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

https://doi.org/10.35912/gams.v1i1.3370
Published: Aug 26, 2025

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.

Conclusion: Investment law strengthens legal certainty, boosts investor confidence, and supports Indonesia’s sustainable economic recovery through continuous reforms.

Limitations: This study is limited to normative legal analysis with secondary data, excluding empirical evidence and international comparative perspectives.

Contribution: Government efforts—regulatory reforms, legal enforcement, and infrastructure—foster a conducive investment climate. Continuous legal updates are essential to sustain investor confidence, ensure effectiveness, and support Indonesia’s economic growth.

Keywords:
1. Economic Recovery
2. Foreign Direct Investment (FDI)
3. Indonesia's Economic
4. Investment Law
5. Legal Certainty
Authors:
1 . Richart Sahatatua
Universitas Singaper Bangsa Karawang, Indonesia
2 . Tri Setiady
Universitas Singaper Bangsa Karawang, Indonesia
3 . I Ketut Astawa
Universitas Singaper Bangsa Karawang, Indonesia
4 . Teuku Syahrul Ansari
Universitas Singaper Bangsa Karawang, Indonesia
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How to Cite
Sahatatua, R., Setiady, T. ., Astawa, I. K. ., & Ansari, T. S. . (2025). The role of investment law in Indonesia’s economic recovery efforts . Global Academy of Multidisciplinary Studies, 1(1), 1–11. https://doi.org/10.35912/gams.v1i1.3370
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Issue & Section
Vol. 1 No. 1 (2024): August
Articles
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This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

References

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    Pardede, D. K. (2023). The Role of Legal Politics in Creating Legal Reform in Increasing Foreign Investment in Indonesia. Strata Law Review, 1(2), 136-143.

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  2. Afriyani, N., Indrayani, I., Indrawan, M. G., Wibisono, C., & Ngaliman, N. (2023). The influence of training, discipline, and innovation on the performance of members of the Regional National Crafts Council (Dekranasda) in Tanjungpinang City: A quantitative study. Journal of Multidisciplinary Academic Business Studies, 1(1), 53-70.
  3. Aidy, W. R., & Cardenas Jr, A. (2025). Digital Taxation on Over-The-Top Services: A Comparative Study of Regulations in Indonesia and the ASEAN Region. Media Iuris, 8(2). doi:https://e-journal.unair.ac.id/MI/article/view/71267
  4. Arwani, A., & Priyadi, U. (2024). The role and contribution of the new institutional economics in economic system performance. Jurnal Simki Economic, 7(1), 271-288. doi:http://dx.doi.org/10.29407/jse.v7i1.508
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  8. Elistyawati, I. A., Made Wendri, I. G., Sukmawati, N. M. R., & Susyarini, N. P. W. A. (2022). Inovasi Kuliner Lokal Ketela Ungu sebagai Breakfast Di Desa Wisata Sangkan Gunung. Jurnal Pemberdayaan Ekonomi, 1(1), 35-42. doi:https://doi.org/10.35912/jpe.v1i1.926
  9. Ferguson, D., Krupa, T., & Laux, R. (2025). Tax Administration Quality and Foreign Investment in Developing Countries: Evidence from Participation in Tax Inspectors Without Borders. Available at SSRN 4136807.
  10. Hidayat, M., & Defitri, S. Y. (2024). Digitalization and the Changing Landscape of Tax Compliance (Challenges and Opportunities). Accounting Studies and Tax Journal (COUNT), 1(1), 131-139. doi:http://dx.doi.org/10.62207/c2gyc030
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  38. Widijowati, D. (2023). Economic Analysis of Law: Strengthening the Legal Framework for Development. Research Horizon, 3(1), 19-35. doi:https://doi.org/10.54518/rh.3.1.2023.630-639
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  40. Yuwono, T., Wiryawan, B. A., & Yuzuru, S. (2025). The Effect of regulatory governance system on investment growth in decentralized Indonesia. Frontiers in Political Science, 7, 1630368. doi:https://doi.org/10.3389/fpos.2025.1630368
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