•  
  •  
 

Abstract

Foreign Direct Investment is one of the important means to increase a country’s economic growth through equitable development. However, countries such as Indonesia, often put restrictions on their foreign investment policies. The purposes of this research are: 1) to explain the restrictive policies which are imposed upon foreign investments in Indonesia and to compare them to those of other countries in Asia; 2) to explain the practical impact of such restrictive policies on foreign investments in Indonesia. The author uses a qualitative-descriptive research method. The research is also conducted through a juridical normative approach. This research shows that: 1) Restrictions on foreign investment is regulated under the Presidential Regulation of the Republic of Indonesia No. 76 of 2007 on Criteria and Requirements for Formulation of Business Fields Closed to Investment and Business Fields Conditionally Open to Investment; 2) In its implementation, Presidential Regulation No. 76 of 2007 has not yet been able to boost sustainable economic growth evenly via the empowerment of MSMEs or domestic investors.

References

Books Barro, Robert J., Determinants of Economics Growth: A Cross Country Empricial Study, Massachusetts London: The MIT Press Cambridge, 1997. CST Kansil and Christine ST. Kansil, Hukum Tata Negara Republik Indonesia, Jakarta: Rineka Cipta, 1997. David Kairupan, Aspek Hukum Penanaman Modal Asing Di Indonesia, Jakarta: Kencana Prenada Media Group, Edisi Pertama, 2013. Dhaniswara K. Haryono, Hukum Penanaman Modal, Jakarta: Raja Grafindo Persada, 2007, page 68. Lawrence Friedman, American Law, London: W.W. Norton & Company, 1984. M.P. Todaro and S.C. Smith, Pembangunan Ekonomi di Dunia Ketiga, Ed. 8, Jakarta: Erlangga, 2003 M. Sornarajah, The International Law on Foreign Investment, New York: Cambridge University Press, First Edition, 2010. Mochtar Kusumaatmadja and Arief Sidharta, Pengantar Ilmu Hukum, Suatu Pengenalan Pertama Ruang Lingkup Berlakunya Ilmu Hukum, Bandung: PT Alumni, 1999. Molinuevo, Martin and Sebastian Saez, Regulatory Assesment Toolkit, A Practical Methodology for Assesing Regulation on Trade and Investment In Services, International Bank For Reconstruction and Development/The World Bank, 2014. Mustamin Dg. Matutu, “Selayang Pandang tentang perkembangan tipe-tipe Negara Modern,” in Pidato Lustrum ke IV Fakultas Hukum dan Pengetahuan Masyarakat, Ujung Pandang: Penerbit Universitas Hasanuddin, 1972. Richard A. Posner, Economic Analysis of Law, New York: Wolters Kluwer Law & Business in New York, 2014. Salacuse, Jeswald., The Three Laws of International Investment: National, Contractual, and International Frameworks for Foreign Capital, UK: Oxford University Press, First Edition, 2013. Ramp, Roger, Foreign Direct Investment in Emerging Markets – Vietnam and Korea, Berlin: GRIN Publish, 2009. Journal Articles David Smallbone, Foreign Direct Investment and SME Development: Some Policy Issues For Transition and Developing Countries. Duce, Maitena and Banco de Espana, “Definitions of Foreign Direct Investment (FDI): a methodological note”, BIS Meeting of the CGFS Working Group on FDI in the financial sector, 2003. Erman Rajagukguk, Negara Kesejahteraan: Pro Dan Kontra Modal Asing. OECD Benchmark Definition of Foreign Investment (Draft) 4th Edition, DAF/INV/ STAT (2006)2/REV. 3 (2007). Sevil Tuluce and Ibrahim Dogan, The Impact of Foreign Direct Investment on SMEs’ Development. Pham Hoang Ma, FDI and Development in Vietnam, Policy Implications, Institute of Southeast Asian Stidues, 2004. World Bank, Indonesia: Gagasan untuk Masa Depan, Mendukung Usaha Kecil dan Menengah, January 2005. Laws and Regulations The 1945 Constitution of the Republic of Indonesia. Law of the Republic of Indonesia Number 25 of 2007 on Capital Investment. Law of the Republic of Indonesia Number 20 of 2008 on Micro, Small and Medium Enterprises. Government Regulation of the Republic of Indonesia Number 24 of 2018 on Electronically Integrated Business Licensing Services. Presidential Regulation of the Republic of Indonesia Number 76 of 2007 on Criteria and Requirements for Formulation of Business Fields Closed to Investment