Restriction and Incentives of Investment in Indonesia: Considering the Provisions of Basic Agrarian Law and Capital Market Law

Nyoman Putu Budiartha
European Research Studies Journal, Volume XXI, Issue 2, 178-188, 2018
DOI: 10.35808/ersj/993


Investment plays an important role in improving the economy, so investment is needed by every country. On the other hand the goal of investors in any investment is to gain profit, so investors expect assurance of investment security. Such security guarantees can be achieved by providing legal assurance of investment, and therefore adequate regulation is required.This study aims to briefly describe the notion of investment in its legal perspective. The study mainly discusses the Indonesian government arrangement in investment, by considering the provisions of two important laws in investment, that are Basic Agrarian Law and Capital Market Law.The results show that Indonesia as a developing country has already established some regulations about investment, especially direct investment, among others in the form of Basic Agrarian Law and Capital Market Law.In the Basic Agrarian Law the granting of land rights has been arranged for investors who are legal entities and individuals, while in the Capital Market Law the incentives and the facilities obtained by investors in the form of direct incentives / facilities are regulated.

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