Jakarta/Lei- Indonesia has almost 230 million populations, which represents an enormous market. Additionally, the country has abundant natural resources (timber, fish, oil, natural gas, metals) and enormous biodiversity. Internal demand is growing due to the development of the middle class. Indonesia natural resources has not optimally empowered for prosperity of the people due to limited capital, technology and human resources. To explore all potentials, Indonesia needs foreign investment. It must be accompanied by a set of rules that guarantee and protect investors as well as providing them a legal certainty without sacrificeing the national interest. So that the enactment of Law No. 25 of 2007 on Investment is to accommodate the various interests of parties regarding the certainty and legal protection for investors with regard to national economic interests.
Capital investment is significantly important to the growth of the national economy. There are two main benefits. First, rising income (as increase in the level of wages, the consumer or the increase in government revenue). Secondly, the indirect benefits such as the introduction of new technology and knowledge. On the other hand, investment is also expected to expand its role in Indonesia’s foreign exchange through the export of its production abroad.
Based on the investment competition with other countries and also considering to the UNCTAD report, the necessary breakthrough steps to attract foreign investors in Indonesia is the state of the art information investment. Regarding policies, particularly in the areas of related law to the protection and legal certainty as well as the mechanism of bureaucracy. Handling of providing information on foreign investors can be done through diplomacy and between businesses themselves.
Increasingly developed economic globalization based on the principle of trade liberalization, drives regional economic cooperation among countries such as the North American Free Trade (NAFTA), Single European Market (SEM), European Free Trade Agreement (EFTA), the Australian-New Zealand Closer Economic Relations and Trade Agreement (ANCERTA), ASEAN Free Trade Area (AFTA), Asia Pacific Economic Cooperation (APEC) and the World Trade Organization (WTO). The robust economic globalization drive the interdependence and integration in finance, production and trade. This situation infuences of the economic management of Indonesia.
Investment is one of the driving processes to strengthen the country’s economy, so that some countries are trying hard to increase their investment. Foreign investments are invited to bring funds to boost the industries to drive the economic development of the country.
Investment is significantly important to the growth of the national economy. It has two main benefits Indonesia firstly generating income and transfer of technology and knowledge. Structuring investment law begun with the presence of the Investment Act to accommodate the various interests of foreign investors. Indonesia endevours to boost national economy by creating a conducive business climate. By structuring the law of investment is expected to encourage investment both domestic and foreign investment by providing legal certainty and clarity regarding the investment.
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