Foreign Investment In Indonesia Research Articles

The complexity of disaster impacts: An example on foreign investment in Indonesia

The complexity of disaster impacts: An example on foreign investment in Indonesia

POLITICAL REFORM OF NATIONAL ECONOMIC LAW (Analysis of the Impact of Globalisation on National Investment Law)

<em>The objective of this study is to investigate the relationship between investment law and state sovereignty, and subsequently formulate a framework for future national investment law policies aimed at promoting economic growth and safeguarding sovereignty. The present study is characterized as normative in its methodology, employing both a statutory and conceptual approach. The findings indicate that investment plays a significant role in enhancing both the economy and employment expansion. Governments globally are engaged in a competitive effort to establish an improved business climate that facilitates investment activities. However, it is imperative to restrict this endeavor and prioritize domestic capital, as evidenced by the 1966 MPRS Decree. This directive provides guidance to Indonesian policymakers that foreign investment or aid should not be disregarded for its role in developing the struggling Indonesian economy. Nevertheless, it is crucial to first rely on the potential of domestic resources as a means of generating development funds. This approach ensures that the availability of foreign funding sources does not lead to dependence on external parties. Furthermore, foreign sources of funds must be utilized for the benefit of the domestic economy. Foreign investment in Indonesia must also be subjected to limitations in this context</em>

Legal Protection for Foreign Investment in the Disruptive Era in Indonesia

Objective: In this section, the primary goal and purpose of the discussion will be outlined. The objective is to examine the challenges and opportunities presented by the era of disruption, specifically in the context of foreign investment in Indonesia.
 
 Methods: This section will detail the approaches and strategies used to address the challenges identified in the objective. It will cover government policies, legal frameworks, and collaborative efforts between different entities to create a conducive environment for foreign investors.
 
 Results: Under this heading, the outcomes of the implemented methods will be presented. This may include the impact of government policies, improvements in investment security, and any notable changes in the investment landscape in Indonesia.
 
 Conclusion: The conclusion will summarize the key findings and insights derived from the examination of the era of disruption and its implications for foreign investment in Indonesia. It will also highlight the importance of ongoing cooperation between the government, regional authorities, and local communities for sustaining a secure investment environment.

ANALISIS DETERMINAN REALISASI PENANAMAN MODAL ASING DI INDONESIA PERIODE 2000Q1:2022Q4

As a developing country, foreign investment plays an important role in developing the economy in Indonesia. It can increase economic growth, create jobs, and open up pathways for the transfer of technology and knowledge from abroad. This study aims to examine the factors that can affect the realization of foreign investment in Indonesia. The variables that will be used in the analysis of this study consist of foreign investment realization, economic growth rate, natural resources, labor force and real exchange rate. This research will use the Error Correction Model method as a research analysis tool. According to the results of short-term analysis, natural resources can affect the realization of foreign investment into Indonesia positively and significantly. In addition, real exchange rate depreciation can also encourage an increase in realized foreign investment in Indonesia. According to the results of long-term analysis, economic growth rate, natural resources, labor force and real exchange rate are known to have a significant positive influence on the realization of foreign investment in Indonesia.

Analysis of the Effect of Global Uncertainty and Financial Development on Foreign Direct Investment in Indonesia

The world is currently facing unprecedented uncertainty in social, political, and economic aspects, which continuously evolve every year owing to extraordinary events that impact countries worldwide. In contrast, The growth strategy of a country organizes must include Foreign Direct Investment (FDI), especially in Indonesia. The fluctuation in foreign investment in Indonesia indicates that foreign investors also consider growing global uncertainty alongside the development of Indonesia’s financial sector. This study examines the relationship between global uncertainty and financial development on FDI in Indonesia from 1997 to 2020 using the Autoregressive Distributed Lag (ARDL) method. The results indicate that global uncertainty significantly negatively impacts Indonesia’s FDI in the short and long terms. However, global economic policy uncertainty positively influences Indonesia’s FDI in the long term. This indicates that Indonesia has become an attractive alternative for foreign investors during global economic policy uncertainty. Regarding financial development, the amount of credit provided by the domestic banking sector to the private sector in Indonesia positively influences Indonesia’s FDI in both the short and long terms. This demonstrates that Indonesia’s financial condition and infrastructure can determine foreign investors’ decisions to invest in Indonesia.

