Investment serves as a crucial instrument for driving economic growth in Indonesia and financing national development. Enhancing Indonesia's development capacity cannot rely solely on internal funds; it requires leveraging external financing sources—such as international loans, development aid, and, most notably, foreign investment. Investment is a vital economic activity that supports the business sector within a country. Investors play a critical role in assisting the state with the financing required for national infrastructure development. Given the importance of investment to the economy and the business landscape, such investments require state protection. This study aims to examine the impact of investment on investors in Indonesia and the legal protections afforded to them. It employs a normative legal research method, analyzing documents and utilizing various primary and secondary data sources—including legislation, court rulings, legal theories, and scholarly opinions. The study is descriptive in nature, with the author seeking to provide an in-depth, detailed, and comprehensive description of the subject matter. The findings indicate that the Investment Law is essentially a statute crafted to create an appealing environment for investment. Developing nations often lack strong bargaining power against the forces of globalization, leaving them in a weakened position. The Investment Law focuses solely on capital investment, yet such investments often entail the "embedding" of other interests within the country—such as the interests of foreign states and corporations, as well as implications for environmental sustainability. Foreign investment serves as a crucial source of funding for Indonesia's national-scale development. However, major obstacles affecting the investment climate include regulatory uncertainty, sudden policy shifts, legal disputes with the government, bureaucratic hurdles, corruption, political and social risks, and inconsistent law enforcement. Furthermore, macroeconomic risks—such as economic crises and exchange rate fluctuations—also impact investment stability. Consequently, legal protection must not merely serve as a formal instrument; it requires the backing of a stable, consistent, and transparent legal framework that is free from political interference. The government must continue to enhance the effective implementation of regulations and provide robust legal certainty to minimize conflict and boost Indonesia's appeal as a stable, secure, sustainable, and profitable investment destination for both foreign and domestic investors.