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Original Research

CONSTRAINTS ON LEGAL PROTECTION FOR FOREIGNERS INVESTING IN INDONESIA

SARKAWI 1, and AINUDDIN 2.

Vol 18, No 05 ( 2023 )   |  DOI: 10.17605/OSF.IO/2WG6Q   |   Author Affiliation: Faculty of Law Mataram University, St. Majapahit No. 62 Mataram, West Nusa Tenggara 1; Faculty of Law, University of Islam Al-Azhar, St. Unizar No. 20, Turida, Sandubaya, Mataram City, West Nusa Tenggara 2.   |   Licensing: CC 4.0   |   Pg no: 1086-1099   |   Published on: 19-05-2023

Abstract

Indonesia requires significant investment capital so that national income increases. Indonesia has quite a lot of potential that foreign investors can exploit, but the level of foreign investment still needs to be higher. Therefore, the government seeks to increase the number of foreign investments through various means such as improving legal certainty, procedures, simplification, enhancing information systems, developing Special Economic Zones, expanding opportunities for foreigners to invest, increasing the ease of doing business to stimulate foreign investors' interest in investing in Indonesia. However, investment problems arise in people's lives, so in this article, the author raises issues regarding juridical and non-juridical obstacles in providing legal protection for foreigners investing in Indonesia. The results of the discussion are that Constraints on legal protection for foreigners investing in Indonesia as follows: (a) Juridical constraints, namely laws and regulations related to foreign investment, certificates that do not guarantee legal certainty of ownership, incompatibility with investment regulations, and Agreement Validity; (b) Non Juridical Constraints include Domestic Factors and Foreign Factors and Social Factors.


Keywords

Constraints, Legal, Protection, Foreigners, Investing, Indonesia