The Urgency of Indonesian Omnibus Law Implementation Related to Foreign Investment

Investment is one of the driving means of strengthening the country's economy. One of the expected ways to increase investment is through foreign investment. Various regulatory measures have been carried out by evaluating and analyzing regulations and policies related to the licensing process for foreign investment. A new legal breakthrough is in the form of the enactment of the Omnibus Law on the Job Creation Law that is being pursued by the government aims to make it easier for foreign investors to obtain a permit. The formulation of problems that can be studied include how the omnibus law applies to simplifying licensing in an effort to facilitate the licensing process related to foreign investment. This study aims to examine the urgency of the implementation the Omnibus Law to simplify the licensing process in an effort to facilitate foreign investment in Indonesia. This research is a normative legal research, which uses primary, secondary, and tertiary legal materials. The results of the study show that efforts to simplify the licensing process for foreign investment in Indonesia become a reference for the government with foreign investors in facilitating sustainable development efforts in the tourism sector which aims to increase large amounts of investment, the availability of jobs, and is expected to improve the country's economy. So in the application of the Omnibus Law, it is expected to be able to accommodate interests that aim to prosper the community.

Determinants of Foreign Direct Investment from China to Indonesia

This study identifies and analyzes the determinants influencing China's foreign direct investment level in Indonesia. The independent variables in this study are economic growth, inflation rate, wage rate, exchange rate, and export value. The data used is time series data from 2000 - 2016. The analytical method used is multiple linear regression. The study results show that wage and inflation rates significantly affect the foreign investment level from China to Indonesia. The variables of economic growth, exchange rates, and exports do not affect the level of foreign investment from China to Indonesia. The simultaneous test results significantly influence all the independent variables used in this study. The implication for foreign direct investment is that the government must increase foreign investment in Indonesia to increase economic growth by improving the investment climate in the country by providing several facilities to assist foreign investors so that investors feel safe investing their capital in Indonesia and with synergy with monetary policy in lowering interest rates to increase investor interest in investing.

The Role of Legal Politics in Creating Legal Reform in Increasing Foreign Investment in Indonesia

Investment is currently regulated in the Job Creation Law. Still, previously, investment regulations were contained in Law Number 25 of 2007 concerning Capital Investment, whereas Law Number 25 of 2007 reflected that investment regulations had two sides. One side of investment will open up state income and so on. Meanwhile, on the other hand, by opening up investment opportunities, various facilities and conveniences will be offered to investors in order to attract investment interest in a country. This research aims to analyze the Ciptaker Law as a regulation that amends the Investment Law using a participatory paradigm so as to provide analysis regarding investment regulations in Indonesia. This research is a type of normative legal research that bases its approach on legislation and conceptualization. The results of this research conclude that the Job Creation Law related to investment aims to adjust various regulatory aspects related to improving the investment ecosystem, facilitating and accelerating national strategic projects oriented towards national interests based on national science and technology guided by Pancasila ideology. Regarding these conditions, foreign investment can provide legal protection and legal certainty based on established law.

The Effect of Wages, Infrastructure, and Political Stability on Foreign Investment in Indonesia

The aim of the this research is to examine the impact of wages, infrasrtructure, and political stability on foreign investment in Indonesia. The data used is secondary data in the form of panel data covering 34 province in Indonesia from 2017 to 2021. Dynamic panel regression estimation is used in this work to analyze statistical data using Stata 13 and Eviews 10 software. According to the study’s partial findings wages have positive effect but not significantly on foreign investment in short and long term. In addition, infrastructure has a positive and significant impact on foreign investment both the long and short term. Meanwhile political stability was found to have a negative but insignificant effect on foreign investment, both in short and long term. However, wages, infrastructure, and political stability simultaneously have a significant effect on foreign investment in Indonesia. Therefore, according to this study, the government must continue to increase infrastructure development. In addition, workers and employers must take into account their needs when setting wage rules. Even though the nation is in a dynamic condition, another component that must be considered is related to a solid democracy.

EVALUASI DAMPAK PENANAMAN MODAL ASING TERHADAP INDUSTRI PERTAHANAN INDONESIA

EVALUASI DAMPAK PENANAMAN MODAL ASING TERHADAP INDUSTRI PERTAHANAN INDONESIA

Analysis of Trade Openness and Macroeconomic Variables on Foreign Direct Investment in Indonesia for the Period 1980-2022

This study analyzes trade openness and macroeconomic variables on foreign investment in Indonesia. This study uses Indonesian time series data from 1980 to 2022. The data analysis technique uses the Autoregressive Distributed Lag (ARDL) method. Data were analyzed using data stationarity test, optimal lag test, CUSUM test, classical assumption test, cointegration test and ARDL estimation processed with Eviews 10. The results showed that indirect trade openness has a positive and significant effect on Foreign Direct Investment (FDI) in the short term and long term. The exchange rate (IDR to USD) has a negative and significant effect on Foreign Direct Investment (FDI) in the short and long term. Inflation rate in the short term has a positive and significant effect but in the long term has a negative and insignificant effect on Foreign Direct Investment (FDI). GDP has a negative and significant effect in the short term but in the long term has a significant positive effect on Foreign Direct Investment (FDI).

