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Journal : Yuridika

The Foreign Direct Investment Policy Which Reflects the Proportional Protection Yuniarti Yuniarti; Muchammad Zaidun
Yuridika Vol. 34 No. 2 (2019): Volume 34 No 2 May 2019
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (357.486 KB) | DOI: 10.20473/ydk.v34i2.13233

Abstract

Investment law is an urgently required regulation to regulate an investment activity. Hence the formulation within those laws has not yet provided a balance protection for all parties; those are the home countries, host countries and investors. The investment law itself regulate by 3 different kinds of laws, that is the customary international law, national law and contract law. Regulating investment activities in host states will have to consider the customary international law, as the international framework. This law is applicable due to the different jusrisdiction involved within the business activities. Indonesia investment law regulation firstly introduced by law number 1/1967 concerning foreign direct investment. Subsequently, it was amended by law number 25/2007 concerning Investment Law. However, some research has to be carried out regarding the protection of the parties. This research analysed the principle of proportionality interest protection to provide a fair protection of parties. Eventually, the protection of the state as host country and investors as the alien in host country.This research is a normative legal research, which use statute approach, historical approach and conceptual approach to determine the principle that could be used to maximize the protection of actors within the investment activities in Indonesia.
Investor Legitimate Expectation and Indirect Expropriation in Domestic Regulation Concerning the Application of Domestic Raw Application Muchammad Zaidun; Yuniarti; Widhayani Dian Pawestri
Yuridika Vol. 37 No. 2 (2022): Volume 37 No 2 May 2022
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/ydk.v37i2.36278

Abstract

Law No 11/2020 concerning Job Creation (Omnibus Law’) mandates the use of domestic raw materials for all industries in Indonesia. Following the passage of the Omnibus Law, Indonesia issued Government Regulation No 28/2021 concerning Industrial Management and Presidential Regulation No 12/2021 concerning the amendment of Presidential Regulation No 16/2018 concerning Government Procurement of Goods and Services. Both regulations oblige all industries in Indonesia to use domestic raw materials pursuant to the Omnibus Law. In investment law, this kind of policy could lead to indirect expropriation because when an investor makes an investment in a host country, the raw material and machines for production might come from their home state or other states. Furthermore, a public-private partnership contract with investors funding infrastructure projects for at least 50 years using materials agreed upon in advance will lead to indirect expropriation. The method used in this research was legal research theory with statute and conceptual approaches. From this research, the policy of the Indonesian government can be described as indirect expropriation because the regulation is effective and enforced.