Investment In Indonesia Research Articles

Settlement of Investment Disputes Based on the Bilateral Investment Treaty through Arbitration of the International Centre for Settlement of Investment Disputes (Case Study of Rafat Ali Rizvi vs. the Republic of Indonesia)

This study discusses foreign investment disputes involving Indonesia in international arbitration forums, particularly under the jurisdiction of ICSID (International Centre for Settlement of Investment Disputes). The main focus of this study is on the interpretation of the provisions of Article 2 paragraph (1) in the Indonesia-UK Bilateral Investment Treaty (BIT), which regulates the conditions for the entry of foreign investment in Indonesia. In the Rafat Ali Rizvi case, the arbitration panel decided that the process of entering investment that does not comply with the provisions of the Foreign Investment Law (UU PMA) cannot be included in the scope of the BIT. This study provides important recommendations for Indonesia in re-evaluating the provisions in each BIT involving Indonesia, as well as conducting further studies on ICSID arbitration decisions to understand the interpretation of BIT articles related to jurisdiction and the subject matter. Thus, this study aims to strengthen Indonesia's position in facing investment disputes at the international level

Epistemological Foundation of ESG-Based Investment in Indonesia's Economic Policy

This research focuses on the application of ESG (Environmental, Social, and Governance) based investments in Indonesia, which emerged in response to the increasing global awareness of environmental and sustainability issues. While ESG in Indonesia is growing, many companies have yet to fully adopt these principles effectively, and there are epistemological challenges in understanding and translating ESG standards into the local policy context. The purpose of this research is to deeply analyze the concept and implementation of ESG-based investment from an epistemological perspective in Indonesian public policy. This research wants to identify the extent to which the Indonesian government understands and utilizes ESG-related information in investment policy and evaluate the effectiveness of the policy. The type of research is descriptive quantitative using a philosophical approach with literature study as a secondary data source, including policy documents, government reports, and academic publications related to ESG. The data is explored using concept analysis and existing theories to assess the application of ESG in economic policy. The findings show that although Indonesia has ESG-related policies, their implementation is often influenced by international pressure and legitimacy needs rather than real impact on sustainability. ESG policies in Indonesia also risk becoming a tool of “greenwashing,” where companies use it for image without concrete actions. This research recommends increased transparency and accountability in ESG reporting for such policies to deliver substantial change.

The Influence of Education, Lifestyle, and Financial Awareness in Increasing Generation Z's Financial Literacy in Islamic Stock Investment in Indonesia

<p>Salah satu bentuk investasi yang mengikuti perkembangan digitalisasi 4.0 adalah pasar modal, merupakan tempat bertemunya pembeli dan penjual obligasi, reksa dana, saham, dan instrumen lainnya yang di dalamnya terdapat sistem atau mekanisme untuk memfasilitasi perdagangan efek atau instrumen keuangan jangka panjang. Perkembangan investasi dalam pasar modal di Indonesia tidak hanya terbatas hanya konvensional saja, namun juga berkembang pasar modal syariah. Tujuan dilakukannya penelitian ini adalah untuk mengetahui tentang cara gen Z dapat meningkatkan literasi keuangannya pada investasi saham syariah, diantaranya melalui peningkatan pendidikan, gaya hidup yang lebih bijak, dan kesadaran keuangan yang lebih tinggi. Penelitian ini merupakan penelitian literature review, dimana diperoleh kesimpulan bahwa education, life style, dan financial awareness mampu meningkatkan financial literacy terutama pada gen Z karena ketiga variabel tersebut memililiki peran krusial dalam membantu meningkatkan literasi keuangan.</p>

Factors Affecting Muslims' Decision in Tangerang Selatan During Recession to Make Sharia Investment

The pandemic has had a significant impact on the global economy, including Indonesia, which experienced a recession in 2020. However, a unique phenomenon occurs in the Islamic capital market, where Islamic stocks show stability and even experience significant increases during the recession. The study explores how the recession affects the decision of Muslims in Indonesia to invest in Sharia and whether Sharia investment can be an effective solution to deal with a recession. Data from the Central Statistics Agency and the Financial Services Authority shows that the sharia capital market in Indonesia continues to grow, especially in the form of sharia stocks and sharia mutual funds. This study aims to analyze the factors that affect the decision of the Muslim community to make sharia investments during the recession due to the COVID-19 pandemic. This study uses quantitative methods with respondents from various sectors of the Muslim community in Indonesia, including students, office workers, and entrepreneurs. The results of this study found that the decisions of the Muslim community have a significant influence on Islamic investment, with the results of the t-test showing a t-count value of 25.366 and a determination coefficient (R²) of 86.8%. This means that most of the variations in sharia investment can be explained by community decisions, while the remaining 13.2% is influenced by other variables. The conclusion of this study is that increasing Islamic financial literacy and religious understanding can be an effective strategy to encourage interest in Islamic investment in Indonesia. This research is expected to be a reference for financial institutions and policymakers in improving accessibility and education related to Sharia investment.

