OMNIBUS LAW FOREIGN INVESTMENT IN INDONESIA

Adhi Budi Susilo, Irwanto Efendi

Abstract


The main source of national development funds in Indonesia is domestic funds. However, the amount of domestic funds available is very limited, so the government utilizes funds from abroad. One source of funds from abroad that can be used to finance Indonesia’s national development is foreign investment. Foreign investment as a form of capital flow has an important role for the economic growth of a country, especially developing countries. This is due to foreign investors not only transferring capital goods, but also transferring knowledge and human capital. For Indonesia and other developing countries, foreign investment has a direct contribution to the planned national development.Based on this background, a problem arises namely how to apply omnibus law to foreign investors in Indonesia.Indonesia can adopt the omnibus law to create investment legal instruments that can increase investment interest in Indonesia. This is because the problems regulated in investment law are very complex. Not only is the issue of investors coming and investing their capital, but it is closely related to various aspects such as employment, infrastructure, fiscal and non-fiscal incentives and others as such. The complexity of this problem is not yet regulated by the Investment Law.


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