ICSID Sebagai Lembaga Arbitrase Penyelesaian Sengketa Penanaman Modal Asing Bagi Indonesia Dan Praktiknya

Foreign investment in Indonesia is one of the efforts to develop the country's economy. Foreign investment is carried out by doing business in Indonesia, which is to invest in the form of foreign capital entirely or collectively with domestic investors. This practice is carried out by foreign investors with the existence of international treaty between Indonesia and its country as legal protection when investors invest in Indonesia, which can also choose a dispute resolution forum as a preventive action agreed by both parties. Through the Washington Convention, Indonesia ratified Law Number 5 of 1968 which is a form of Indonesia's commitment to resolved at the International Centre for the Settlement of Investment Disputes or ICSID. ICSID is an international arbitration institution that can be chosen based on certain provisions. This research was conducted using normative juridical method. The results are found that ICSID becomes a forum when Indonesia is in dispute with foreign investors who are also countries that ratify the Washington Convention. The Government of Indonesia has several times defended its international standing on the investment climate in the country through the ICSID forum. Therefore, this paper will examine ICSID as an investment dispute settlement institution and its practices.

Penyelesaian Sengketa Investasi Asing Melalui Mekanisme Arbitrase Internasional (Studi Kasus: Rafat Ali Rizvi Melawan Republik Indonesia)

One of the goals of the state is to create fair and prosperous society by carrying out development in various fields including the fields of economy, education and infrastructure. The country's development certainly requires large amounts of funds, but not all countries have these funds. The lack of funds which needed by the state is an entry point for investors to invest their capital, which is through foreign investment. Besides the investment, foreign investment also brings expertise, technology transfer, and can increase the productivity of the host country. However, the implementation of foreign investment do not always go well, investment problems will arise and in the end it can become foreign investment dispute. Investment dispute settlement is an important part of foreign investment in Indonesia and that is the form of protection for foreign investors. Investment disputes settlement in Indonesia begins with deliberation and consensus. If the deliberation and consensus not achieved, then the parties can take investment dispute settlement through international arbitration. The most common international investment dispute settlement mechanism is Investor-State Dispute Settlement (ISDS). Beside that, there is State-State Dispute Settlement (SSDS) mechanism. Submission of international investment disputes can be submitted to international arbitration forums, through International Centre for Investment Dispute (ICSID). One of the cases of foreign investment disputes that involved Indonesia is between Rafat Ali Rizvi and Republic of Indonesia.

GOVERNMENT’S ATTEMPT TO PREVENT UNFAIR BUSINESS COMPETITION PRACTICES IN INDONESIA: COMPARISON ON REGULATION OF THE COMMISSION FOR THE SUPERVISION OF BUSINESS COMPETITION

Joint venture in Indonesia has been regulated through Government Regulation No. 20 of 1994 concerning Ownership of Shares of Companies Established in the Framework of Investment and Presidential Decree no. 32, 33 and 34 of 1992 in which a cooperation between foreign capital and national parties intended by the government to provide protection and the role or participation of national private parties in the implementation of foreign investment in Indonesia. Foreign Investment in Indonesia must be in the form of a Limited Liability Company based on Indonesian law and domiciled within the territory of the Republic of Indonesia, unless otherwise stipulated in the Law. This is due to the function of the PT itself, namely the limitation of liability for shareholders. With the proliferation of Foreign Investment implementation in Indonesia, the Government has arranged to continue to provide equal opportunities for every citizen to actively participate in the investment sector. The method of research is normative legal research and type of data analysis used is a qualitative approach with literature studie. Result, one of the government's efforts to prevent monopolistic practices is to oblige business actors to make a notification or notification to the Business Competition Supervisory Commission (Komisi Pengawas Persaingan Usaha).

The Effect of Profitability, Tunneling Incentive, Debt Covenant, and Intangible Assets on Transfer Pricing Decisions with Tax Minimization as Moderating Variables: A Case Study of Manufacturing Companies Listed on the Indonesia Stock Exchange in (2019 – 2

The increase of foreign investment in Indonesia in 2020 and 2021 will cause increased reception from side taxation, but the tax justice network reports that Indonesia is still experiencing loss from side tax revenue, a loss caused by corporate tax avoidance by the company multinational through transfer pricing schemes. This research aims to investigate the influence of profitability, tunneling incentives, debt covenants, and intangible assets as indicated factor influence transfer pricing decisions with tax minimization as variable moderation. The research method used is quantitative with the technique of taking samples using purposive sampling; the number of samples was 27 companies out of the 195 population. Research results revealed that profitability, tunneling incentives, and debt covenants positively affect transfer pricing decisions; meanwhile, tax minimization moderates the effect of profitability, tunneling incentives, debt covenants, and intangible assets on transfer pricing decisions.

