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All Journal Priviet Social Sciences Journal
Febrihadi Suparidho
University of Mataram
Economics, Econometrics & Finance Education Environmental Science Law, Crime, Criminology & Criminal Justice Social Sciences

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Normative analysis of the legal construction of minimum foreign direct investment requirements under Government Regulation No. 28 of 2025 Septira Putri Mulyana; Febrihadi Suparidho
Priviet Social Sciences Journal Vol. 6 No. 6 (2026): June 2026
Publisher : Privietlab

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55942/pssj.v6i6.1136

Abstract

Government Regulation No. 28 of 2025 on Risk-Based Business Licensing reinforces the regulatory framework concerning minimum investment thresholds for Foreign Direct Investment (FDI) with the aim of enhancing investment quality and restructuring the national economic landscape. The minimum investment requirement stipulated in Article 212 paragraph (2) raises several normative issues related to its consistency with the fundamental principles of investment law, legal certainty, and the regulatory objectives of the risk-based licensing reform. This study seeks to examine the legal construction of the minimum investment requirement for FDI in Government Regulation No. 28 of 2025 and to assess its conformity with Indonesia’s investment law principles. This research employs a normative legal method, using statutory and conceptual approaches. Data were analyzed qualitatively through legal interpretation and principles-based analysis. The findings indicate that the minimum investment requirement possesses a ratio legis as a mechanism for selecting qualified foreign investors; however, it still presents ambiguities in relation to the principles of non-discrimination and proportionality within investment law. These results underscore the need for normative harmonization and the development of clearer implementing guidelines to strengthen legal certainty for business actors.
Co-Authors Septira Putri Mulyana