The Impact of Globalisation on Investment Practice in

Indonesia

Baiq Himawanti Nandita Putri – ml19990

Class 42 – Listening/Speaking PSE Course C Law
August 31, 2020
 Outline
□ Indonesia Legal Background
□ Investment Arrangements in
Globalisation Era through Laws and
Regulations in Indonesia
□ Conclusion

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Indonesia Legal Background

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 Historical
Background □ Indonesia adopted the legal system of
Civil Law legal system  codified
□ The enactment procedure and the
hierarchy of written Laws are governed
by Law No. 10 of 2004 on Enactment of
Laws
□ The Constitution is known as the
Undang-Undang Dasar 1945 or UUD
1945

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Investment Arrangements in Globalisation Era through
Laws and Regulations in Indonesia

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 Definitions □ Law is a set of life instructions or orders and prohibitions
that regulate the order in a society which members of the
community should obey (Utrecht, 1983).
□ Law is the whole of legal rules, whether made by the state
or those that live and develop in society with the aim of
protecting the interests of society (Salim, 2009, p. 26).
□ Globalisation can be defined as an extensive network
economic, cultural, social and political interconnections
and processes which goes beyond national boundaries
(Yeates, 2001).
□ Investment is any form of investing activity, either by
domestic investors or foreign investors to conduct
business within the territory of the Republic of Indonesia.

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 Investment and
Globalisation in
Indonesia □ What is the relationship between
law, investment and
globalisation?

■ Investors need one measure

to guide their investment
activities

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 Investment and
Globalisation in Laws and Regulations Arrangements:
Indonesia
□ The enactment of Law No. 25 of 2007 on Capital
Investment
■ Previous regulations Law No. 1 of 1967 jo.
Law No. 11 of 1970 concerning Foreign
Investment and Law No. 6 of 1968 jo. Law
No. 12 of 1970 concerning Domestic
Investment
□ The enactment of Government Regulation No. 38
of 2007 on Division of Government Affairs
between the Government, Provincial Regional
Government, and District Government

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 Investment and
Globalisation in Arrangements conducted by related
Indonesia institutions:

□ Related institution  Indonesia Investment

Coordinating Board / Badan Koordinasi
Penanaman Modal (BKPM)
□ Implementation of One Door Integrated Services
and Online Single Submission
■ For the ease of investors in obtaining licenses
required for investment
□ Investors are given the right to use their rights to
land in the territory of Indonesia

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 List of References
□ Angkasa, N.R. (2017). Development of investment in indonesia. Pranata hukum,
12(2), pp.64–72.
□ Carunia Firdausy and Pusat Penelitian Ekonomi (2004). Liberalisasi perdagangan
dan investasi di era globalisasi. Jakarta: Pusat Penelitian Ekonomi, Lembaga Ilmu
Pengetahuan Indonesia.
□ Halliday, T.C. and Osinsky, P. (2006). Globalization of Law. Annual Review of
Sociology, 32, pp.447–500.
□ Salim H. S. and Budi Sutrisno, (2008). Hukum Investasi Di Indonesia. Jakarta:
Rajawali Pers, RajaGrafindo Persada.
□ Soerjono Soekanto and Sri Mamudji (2001). Penelitian hukum normatif : suatu
tinjauan singkat. Jakarta: Rajagrafindo Persada.
□ Suteki (2010). Kebijakan tidak menegakkan hukum (non enforcement of law) demi
pemuliaan keadilaan substantif : pidato pengukuhan disampaikan pada upacara
penerimaan jabatan guru besar dalam Ilmu Hukum pada Fakultas Hukum,
Universitas Diponegoro, Semarang, 4 Agustus 2010. Semarang: Badan Penerbit
Universitas Diponegoro.

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 Questions

What is your opinion on the contribution of foreign direct

investment for developing country such as Indonesia in this
globalisation era?

Does it also give impact for the application of laws and

regulations that govern its investment practice?

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Conclusion

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 Conclusion □ Relationship between law and globalisation is very close
□ When globalisation has been accepted by society, it has
turned into a law that binds the community
□ The form of improvement of investment law development
in Indonesia in accordance with the global order is
through the establishment of Law No. 25 of 2007 on
Investment
□ One Door Integrated Services and Online Single
Submission with intention that later service to investors
will be faster and efficient

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