The Most Favoured Nation (MFN) principle is one of the basic principles of international agreements in regulating each WTO member with the aim of creating global economic liberalism. Indonesia is one of the developing countries that is a member of the WTO which automatically applies The Most Favoured Nation (MFN) principle and is one of the principles governing capital investment as stated in Law Number 25 of 2007 concerning Capital Investment. However, on the one hand, international agreements have their own polemics because in general many say they favor western countries (developed countries) and tend to be more detrimental to developing countries. In overcoming this situation, the middle path theory provides a view regarding Foreign Investment (PMA) which states that foreign investment has positive and negative impacts on economic development, especially for developing countries, so there is a need for a filter in applying The Most Favoured Nation (MFN) principle so that interests national economy continues to be achieved. In this writing, the author wants to analyze the role of the regime of Law Number 25 of 2007 concerning Investment in implementing The Most Favoured Nation (MFN) principle by focusing on what Indonesia should choose if there is a dilemma in choosing between upholding the principles of international agreements or interests. national economy in implementing foreign investment regulations.
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