The Urgency of Indonesian Omnibus Law Implementation Related to Foreign Investment

• Published in: Substantive Justice International Journal of Law
• Main Author: Dewi A.A.S.L.; Rahayu M.I.F.; Ujianti N.M.P.; Saripan H.; Wibisana A.A.N.A.
• Format: Article
• Language: English
• Published: Faculty of Law, Universitas Muslim Indonesia 2023
• Online Access: https://www.scopus.com/inward/record.uri?eid=2-s2.0-85213305842&doi=10.56087%2fsubstantivejustice.v6i2.239&partnerID=40&md5=e230069dbddf376840cb5f81fd2ba122

One source of foreign funding that can be used to finance Indonesia's national development is foreign investment. However, compared to other Asian countries like Vietnam, Taiwan, Bangladesh, and South Korea, Indonesia has not become an attractive investment choice. One of the reasons for this is the difficulty of the various regulations governing the licensing process. This article aims to identify the efforts of the Indonesian government in improving the licensing regulations to increase foreign investment. In order to focus on this issue, the normative legal research method is used, employing secondary data consisting of primary, secondary, and tertiary legal materials. Furthermore, the data is analyzed descriptively and prescriptively. To encourage an increase in foreign investment, it is necessary to harmonize various legislation using the omnibus law formation method. This method aims to create synergy between regulations related to investment under one legal umbrella, including investment regulations, licensing, labor, and more. However, the implementation of this method has faced challenges due to the Constitutional Court's ruling stating that the Job Creation Law is contrary to the 1945 Constitution and does not have conditionally binding legal force. © 2023, Faculty of Law, Universitas Muslim Indonesia. All rights reserved.