Analisis Pengaruh Ekspor dan Impor Terhadap Pertumbuhan Ekonomi Pendekatan Akuntansi Arus Dana yang Dimediasi Foreign Direct Investment di Indonesia Tahun 2019-2021

The purpose of this study was to determine and examine the effect of exports and imports before, during, and after the covid-19 outbreak on economic growth with an accounting approach to foreign direct investment mediated fund flows in indonesia. Quantitative approach with PLS analysis technique is used in this study. Secondary Data obtained from various official websites were used in this study. This study provides the results that exports and imports have a positive and significant influence on economic growth with the approach of accounting for the flow of funds mediated by foreign direct investment in Indonesia. This implies that exports and imports have an important role in economic growth approach to accounting for the flow of funds. Foreign direct investment plays an active role in mediating the relationship between exports and imports to economic growth. The declining value of exports, imports, and foreign direct investment during the pandemic also affected the decline in economic growth in Indonesia. Export activity needs to be increased so that economic growth also increases. Likewise with import activities, although imports are excessive trade balance deficit, imports also have some positive influence on economic growth such as by importing can meet domestic needs and open opportunities to attract investors to invest. For this reason, imports need to be controlled so that economic growth continues to increase.

The Influence of Interest Rates and Inflation on Asset Allocation Strategies in Investment Portfolios in Indonesia

This study examines the impact of interest rates and inflation during the 2019-2023 period on asset allocation strategies in Indonesia's investment portfolio. Investment decisions are heavily influenced by two macroeconomic components, namely interest rates and inflation. These factors mainly affect how assets comprise a portfolio. In this study, data on Bank Indonesia's benchmark interest rate and the national inflation rate over the past five years are analyzed to see the pattern of change and its impact on asset allocation strategies, which include stocks, bonds, property, and other assets. The results show that rising interest rates significantly encourage people to shift from high-risk assets (e.g. stocks) to safer assets (e.g. bonds and deposits). Meanwhile, high inflation triggers an increased allocation to physical assets such as property and gold as a hedge against declining purchasing power. This research provides insights for investors to adjust their investment portfolios based on macroeconomic dynamics, especially in the face of interest rate volatility and inflation. The findings also highlight the importance of flexibility and diversification in asset allocation strategies to achieve optimal investment objectives amid economic uncertainty. The conclusion of this study confirms the importance of understanding interest rate and inflation dynamics in formulating effective investment strategies in Indonesia. The implications of these findings can be used by investors and policymakers in designing better monetary policies and investment strategies, in order to maintain national economic stability.

Determinants of Foreign Direct Investment in Indonesia: Do Presidential Regimes Matter?

Research Originality: The originality of the research is the separation of data in different governments. The request is based on the leadership style, especially in the era of President Susilo Bambang Yudhoyono and President Jokowi.Research Objectives: This study examines the determinants of foreign direct investment (FDI), both in the short and long term in Indonesia during the leadership of Presidents Susilo Bambang Yudhoyono (SBY) and Joko Widodo (Jokowi).Research Methods: This study uses time series data on the World Development Indicators website from 2004 to 2021. Using Autoregressive Distributed Lag (ARDL)Empirical Results: This study finds evidence that institutional quality, economic growth, and presidential regime in the short and long run significantly positively affect FDI. Meanwhile, the population negatively influences FDI in Indonesia in both the short and long run.Implications: These findings imply that to draw in more foreign direct investment (FDI), Indonesia must enhance institutional quality, economic growth, presidential governance, and population control.JEL Classification: F21, F43, G18, H21, R23

Nexus between Islamic Investment, Musyarakah Financing, Islamic Microfinance and Achieving SDGs in Indonesia

