International Journal of Law, Crime and Justice
Vol. 2 No. 2 (2025): June : International Journal of Law, Crime and Justice

Legal Protection for Foreign Investors at Normative and Implementation Levels in Indonesia

Hasim Sukamto (Unknown)
Hulman Panjaitan (Unknown)
Paltiada Saragi (Unknown)



Article Info

Publish Date
26 Apr 2025

Abstract

Foreign direct investment (FDI) has a strategic role in Indonesia's economic development. However, the realization of foreign investment is not free from challenges related to legal certainty and protection. This study aims to analyze legal protection for foreign investors in Indonesia, both in terms of applicable legal norms and from the aspect of implementation in the field. Through a literature review, information was collected from various sources in the form of journals, articles, and relevant laws and regulations to gain a broad understanding of legal protection for foreign investors at the normative and implementation levels in Indonesia. The results of the study indicate that Indonesian laws and regulations, especially Law No. 25/2007 concerning Investment, various Bilateral Investment Treaties (BITs), and FTAs ​​provide a comprehensive legal protection framework for foreign investors. In the field, legal uncertainty still arises due to overlapping regulations, frequent policy changes, and different interpretations between institutions. Slow and less transparent licensing bureaucracy, as well as the risk of extortion practices, reduce the attractiveness of investment. Reform efforts such as simplifying licensing through OSS, establishing BKPM as a one-stop shop, and ratifying the Omnibus Law on Job Creation have shown progress in increasing certainty and ease of investment.

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Journal Info

Abbrev

IJLCJ

Publisher

Subject

Law, Crime, Criminology & Criminal Justice

Description

law and social politics, both theoretical and empirical. The focus of this journal is on studies of civil law, criminal law, constitutional law, international law, procedural law and customary law, politics and social ...