Legal Aspect of Foreign Direct Investment in Indonesia Based on the Law of Number 25 of the Year 2017 Concerning Investment

Sentosa Sembiring


Indonesia as a developing country in various sectors requires substantial funding. Government funds are very limited. One of the alternatives to move the wheels is to invite foreign investors. Aims of this research is to obtain legal certainty in making investments, the government renewed the legal basis of investment namely issuing Law Number 25 Year 2007 on Investment. In this law has been adopted from international agreements associated with the investment regime. In principle it is not an area of investment that can be entered by open investors in all areas. In order to have legal certainty the government issues a negative list of investments. To improve services to investors in this law is authorized by the Investment Coordinating Board to coordinate one-stop services.


Foreign Investment Coordinating Board; Foreign Investment Law; Negative Investment List

Full Text:



Bunawan, P. (2017). Foreign investment in Indonesia The Legal Aspects under the New Indonesian Investment Law, 8(65), 1–14.

Campbell, D. (1985). Legal Aspects of Doing Business in Asia And The Pacific, (ed) International Business Series. Deventer/ Netherlands: Kluwer Law and Taxations.

Dar, U., & K. Dar, P. (1979). Investment Opportinities In Asean Countries. New Delhi.

Erawaty, E. (2007). Legal Aspects Of Foreign Direct Investment In Indonesia : An Overview, 1–30.

Himawan, C. (1980). The Foreign Investment Process In Indonesia. Jakarta: Gunung Agung.

Law of the Republic of Indonesia Number 25 Year 1992 on Cooperatives

Law Number 7 Year 1994 about Ratification of Agreement Establishing the World Trade Organization.

Law of the Republic of Indonesia Number 20 Year 2008 About Micro, Small and Medium Enterprises of Law Number 30 of 2004 as amended by 2 of 2014 concerning Notary Position.

Law of the Republic of Indonesia Number 24 Year 2009 Regarding Flag, Language, and State Coat, and National Anthem

Law of Republic of Indonesia Number 40 Year 2007 Concerning Limited Company

Law of Republic of Indonesia Number 25 Year 2017 Concerning Investment Code of Civil law Indonesia

Rakili, N. (2013). Foreign Direct Investment in legal perspective, Master International and European Business Law. University van Tilburg.

Ramli, A. M. (1994). Company Status Under Private International Law Theory and Practice. (Status Perusahaan Dalam Hukum Perdata Internasional Teori dan Praktik). Bandung: Mandar Maju.

Sembiring, S. (2010). Investment Law (Hukum Investasi). Bandung: Nuansa Aulia.

Sonarajah, M. (1994). The Internationl Law on Foreign Investment. Cambrige University Press.

Sumantoro. (1991). Bunga Rampai Permasalahan Penanaman Modal dan Pasar Modal (Problems of Investment in Equities and in Securities). Bandung: Binacipta.

The 1945 Constitution of the State of the Republic of Indonesia has been amended several times and the fourth most recent amendment of 2002.



  • There are currently no refbacks.

Creative Commons License
Sociological Jurisprudence Journal is licensed under a
Creative Commons Attribution-ShareAlike 4.0 International License.

View My Stats