Islamic Finance Transformation through analysing the role of musyarakah financing and Islamic microfinance in enhancing Islamic investments in Indonesia has become an important focus to achieve the Sustainable Development Goals (SDGs). This study explores the role of Islamic financial instruments in facilitating investments that not only prioritise financial returns but also social and environmental outcomes. The method used is Fully Modified Ordinary Least Squares (FMOLS) to analyse time series data from 2015 to 2023. The research variables used are Islamic investment, musyarakah financing and Islamic microfinance. The results showed that musyarakah financing has a significant influence on the growth of Islamic investment, thus contributing to poverty alleviation (SDG 1) and increasing financial inclusion (SDG 8). In addition, Islamic microfinance is proven to be effective in empowering the local economy and creating jobs. These findings confirm the importance of Islamic finance integration in sustainable development strategies and offer innovative solutions to complex global challenges

The economic impact of dry port investment in Indonesia: A case study of Bangil, Pasuruan District, East Java Province

Acknowledging the pivotal role of ports and dry ports in shaping a nation’s economic landscape, this study explores the economic impact of port development in East Java, specifically Bangil Dry Port in Pasuruan over at least 30 years of business operational process. This study pioneers the quantification of gross value added, investment multiplier effect, tax contribution, and Creating Shared Value (CSV) resulting from dry port investment. The method used for calculating multiplier investment is Keynesian multiplier approach and for labor absorption is Incremental Labor Output Ratio (ILOR). Field surveys were conducted to determine the condition of Bangil, and secondary data on the growth of container flows at Port of Tanjung Perak was used as a reference for growth in Bangil. Overall, these results show that Bangil Dry Port investment will generates positive impact both for government and society in general, but also the economy of East Java and Pasuruan District in particular. These results offer practical guidance for decision-makers in optimizing public funds allocation, while also laying the groundwork for future scholars to conduct comprehensive societal-scale cost-benefit analyses of strategic port investments, contributing to a deeper understanding of the economic implications.

Determinants of Tax Regulations Referring to ESG Principles on Company Performance in Indonesia

Purpose: This study examines ESG integration in Indonesia's tax regulations and their impact on financial performance, focusing on green investments.Method: This study uses a qualitative case study method to analyze ESG integration in Indonesia's tax regulations, focusing on policies, carbon tax effectiveness, and emissions disclosure. The research is based on corporate legitimacy and institutional theories to explore the relationship between tax regulations and sustainable practices.Findings: The study's findings reveal significant growth in green investments in Indonesia, largely driven by supportive ESG-oriented tax policies. Despite this progress, challenges such as limited corporate awareness and data availability remain barriers to fully realizing the potential of these policies. The analysis also highlights the importance of these regulations in fostering sustainable business practices, particularly in industries like palm oil that are crucial for addressing climate change.Novelty: This research uniquely examines the impact of ESG-focused tax regulations on green investments and sustainable practices in Indonesia, using corporate legitimacy and institutional theories. It fills a literature gap by exploring how tax regulations drive ESG integration in the business sector of a developing country.Implications: The study has important implications for policymakers, businesses, and stakeholders in Indonesia and similar economies. It shows that ESG-focused tax policies positively impact green investments, suggesting that refining and implementing these policies could strengthen sustainable business practices and support environmental goals. The study also emphasizes the need for greater corporate awareness and better data collection to address challenges and ensure effective ESG integration in the corporate sector.

The behavioral biases on investment decision behavior: Evidence from Indonesia

The purpose of this study to analyze the behavior of investors in making financial investments in Indonesia. Although the overall financial literacy level in Indonesia has increased, individuals with higher levels of financial literacy tend to make more rational investment decisions. Being well-literate can be interpreted as the personal ability to understand and create financial concepts. However, some individuals still need help understanding investment products and services in Indonesia. This is due to the fact that there are still individuals who invest in illegal products. This study focuses on four biases: overconfidence bias, optimism bias, herding effect, and flexing, using quantitative analysis. The decision to invest is influenced by the thoughts of each investor and their optimistic behavior in seeking the highest return on their investment. This study used primary data with descriptive quantitative analysis. The number of respondents used in the overall research was 400, with criteria for investment products. The result of this study shows that the variable of overconfidence, optimism, and flexing affects the behavior of financial investment decisions. However, the variable bias herding effect does not affect the behavior of financial investment decisions. In conclusion, investors should be more cautious in making investment decisions by paying attention to the variables of overconfidence, optimism, herding effect, and flexing social media in Indonesia.

The Role of Political Stability and Foreign Direct Investment in Indonesia's Economic Growth

This study aims to determine how the role of political stability and foreign direct investment to economic growth in indonesia. This study also aims to examine the influence of political stability and foreign direct investment (FDI) in playing an important role in economic growth in 34 provinces in Indonesia for the period 2018-2022. The method used in this study is a quantitative research method using secondary data in the form of panel data. The analysis tool used is panel regression. It was found that the positive relationship between political stability, Foreign Direct Investment (FDI), has a very important role for economic growth in Indonesia.

