Richart Sahatatua
Universitas Singaper Bangsa Karawang, Indonesia

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The role of investment law in Indonesia's economic recovery efforts Richart Sahatatua; Tri Setiady; I Ketut Astawa; Teuku Syahrul Ansari
Global Academy of Multidisciplinary Studies Vol. 1 No. 1 (2024): August
Publisher : Goodwood Publishing

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.35912/gams.v1i1.3370

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.