Legal Breakthrough Steps as an Effort to Improve Competitiveness Climate and Guarantee Legal Certainty for Investment in Indonesia

DOI

10.2991/assehr.k.211112.075How to use a DOI?

Keywords

Legal Breakthrough; Law on Job Creation; Investment Competitiveness; Legal Certainty

Abstract

In the midst of a weakening global economic situation due to the impact of the Corona Virus pandemic, Covid 19, the competition to attract foreign investment is getting tougher and more difficult. Investment, in the form of foreign investment, is believed to still be the main support for Indonesia’s economic growth, domestic capital is felt to be insignificant, sufficient to turn the wheels of national development. To attract foreign capital to Indonesia is not easy, because it must compete with other countries in the ASEAN region such as Malaysia, Thailand, Vietnam, the Philippines, and so on, which have created a competitive climate in the first place. As a guide to investing abroad, the World Bank has set ten indicators measuring the ease of doing business in a country (EoDB). Indonesia is currently ranked 73rd in the world, and 6th in ASEAN. The purpose and objective of this research are to find out and find solutions to the legal problems of increasing foreign investment in Indonesia. The main problems of this research are: What legal breakthrough steps should be taken by the Indonesian government to improve the competitive climate and legal certainty for investing in Indonesia? The research method used is the juridical-normative approach, using secondary data in the form of legislation, literature, journals, and the internet. Meanwhile, the data collection technique was carried out by means of a literature study. Data analysis techniques are using a qualitative descriptive analysis. The results showed that in the context of implementing investment, investment, various laws, and regulations governing investment in Indonesia (obesity, hyper-regulation, with at least 72 regulations) were found, which are feared to reduce investment attractiveness. To overcome legal problems, the government is required to make legal breakthroughs by simplifying various laws and regulations into one law that adheres to the omnibus law system, namely by establishing Law Number 11 of 2020 concerning Job Creation (UUCK). It is hoped that this can trigger, make it easier for investors to invest while guaranteeing legal certainty, as well as improving the climate for investment competitiveness in Indonesia.

Copyright

© 2021 The Authors. Published by Atlantis Press SARL.

Open Access

This is an open access article under the CC BY-NC license.

Download article (PDF)

TY  - CONF
AU  - Marulak Pardede
AU  - Henry Donald Lbn Toruan
AU  - Mosgan Situmorang
AU  - Syprianus Aristeus
PY  - 2021
DA  - 2021/11/23
TI  - Legal Breakthrough Steps as an Effort to Improve Competitiveness Climate and Guarantee Legal Certainty for Investment in Indonesia
BT  - Proceedings of the 2nd International Conference on Law and Human Rights 2021 (ICLHR 2021)
PB  - Atlantis Press
SP  - 577
EP  - 589
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.211112.075
DO  - 10.2991/assehr.k.211112.075
ID  - Pardede2021
ER  -