A HOLISTIC OVERVIEW: INDONESIA'S GEOTHERMAL ENERGY ENCOURAGES GEOTHERMAL POWER PLANT INVESTMENT IN SUPPORT OF NATIONAL DEFENSE

The Pacific Ring of Fire passes across Indonesia physically, and the country's intense volcanic and tectonic activity has produced a wealth of geothermal resources that could reach 23,46 GW, distributed over 357 sites. To promote the decarbonization of Indonesia's electricity supply and the advancement of geothermal energy, the Indonesian government issued Presidential Regulation No. 112/2022 on the Acceleration of Renewable Energy Development for Electricity Supply in 2022. To incentivize GPPs to invest, the lack of bids in PLN's most recent procurement from 2021 requires more than the maximum electricity tariff. Investing in geothermal projects has some regulatory obstacles in addition to cost concerns. This study aims to assess geothermal investment in Indonesia and reduce reliance on fossil fuels, which are susceptible to price and supply volatility. GPPs ensure a consistent energy supply for national needs to support national defense. The method used is descriptive qualitative, which relies on literature studies that discuss appropriate issues. The National Energy Management Blueprint 2006-2025 presents the survey results. The Government of Indonesia plans geothermal energy to contribute about 5% of the national energy mix or about 7,32 GW in 2025. However, the realization of installed geothermal power plant capacity in 2023 only reached 2,38 GW, or 32,52 percent of the planned capacity to be installed. Through the Ministry of Energy and Mineral Resources, the government needs to increase the purchase price of electricity from IPP GPPs to create a good investment climate and continue to grow the geothermal industry.

Identifying the effect of adding coconut coir on the characteristics of the top layer of pure natural buton asphalt concrete wearing course (AC-WC)

Buton Asphalt is natural asphalt originating from Buton Island (Indonesia), with the potential deposit amount reaching up to 662 million tons. This substantial domestic mining potential must be utilized for domestic road needs and to boost the country's economy. However, Buton asphalt's utilization is minimal compared with imported oil asphalt, which reached a usage rate of up to 94 % in 2022. Therefore, as a form of a solution-oriented policy, Buton asphalt is included as one of the 21 commodities in the Strategic Roadmap for Downstream Investment in Indonesia, followed by various supportive regulations for developing this Buton asphalt product. One of the leading products the government targets is natural pure Buton asphalt. This product consists of >99 % bitumen content after extraction, also called Pure Buton Asphalt. The idea was to modify pure Buton asphalt with coconut coir to increase the Marshall Stability and Dynamic Stability values to make the asphalt mixture more resistant to vehicle loads and rutting. The tests were conducted to determine the optimum asphalt content (OAC) of the mixtures, Marshall's Stability comparison, and the dynamic stability test using a Wheel Tracking Machine to identify the comparison of permanent deformation. This study analyzed the Marshall characteristics and dynamic stability characteristics with variations in coconut coir content of 0.5 %, 0.75 %, and 1 % by weight of asphalt and variations in coconut coir length of 0.5 cm, 1 cm, and 1.5 cm. Based on the results of this study, the optimum asphalt content in this study is 6.76 %, where pure Buton Asphalt modified with coconut coir has an increase in Marshall's stability value and dynamic stability value compared to pure Buton asphalt without additional coconut coir

Peran Influencer dalam Investasi Cryptocurrency: Literasi Keuangan Digital Mediator ataukah Moderator?

In the context of significant growth in cryptocurrency in Indonesia, investment influencers on social media often provide information that affects investment behavior. Digital financial literacy becomes crucial in ensuring wise investment decisions, especially in understanding the risks and potential benefits of cryptocurrency. This research explores the role of influencers in cryptocurrency investments in Indonesia, with a focus on digital financial literacy as a mediating factor. Data were collected using a survey method with a sample of 100 respondents. Data analysis employed SEM-PLS. The study results indicate that influencers and digital financial literacy affect cryptocurrency investment decisions. Digital financial literacy acts as a mediator, not a moderator. These findings highlight the importance of comprehensive financial education in addressing this increasingly popular investment trend.

