According to Law No. 25/2007 on Investment, it defines investment as any form of investment activity to conduct business in the territory of the Unitary State of the Republic of Indonesia.
Investment in Indonesia itself is divided into 2 (two) types, namely domestic investment (PMDN) and foreign investment (PMA). Domestic investment is an investment activity to conduct business in the territory of the Republic of Indonesia carried out by domestic investors using domestic capital, while foreign investment is an investment activity to conduct business in the territory of the Republic of Indonesia carried out by foreign investors, either using foreign capital entirely or joining with domestic investors. Individuals or business entities that carry out investment activities are referred to as investors or better known as investors.
With the increasing economic growth in Indonesia, which is the third country in the world with the best economic growth rate in 2016, it will certainly further increase the enthusiasm of foreign and domestic business actors to start or even increase the scale of their business. Business investment on Indonesian soil. The principles that become the principles of investment in Indonesia are also very important to be understood by both domestic and foreign investors as formulated in Investment Law as follows:
1. Legal certainty;
4. Equal treatment and no distinction of country of origin;
6. Fair efficiency;
8. Environmentally friendly;
9. Independence; and
10. Balance of progress and national economic unity.
In managing investment licensing in Indonesia, it is found that the licensing process or procedure is convoluted and very inefficient. In the business world, time is money and of course the performance of time-consuming licensing processes will be very detrimental to investors who want to start and develop their business, then do foreign investors get guaranteed protection or even compensation when investors are hampered by the bureaucratic performance of government agencies in Indonesia? It is important for foreign and domestic investors to at least have a qualified and experienced legal advisor/consultant to assist/prevent potential losses as described in the licensing issues above.
Can foreign investors withdraw all profits from their investments in Indonesia to their personal accounts or are there certain restrictive rules? If there is maladministration by a government agency, then to whom can foreign investors report and get legal protection? Of course, foreign and domestic investors must get maximum legal guarantees because they are the spearhead of Indonesia's economic improvement.
On the other hand, are there sanctions for Foreign Investors (PMA) who do not comply with statutory provisions such as deliberately not hiring native Indonesian workers, not providing training to native Indonesian workers as stipulated in the Law?
Of course there are many other questions that require adequate explanation and legal guidelines that will have a very positive impact on investors who want to start and develop their business in Indonesia.
On the other hand, are there sanctions for Investors/Foreign Investors (PMA) who do not comply with statutory provisions such as deliberately not hiring indigenous Indonesian workers, not providing training to indigenous Indonesian workers as stipulated in the Law?
Of course there are many other questions that require adequate legal explanations and guidelines that will have a very positive impact on investors who want to start and develop their businesses in Indonesia.
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