and Business Fields Conditionally Open to Investment. Presidential Regulation of the Republic of Indonesia Number 90 of 2007 on Indonesian Investment Coordinating Board (BKPM) as amended by Presidential Regulation of the Republic of Indonesia Number 86 of 2012. Presidential Regulation of the Republic of Indonesia Number 44 of 2016 on List of Business Fields Closed to Investment and Business Fields Conditionally Open to Investment. Regulation of the Head of the Indonesian Investment Coordinating Board Number 6 of 2018 on Guidelines and Procedures for Investment Licensing and Facilities. Internet sources Bisnis, https://surabaya.bisnis.com/read/20181104/533/856432/krisis-bahan-baku- karet-gapkindo-minta-pemerintah-turun-tangan [accessed January 17, 2018] Bisnis http://surabaya.bisnis.com/read/20180530/447/800819/industri-makanan- minuman-pasokan-bahan-baku-jadi-kendala- [accessed January 17, 2018] Finansial, “BANK DUNIA: Daftar Negatif Investasi Sebaiknya Dikurangi” 2017, < http://finansial.bisnis.com/read/20170615/9/663098/bank-dunia-daftar-negatifinvestasi-sebaiknya-dikurangi [accessed November 12, 2018]. Kompas, Paket Kebijakan Ekonomi, Pemerintah Tarik Modal Asing, November 17, 2018 Kompas, “Jokowi Coret UMKM dari Relaksasi DNI, Ini Kata Menko Darmin” 2018, [accessed December 25, 2018]. Kontan, https://keuangan.kontan.co.id/news/jumlah-pelaku-umkm-di-2018diprediksi-mencapai-5897-juta-orang [accessed January 9, 2018]. Republika, “Kemenkop Akui UMKM Berpotensi Alami Kredit Macet”, 2018, [accessed December 23, 2018]. Santander Trade Portal, “China: Foreign Investment”, < https://en.portal. santandertrade.com/establish-overseas/china/foreign-investment> [accessed November 6, 2018]. _______, “Indonesia: Foreign Investment”, < https://en.portal.santandertrade.com/ establish-overseas/singapore/foreign-investment> [accessed November 19, 2018]. _______, “Malaysia: Foreign Investment”, < https://en.portal.santandertrade.com/ establish-overseas/malaysia/foreign-investment> [accessed November 4, 2018]. _______, “South Korea: Foreign Investment”, < https://en.portal.santandertrade. com/establish-overseas/south-korea/foreign-investment> [accessed November 6, 2018]. _______,Thailand: Foreign Investment, [accessed November 5, 2018]. _______, “Vietnam: Foreign Investment”, < https://en.portal.santandertrade.com/ establish-overseas/vietnam/investing> [accessed November 6, 2018]. Other sources Indonesian Investment Coordinating Board (Badan Koordinasi Penanaman Modal - BKPM), Perkembangan Realisasi Investasi PMA berdasarkan Laporan Kegiatan Penanaman Modal (LKPM) Menurut Sektor 2017 – 2018. Indonesian Investment Coordinating Board (Badan Koordinasi Penanaman Modal - BKPM), Rencana Strategis BKPM Tahun 2015 – 2019 Bank Indonesia, Laporan Perkembangan Kredit UMKM Triwulan IV 2017. International Monetary Fund, “Balance of Payments Manual Fifth Edition”, Washington, D.C: International Monetary Fund, 1993. Department of State United States of America, “Indonesia Investment Climate Statement 2015”, Department of State United States of America, 2015. Department of State United States of America, “Malaysia Investment Climate Statement 2015”, Department of State United States of America, 2015. KPMG, “Investing in Indonesia”, KPMG Indonesia, 2015. OECD Benchmark Definition of Foreign Investment (Draft) 4th Edition, DAF/INV/ STAT (2006)2/REV. 3, 2007. Rencana Pembangunan Jangka Menengah 2015 – 2019, Buku II Agenda Pembangunan Bidang. Santander Trade Portal, “Indonesia: Foreign Investment”. Joint Press Release on “Pelayanan Sistem OSS Mulai Beroperasi di BKPM Awal Tahun 2019”, dated 21 December 2018 by the Indonesian Coordinating Ministry for Economic Affairs and BKPM. UNCTAD, “World Investment Report 2016: Investment and The Digital Economy”, United Nation, 2016. UNCTAD, “World Investment Report 2017: Investment and The Digital Economy”, United Nation, 2017. World Investment Report 2007: Transnational Corporations, Extractive Industries and Development. Warta KUMKM, Penguatan UMKM untuk Pertumbuhan Ekonomi Yang Berkualitas, Volume 5 – No. 1-2016. World Bank, Indonesia: Gagasan untuk Masa Depan, Mendukung Usaha Kecil dan Menengah, January 2005.

Download

Share

COinS