Proceedings of the 2nd International Conference on Social Environment Diversity (ICOSEND 2025)

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Economic and Socio-Environmental Analysis of the Application of Divestment Obligations for Foreign Investors in Semarang City

Authors
Agus Saiful Abib1, *, Dhian Septiandani1, Cita Tsaabiethah Agustria Sasti1
1Faculty of Law, Universitas Semarang, Semarang, Indonesia
*Corresponding author. Email: agussaifulabib@usm.ac.id
Corresponding Author
Agus Saiful Abib
Available Online 30 April 2026.
DOI
10.2991/978-2-38476-565-2_20How to use a DOI?
Keywords
Economic Analysis; Social Environment; Foreign Investors
Abstract

The purpose of this study is to analyze the application of divestment obligations for foreign investors in Semarang City from the perspective of Economic Analysis of Law and its impact on the economic and social aspects of society. This study uses a normative legal method with a legislative, historical, and analytical approach, as well as a descriptive analytical method with secondary data obtained through a literature review of regulations, doctrines, and investment law literature. The results show that the divestment policy is capable of strengthening the role of domestic investors, increasing regional income, and opening up opportunities for partnerships between local and foreign businesses, but its effectiveness is not yet optimal due to bureaucratic constraints, regulatory inconsistencies, and weak supervision. From a social perspective, foreign investment has a positive impact in the form of increased employment and technology transfer, but it also causes social inequality and changes in the economic structure of local communities. Therefore, derivative regulations at the regional level, strengthening of investment supervisory institutions, and inclusive partnerships between foreign investors and MSMEs are needed so that divestment policies can run efficiently, fairly, and sustainably for the welfare of the community.

Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2nd International Conference on Social Environment Diversity (ICOSEND 2025)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
30 April 2026
ISBN
978-2-38476-565-2
ISSN
2352-5398
DOI
10.2991/978-2-38476-565-2_20How to use a DOI?
Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Agus Saiful Abib
AU  - Dhian Septiandani
AU  - Cita Tsaabiethah Agustria Sasti
PY  - 2026
DA  - 2026/04/30
TI  - Economic and Socio-Environmental Analysis of the Application of Divestment Obligations for Foreign Investors in Semarang City
BT  - Proceedings of the 2nd International Conference on Social Environment Diversity (ICOSEND 2025)
PB  - Atlantis Press
SP  - 165
EP  - 169
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-565-2_20
DO  - 10.2991/978-2-38476-565-2_20
ID  - Abib2026
ER  -