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All Journal Jurnal JURISTIC (JuJUR)
Sri Purwaningsih
Universitas 17 Agustus 1945 Semarang
Law, Crime, Criminology & Criminal Justice

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Penanaman Modal Asing Di Indonesia Cahyo Adhi Nugroho; Sri Purwaningsih
Jurnal JURISTIC Vol 6, No 03 (2025): Jurnal JURISTIC
Publisher : PSHPM Untag Semarang

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.56444/jrs.v6i03.7049

Abstract

This research examines the legal framework and implementation of Foreign Direct Investment (FDI) in Indonesia within the context of national development. The primary issue addressed is the distinction between direct and indirect investment and the legal requirements for foreign entities operating within the Republic of Indonesia. Using a normative judicial approach with descriptive analysis, the study gathers data from primary legal sources, including the 1945 Constitution, Law No. 25 of 2007, and Law No. 40 of 2007. The findings indicate that FDI must generally take the form of a Limited Liability Company (PT) under Indonesian law. Successful investment realization depends on legal certainty, bureaucratic efficiency, and a conducive business climate. The research concludes that while direct investment requires a physical presence and risk-bearing by the investor, indirect investment focuses on short-term capital gains through the capital market. The implication is that Indonesia must maintain stability, predictability, and fairness in its investment regulations to remain competitive in the global economy and the ASEAN Economic Community.
Co-Authors Cahyo Adhi Nugroho