Trends And Issues of The Investment Legal Revolution Evidence of The Omnibus Law Job Creation

Hartini Atikasari


The multidimensional crisis due to the COVID-19 pandemic has implications for the country's economy. Foreign investors are sought to help extinguish the threat of a deficit in state finances through foreign investment (FI). Access to investment, which was initially limited in nature, has become quite flexible due to the promulgation of the Omnibus Law on Job Creation. Legislative reform which was colored by intrigue and controversy was packaged as a way out for national development and economy, especially as a response to the prevention of the country's financial crisis. This research examines the implementation of FI regulations on the investment climate in Indonesia, especially during the period of COVID-19 pandemic and a critical narrative towards the Omnibus Law on Job Creation which represents the investment legal revolution. By using normative legal research methods, this research is expected to be able to answer the above legal issues through a statutory approach and literature law materials which include scientific works and research results. The results show that the implementation of FI regulations in Indonesia is still classified as complicated so that the effect is the low interest of foreign investors to invest their capital in Indonesia. Although the government through the Capital Investment Coordinating Board has attempted to overcome this problem by pioneering the establishment of the One Stop Integrated Service and Investment Service, the COVID-19 pandemic has made it more difficult for the realization of foreign investment in Indonesia. On the other hand, Government policy in reforming investment law in Indonesia through the Omnibus Law on Job Creation too prioritizing economic targets that are not proportional to the threat of state sovereignty and guarantee of people's welfare.

Full Text:



a)Legal Documents

Indonesia. (2020). Law Number 11 of 2020 concerning Job Creation. State Gazette of 2020, Number 245. State Secretariat. Jakarta.

Indonesia. (2007). Law Number 25 of 2007 concerning Investment. State Gazette of 2007, Number 67. State Secretariat. Jakarta.

Indonesia. (2021). Presidential Regulation Number 10 of 2021 concerning the Investment Business Field. State Gazette of 2021, Number 61. State Secretariat. Jakarta.


Echandi, Roberto. (2013). Prospects in International Investment Law and Policy. Edited by Pierre Sauve. Cambridge: Cambridge University Press.

Harjono, Dhaniswara K. (2012). Hukum Penanaman Modal : Tinjauan Terhadap Pemberlakuan Undang-Undang No. 25 Tahun 2007 Tentang Penanaman Modal. Jakarta: Pusat Pengembangan Hukum dan Bisnis Indonesia.

Hughes, Helen. (1996). Perspectives for an Integrating World Economy: Implications for Reform and Development. Singapore: Institute of Southeast Asian Studies.

Ibrahim, Johnny. (2013). Teori Dan Metodologi Penelitian Hukum Normatif. Malang: Bayu Media Publishing.

Lewis, Arthur. (1998). Dasar-Dasar Hukum Bisnis (Introduction to Business Law). Bandung: Nusa Media.

Morisset, Jacques, and Andrews-Johnson, Kelly. (2004). The Effectiveness of Promotion Agencies at Attracting Foreign Direct Investment. Washington: The World Bank.

Pramono, Nindyo. (2013). Hukum PT Go Public Dan Pasar Modal. Edited by Dewi H. 1st ed. Yogyakarta: ANDI.


Abidin, R. F. (2017). Harmonisasi Peraturan Penanaman Modal Asing Dalam Bidang Pertambangan Mineral Dan Batubara Berdasarkan Prinsip Keadilan (Studi Kontrak Karya Antara Pemerintah Republik Indonesia Dengan PT. Freeport Indonesia). Az Zarqa’, 9 (2), 315–364.

Adang, Abdullah. (2007). Tinjauan Hukum Atas UU Penanaman Modal Nomor 25 Tahun 2007: Sebuah Catatan. Jurnal Hukum Bisnis, 26 (4).

Bonnitcha, Jonathan. (2016). Foreign Investment, Development and Governance: What International Investment Law Can Learn from the Empirical Literature on Investment. Journal of International Dispute Settlement, 7 (1), 31–54. doi:

Hangabei, Sinung M., Dimyati, Khudzaifah, and Surbakti, Natangsa. (2020). Oversee Investment and Indonesia Economic Regulatory Reform in the Era of Globalization and Industrial Revolution 4.0. International Journal of Advanced Science and Technology, 29 (4), 5123–5138.

Hernawati, R.A.S, and Suroso, J.T. (2020). Kepastian Hukum Dalam Hukum Investasi Di Indonesia Melalui Omnibus Law. Jurnal Ilmiah MEA (Manajemen, Ekonomi, dan Akuntansi, 4 (1), 392–408. doi:

Hursepuny, Johan. (2019). Penanaman Modal dan Permasalahannya di Indonesia. JISAMAR (Journal of Information System, Applied, Management, Accounting and Researh), 3 (2), 72–78. .

Jened, Rahmi, and Indahsari, Betharia Noor. (2019). Lessons Learned from the British Exit from the European Union for Indonesia and the ASEAN Economic Community. Hasanuddin Law Review, 5 (1), 132–139. doi:

Moccero, Diego. (2008). Improving the Business and Investment Climate. OECD Economics Department Working Paper, No. 638, 59–87. doi:

Putri, Resha Roshana, et. al. (2018). Peringkat Arus Investasi Indonesia Dalam Kerangka Asean-China Free Trade Agreement (Perbandingan Dengan Singapura, Malaysia, Thailand, Dan Vietnam) Ditinjau Dari Prinsip Fair and Equitable Treatment. Jurnal Hukum & Pembangunan, 48 (2), 275-298. doi:

Wamafma, Filep, et. al. (2019). The Arrangement of Investment Policy for the Protection of Indigeneous People’s Rights. Hasanuddin Law Review, 5 (2), 253–261. doi:


Bank Indonesia. (2020). Bab 5 Artikel I: Dampak Coronavirus Terhadap Ekonomi Global. Jakarta.

———. (2020). Laporan Pelaksanaan Tugas Dan Wewenang Bank Indonesia Triwulan III 2020. Jakarta. Available online from: [Accessed March 15, 2021].

Capital Investment Coordinating Board of Republic of Indonesia. (2021). Realisasi Penanaman Modal PMDN-PMA Triwulan IV Dan Januari - Desember Tahun 2020. Available online from: [Accessed March 15, 2021].

One Stop and Investment Service. (2021). Begini Cara Pemerintahan Jokowi Ciptakan Iklim Investasi. Available online from: [Accessed March 15, 2021].

United Nations Conference on Trade and Development. (2021). Investment Trends Monitor: Global FDI Flows Down 42 % in 2020, Further Weakness Expected in 2021, Risking Sustainable Recovery. Available online from: [Accessed March 15, 2021].

World Trade Organization. (2020). Trade Set to Plunge as COVID-19 Pandemic Upends Global Economy. Available online from: [Accessed March 15, 2021].


  • There are currently no refbacks.