THE LICENSE FOR HIRING FOREIGN WORKERS IN INDONESIA

The entry of foreign workers into Indonesia is one of the impacts of foreign investment in Indonesia to assist national development. The opportunity to utilize foreign workers (TKA) has significant impacts, both positive and negative impacts. By applying a normative judicial approach, this research is conducted to analyze the regulations to get license in hiring foreign workers and the law enforcement if there is any offense. Besides improving the investment climate, the philosophy of hiring foreign workers is to transfer knowledge from foreign workers to Indonesian workers. This research shows that the regulations to get license in hiring foreign workers are currently easier than the previous regulations. On the other hand, supervision regarding offesenses of permits to employ foreign workers has so far not been optimal.The government is expected to pay attention to the opportunities for Indonesian Citizens to get a job and take decisive action if there is any offense.

Indonesia - Russia Bilateral Relations: Efforts To Enhance Digital Economy And Tourism Investment Cooperation

Indonesia and Russia's bilateral relations still need to be improved and strengthened in all sectors. Both countries agreed in Jakarta in 2021 to enhance and strengthen bilateral cooperation in politics, law, and security. The commitment to further cooperation made by the two major countries in the Asia Pacific aimed at creating peace and maintaining regional and global security stability. This study aims to elaborate how Indonesia's bilateral relations with Russia enhanced are related to the efforts of both generating digital economic cooperation and attracting foreign investment in Indonesia's leading tourist destinations. This study utilizes the concept of dynamic bilateral relations and the implementation of foreign economic policies. The researchers use qualitative research methods with explanatory writing techniques analyzing the data and information obtained. The liberal approach to mutually beneficial international cooperation is further elaborated and analyzed, particularly in understanding how each country's strategic decisions have an impact on sustaining regional economic growth. The digital economy cooperation built by the two countries still needs to be strengthened to attract more incoming Russian investors in the tourism industry. This research reveals that international cooperation has been carried out by the Indonesian government and stakeholders related to tourism management destinations is done through bilateral cooperation, regional cooperation, and multilateral cooperation. It still needs clear strategies that should be implemented tactically as a strategic effort by the Indonesian government and related stakeholders to sharpen the construction of the national digital economy in the sustainable, inclusive, and quality tourism sector in driving and supporting national economic growth.

Impact of presidential decree number 44 of 2016 on sustainable fisheries at archipelago state

The purpose of this study is to analyze the impact of the Presidential Regulation (Perpres) Number 44 of 2016 on sustainable fisheries. Presidential Decree No. 44 of 2016 concerning business fields closed to foreign investment in Indonesia. In the results of the analysis using the models: linear trend, quadratic and exponential. Result analyzed indicated that the most suitable model is the quadratic model. The quadratic model is related to the nature of fish resources. The Gordon-Schaefer model states that fisheries with an open access management regime will lead to economic inefficiency. To prevent this economic inefficiency, several economic instruments must be applied, such as limiting efforts and quotas. One of the instruments for limiting fishing efforts is through Presidential Regulation no. 44 of 2016. Limiting efforts is positive impact for local fisherman. For example, since the foreign vessels banned from operating, small bitung fishermen, they could catch 3-6 tunas per day in 2019. In 2014, they had only been caught 1-3 tuna per day. Investment waste in a sector will eliminate the potential economic rents of fish resources. Investment waste in capture fisheries should be used for fish processing activities and aquaculture activities that will provide added value.

Determinants of Indonesia Domestic Investment and Foreign Investment

This research aimed to know how the effect of capital expenditure and inflation variable the Domestic and Foreign Investment in Indonesia especially Provinces on Java Island from 2016 to 2020. This research used the panel data regression method with time‐series data from the Central Bureau of Statistics (BPS) and the Directorate General of Fiscal Balance's portal data. The results of this study are the inflation variable partially significant effect on Foreign Investment in provinces on Java Island. On the contrary, the capital expenditure variable does not have a significant effect both on domestic and foreign investment, while the inflation variable strengthens the relationship between capital expenditures and domestic investment.

DAMPAK NILAI IMPOR DAN EKSPOR INDONESIA TERHADAP PENANAMAN MODAL ASING AS DI INDONESIA 2000-2020

This study aims to understand Indonesia's exports -the value of US imports to Indonesia from 2000 to 2020. The independent variables of this study are Indonesia's export value from 2000 to 2020 (X1), Indonesia's import value from 2000 to 2020 (X2) and the dependent variable i.e. Indonesia's foreign countries in the United States from 2000 to 2020. It is a direct investment (Y). The data used is from the official website of the Indonesian Central Bureau of Statistics. The data analysis used is a multiple regression analysis. The stimulus test (F-test) results show that the simultaneous value of Indonesia's imports and exports does not have a significant impact on US foreign investment in Indonesia. On the other hand, the partial test (t-test) results show that the import and export variables do not show a partially significant effect on US foreign investment in Indonesia from 2000 to 2020