Law Observation toward
Direct Investment and Portfolio Investment in Indonesia
Introduction
Globalization era gives economical effect, such as
information flow which quickly reaches society. It’s more clearly along with state
economic growing. Today, global economy experiences rapid globalization which
can be seemed from the growth of foreign investment in any companies. This more
rapid foreign investment is like nullifying any limitations of economical
international relations.
Indonesia is one of developing country which wants
to try developing its own country. To reach the primary goal, Indonesia are
opened themselves by building relations with other nations in order to receive
some supports in developing their nations, particularly in national economy
sector.
Indonesia ever had a promising economic condition in
1980 to middle 1990; all aspects could be fulfilled by domestic resources and
outcomes. The strategy government had that time is inviting foreign investor;
particularly those who will do long-term/direct investment (PMA). Foreign
investment policy (PMA) was carried out because investment was very significant
for national economy growing.
Direct Foreign Investment (FDI) has positive
externalities such as the entry of stable inflow of foreign capital, the
increasing of work opportunities, the increasing of national revenue, the
emendation of balance sheet-payment, and the technology and managerial skill
transferring from multinational companies. These positive externalities are
primary goal of public policy in pulling FDI.
If a state wants to be investment destination, the
procedural and activities investment-related law should be able to create
assurance. However, it’s different to the ideal condition, most of study about
investment climate in Indonesia placed uncertainty of law as which hampers
investment growth for either foreign investment or domestic investment, either
direct investment or portfolio investment. Study of World Bank published in
2005 noted that in firm level they found some of obstacles for investing which
was included in macro economy instability category, uncertain policy and
regulation and the higher degree of corruption. Other problems consist of the
low or difficulty to access financing, the low supply of electricity, the low
skill of employee, regulation of labor sector, and some decentralization
authority-related problems in local government level. Furthermore, it is said
that Indonesia government had done some strategic efforts by adopting more of
fiscal reformation, trade liberalization, financial sector reformation, taxing,
labor and regular business reformation. However, the main problem is the gap
between political will of government with the implementation in reality,
including of gap between regulations and its implementation. Article 3 ACT
Number 25 Year 2007 places assurance principle of law as the top from 10
principles of investment implementation in Indonesia. This principle emphasizes
Indonesia position as state law which places law and legislative regulations as
basis for every policies and actions in investment. Yet, not all of law
certainty problems in investment implementing are decided by the law in the ACT
mentioned above. Law certainty in the term of substance has to be supported by
law substance in other business law and also decide assurance aspect in the law
enforcement structure.
This paper aims to analyze direct investment and
portfolio investment in Indonesia from perspective of law.
Ini hanya versi sampel aja yaa...
Untuk dibuatkan lengkapnya/ customized
Silahkan contact WA/SMS o85868o39oo9
(Diana)
Ditunggu ordernya yaa, thanks…