Strengthening Investment Policy in Indonesia

Abstract

Domestic investment is always less competitive with the rapid flow of investment from foreign investment, so the foreign investment is considered an alternative in need of domestic development capital. The Indonesian government also provides equal opportunities for domestic investment to compete by issuing Law Number 25 of 2007 concerning investment as an instrument to attract investment. This regulation is expected to be a means to promote national interests, which will facilitate foreign capital in controlling production related to the livelihoods of many people and stimulate the economy of the Indonesian people. Although in its implementation, there are still various obstacles such as bureaucracy, regulations, and absorption of local workers.