International Journal of Law
International Journal of Law
International Journal of Law
Vol. 5, Issue 6 (2019)

Reconstruction of foreign investment policy in indonesia based on social justice values


Gunarto, Arif Rochman, Amin Purnawan

Foreign investment in Indonesia, as a member of the ASEAN (Association of South East Asia Nations) still does not show a level of balance, especially in the level of domestic product domination in Indonesia when compared to the value/amount of domestic investment (PMDN), or in words another level of capital dependence from foreign investment activities in Indonesia is still very high and significant. It is becoming the basis of the author in the making work of the scientific is the fundamental problem of how to reconstruct foreign investment policy system in Indonesia, by promoting the theory/concept of distributive justice which is better than procedural justice/formality. To be able to analyze the subject matter well, the authors in conducting research adheres to the paradigm of constructivism, using sociological juridical legal research. Research data sources consist of primary data sources and secondary data sources, and qualitative descriptive analysis Results of the research showed that to be able to reconstruct the policy system of foreign investment in Indonesia the Indonesian Government needs to take action in the form of a policy system of foreign investment reconstruction in Indonesia, by putting forward the theory/concept of distributive justice rather than procedural justice/formalities. In the concept of distributive-substantive justice, the portion of the division of non-renewable natural resource business sectors, as well as the share ownership of Joint venture/enterprise and the portion of granting tax relief and other fiscal relief policies must also be given to domestic investors, especially those of MSMEs and cooperatives. The Government of Indonesia is still pragmatic and prefers the position of PMA investors as 'special guests' of the national investment forefront, so it is absolutely necessary to get preferential treatment compared to domestic investors. So that the presence of PMA investors at a certain point must be positioned as a complementary party (Complementary) and not the main target of treatment to get policies / facilities over investment facilities that are too excessive.
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How to cite this article:
Gunarto, Arif Rochman, Amin Purnawan. Reconstruction of foreign investment policy in indonesia based on social justice values. International Journal of Law, Volume 5, Issue 6, 2019, Pages 85-90
International Journal of Law