The role of investment law in Indonesia's economic recovery efforts

Published: Jun 19, 2024

Abstract:

Purpose: This study examines the role of investment law in Indonesia's economic recovery efforts, particularly under Law No. 25 of 2007. Indonesia, as a developing country, emphasizes high economic growth as a measure of success in enhancing societal welfare. Investment, through capital investment, is crucial for increasing capital stock, production capacity, and economic growth, thereby creating jobs.

Methodology: The study uses a normative legal research method with an analytical descriptive approach, analyzing regulations related to Law No. 25/2007, relevant literature, and data from the internet.

Results: The findings indicate that legal certainty significantly influences investment decisions. A country with clear, fair, and well-enforced laws attracts more investors, which is essential for sustainable economic growth. Recent studies highlight the benefits and challenges of foreign direct investment (FDI) in Indonesia.

Contribution: The government's efforts to improve the investment climate include revising regulations, enhancing legal enforcement, and developing infrastructure. These measures aim to provide a conducive environment for both domestic and foreign investors. However, continuous legal reforms are necessary to address implementation challenges and ensure that investment laws remain relevant and effective. The study concludes that investment is vital for Indonesia's economic advancement and underscores the need for ongoing improvements in legal and regulatory frameworks to maintain investor confidence and drive economic development.

Keywords:
1. Economic Recovery
2. Indonesia's economic
3. Investment Law
4. Legal Certainty
5. Foreign Direct Investment (FDI)
Authors:
1 . Richart Sahatatua
2 . Tri Setiady
3 . I Ketut Astawa
4 . Teuku Syahrul Ansari
How to Cite
Sahatatua, R., Setiady, T., Astawa, I. K., & Ansari, T. S. (2024). The role of investment law in Indonesia’s economic recovery efforts. Journal of Multidisciplinary Academic and Practice Studies, 2(3), 213–215. https://doi.org/10.35912/jomaps.v2i3.2218

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