| dc.description.abstract | Foreign investment is a form of activity that produces certain goods or services that are necessary for human life. By the teachings of the rule of law, foreign investment must be regulated to become part of legal politics. Foreign investment is beneficial (multiplier effect) in absorbing labor; creating demand for domestic products as raw materials; increasing foreign exchange; increasing state revenue from the tax sector; as well as technology transfer and knowledge transfer. However, ideologically, some see foreign investment as contrary to the constitution, especially in countries that do not adhere to a liberalism-capitalism economic system like Indonesia. Here the importance of applying the theory of legal objectives in the legal politics of foreign investment.
There are three problems in this research. First, what is the position of foreign investment in the Indonesian economic system? Second, how is the political development of foreign investment law based on current regulations? Third, what is the ideal legal politics of foreign investment in realizing people's welfare?
This research is normative juridical using conceptual, statutory, historical, and comparative legal approaches. The legal materials used are primary, secondary, and tertiary legal materials. Meanwhile, the technique for collecting legal materials is through literature study and interviews. The legal material is analyzed to reveal how the theory of legal objectives is applied in the legal politics of foreign investment in accordance with the Indonesian economic system.
The research conclusions are, first, foreign investment is part and complement of the Indonesian economic system and is in accordance with the values of Pancasila and the 1945 Constitution, especially national values. Second, the legal politics of foreign investment in Indonesia always follow political, economic, and international developments and current regulations are not free from several shortcomings. Third, the ideal legal politics of foreign investment is a legal policy profitable for both foreign investors and Indonesia. Therefore, it is recommended that foreign investment needs to be regulated by paying attention to aspects of justice, benefit, and certainty so that its presence plays a role in realizing national goals as stated in the Fourth Paragraph of the Preamble to the 1945 Constitution of the Republic of Indonesia. | en_US |