Business on Nickel Downstreaming with China and European Union Lawsuits

That the downstream nickel business between Indonesia and China aims to obtain maximum profits for the welfare of the Indonesian people, which is based on legal regulations issued by the Indonesian government. As Chinese companies are building purification and processing plants or nickel smelters in Indonesia with a large investment value, the Indonesian government obtains a substantial advantage from the export through the export of domestically processed nickel. Also, Indonesian and Chinese companies both benefit from having a nickel smelter or refining and processing factory in Indonesia. These advantages encompass Chinese investment in Indonesia, job creation in Indonesia, and increased export outcomes. However, this development has raised concerns in the European Union, primarily because Indonesia recently banned the export of nickel ore. Instead, Indonesia has encouraged the domestic processing of nickel ore to add value to nickel products. Indonesia as one of the world’s largest nickel producers has regulations in terms of nickel exports. This is stated in the Regulation of the Minister of Energy and Mineral Resources Number 11 of 2019 concerning the Second Amendment to the Regulation of the Minister of Energy and Mineral Resources Number 25 of 2018 concerning the Business of Mineral and Coal Mining. In this regulation, Indonesia imposes a ban on the export of nickel ore. Related to this ban, the European Union also reacted by filing a lawsuit filed at the World Trade Organization (WTO). Based on the Constitution, the welfare of the Indonesian people is the main goal through the management of natural resources, so outside parties or other countries cannot intervene.

Coronanomics: Implications of COVID-19 Pandemic in The Economy in Indonesia

Coronanomics is the impact of the Covid-19 pandemic on the economy. The purpose of this study is to analyze the impact of the Covid-19 pandemic on the macro economy which includes several macro indicators, namely data on economic growth, inflation rates, interest rates, consumption, and investment in Indonesia as well as government policy responses in overcoming the Covid-19 pandemic. This study uses a literature study by taking data from several literatures that support the research process. This study uses quantitative data that is described qualitatively to analyze the impact on the macro economy. Data collection techniques used by listening and analyzing data by means of data reduction, data display, and an overview about the literature to be developed in this study. The results showed that the Indonesian economy in the third quarter of 2021 increased by 3.51% (yoy), although it slowed down compared to the previous quarter's achievements, household consumption grew by 1.03% (yoy). Investment growth slowed by 3.74% (yoy), supported by construction investment. The government's consumption performance was 0.66% (yoy), in line with the reallocation of spending to accelerate the national economic recovery program, including the handling of the Covid-19 delta. The inflation rate in October 2021 was 0.93%, a decrease compared to inflation in 2020 of 1.66%. The government's policy responses that have been carried out in order to overcome the Covid-19 pandemic are divided into two, namely through the Covid-19 Handling Policy and the National Economic Recovery Policy (PC-PEN).

Perlindungan Hukum dan Kebijakan Tarif Pajak terhadap Trader Crypto di Indonesia

Cryptocurrency investment in Indonesia has become an increasingly popular topic as people's interest in digital assets increases. Although there is potential for huge profits, there are also risks that need to be considered. The Indonesian government takes a cautious stance in regulating cryptocurrencies. Clear regulations still do not exist, although in 2019, the Commodity Futures Trading Supervisory Agency (BAPPEBTI) issued regulations recognizing cryptocurrencies as commodity futures that can be traded on futures exchanges. Bank Indonesia has issued a statement reminding the public of the risks associated with the use of digital currencies, but there has been no outright ban on their use. There are also concerns regarding the misuse of cryptocurrencies for illegal purposes, such as money laundering and terrorism financing, which are continuously monitored by governments and financial regulatory agencies. Despite regulatory uncertainty, interest in cryptocurrencies continues to grow in Indonesia, and more and more companies and individuals are interested in understanding and using this technology.

Perlindungan Hukum dan Kebijakan Tarif Pajak Terhadap Trader Crypto di Indonesia

Cryptocurrency investment in Indonesia has become an increasingly popular topic as people's interest in digital assets increases. Although there is potential for huge profits, there are also risks that need to be considered. The Indonesian government takes a cautious stance in regulating cryptocurrencies. Clear regulations still do not exist, although in 2019, the Commodity Futures Trading Supervisory Agency (BAPPEBTI) issued regulations recognizing cryptocurrencies as commodity futures that can be traded on futures exchanges. Bank Indonesia has issued a statement reminding the public of the risks associated with the use of digital currencies, but there has been no outright ban on their use. There are also concerns regarding the misuse of cryptocurrencies for illegal purposes, such as money laundering and terrorism financing, which are continuously monitored by governments and financial regulatory agencies. Despite regulatory uncertainty, interest in cryptocurrencies continues to grow in Indonesia, and more and more companies and individuals are interested in understanding and using this technology.

Challenges in Indonesia's Investment Policy for Stimulating Economic Growth Through the Omnibus Law

Challenges in Indonesia's Investment Policy for Stimulating Economic Growth Through the Omnibus Law