals.

Business consultants can also provide businesses with the guidance they need to stay compliant with regulations and laws. They can help businesses understand the legal requirements of their industry and ensure they are following all applicable laws. This can help businesses avoid costly fines and penalties.

Sources:

Indah Sari, “Syarat-Syarat Penanaman Modal Asing (PMA) di Indonesia Menurut Undang-Undang Nomor 25 Tahun 2007 tentang Penanaman Modal” (2020) 10:2 Jurnal Ilmiah Hukum Dirgantara.

Rr Riyani Yakti W, “KTT G20, Jokowi Beberkan IKN Buka Peluang Investasi Infrastruktur Rp 323 Triliun”, Tempo (15 November 2022), online: <https://bisnis.tempo.co/read/1657238/ktt-g20-jokowi-beberkan-ikn-buka-peluang-investasi-infrastruktur-rp-323-triliun>.

Mas Rahmah, “Hukum Investasi”, Kencana: Jakarta (2020)

BPS, “BPS 270.20 Juta Hasil SP20”, online: https://www.bps.go.id/news/2021/01/21/405/bps–270-20-juta-penduduk-indonesia-hasil-sp2020.html.

Image source: Pixabay.com

Editor: Bambang Sukoco, S.H.

Leave a Replay