Protection of Foreign Investors in Foreign Investment Activities and its Implications to the Country

Abstract

In the interest of increasing national and economic development, Indonesia needs various kinds of support from all aspects. One of them is the presence of foreign investors. However, Indonesia is considered to not fully support the presence of foreign investors, so there are many investment constraints that have not been addressed comprehensively. To fulfill these interests, the Indonesian government formulated policies regarding investment and legal protection provided to foreign investors through Law Number 25 of 2007 concerning Investment. This study aims to determine legal protection and the implications of foreign investment activities in Indonesia. This study uses a normative juridical approach. The primary source of legal material is Law Number 25 of 2007 concerning investment. The source of secondary legal materials uses relevant literature. Data collection were done using the library study method. Data analysis were done using deductive analysis techniques. The data presentation technique uses a qualitative descriptive technique. The results of the study stated that legal protection for foreign investment (PMA) in Indonesia according to Law Number 25 of 2007 concerning investment is the application of the principle of equality for foreign and foreign investors. Legal protection is also given for actions of nationalization, acquisition of ownership, transfer of assets, transfers, and repatriation. Foreign investment has an important role in Indonesia to increase economic growth and increase national development.
 Keywords: legal protection, investment, foreign, implication