The Impact of the Implementation of the Job Creation Law on Foreign Investment in the Japan-Indonesia Economic Partnership Agreement (IJEPA)

Megha Ayu Lestari (Universitas Pakuan Bogor)
Karina Permata (Universitas Pakuan Bogor)
Karunia Karunia (Universitas Pakuan Bogor)
Serla Yolanda Azahra (Universitas Pakuan Bogor)
Farahdiny Siswajanthy (Universitas Pakuan Bogor)

Formosa Journal of Multidisciplinary Research (FJMR)
Vol. 4 No. 2 (2025): February 2025

This paper examines the impact of the implementation of the Job Creation Law on foreign investment within the framework of the Indonesia-Japan Economic Partnership Agreement (IJEPA). The discussion focuses on two main points: regulatory changes introduced by the Job Creation Law to enhance the attractiveness of foreign investment and its impact on the flow of Japanese investment into Indonesia. This study employs a normative method with a qualitative approach, collecting data through literature reviews and analysis of relevant regulations. The findings reveal that, while the Job Creation Law facilitates foreign investors, several challenges persist in its implementation, including issues of legal uncertainty and bureaucratic obstacles. Therefore, efforts are needed to improve the existing regulatory system, including enhancing transparency and legal certainty, to foster a more conducive investment climate.