Proceedings of the 1st International Forum on Psychology, Law, and Education (IFPLE 2025)

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The Complexity of Foreign Investment Problems in Indonesia (Legal and Non-Legal Analysis)

Authors
Ismed Batubara1, *, Sahbudi Sahbudi1, Mahrum Maini1
1Faculty of Law, UMN Al Washliyah, Medan, Indonesia
*Corresponding author. Email: ismedbatubara@umnaw.ac.id
Corresponding Author
Ismed Batubara
Available Online 3 January 2026.
DOI
10.2991/978-2-38476-531-7_60How to use a DOI?
Keywords
Foreign Investment; Investment Law; Regulatory Complexity; Corruption; Investment Climate
Abstract

The purpose of this study is to describe the complexity of investment law problems in Indonesia. As a problem, solutions must be sought from both legal and non-legal perspectives, as law does not exist in a vacuum. This research is empirical and juridical with an interdisciplinary research approach. The findings indicate that obstacles to investment law in Indonesia are both legal and non-legal (political, economic, and social) factors. Legal factors include overlapping regulations and bureaucratic corruption, while non-legal factors include geopolitical tensions and regional conflicts, and fluctuations in commodity prices. To address the issue of corruption, Indonesia has implemented various measures, including the establishment of anti-corruption bodies such as the Corruption Eradication Commission (KPK) and the implementation of stricter monitoring systems. However, the effectiveness of these efforts still needs to be improved in order to significantly minimize corrupt practices. Legal reforms focusing on transparency, accountability, and strict enforcement of the law are crucial in creating a more conducive investment climate. These challenges require more coordinated regulatory reforms, strict and transparent law enforcement, as well as sustainable political and economic stability. Such efforts will enhance investor confidence and strengthen Indonesia’s position as a competitive investment destination.

Copyright
© 2025 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 1st International Forum on Psychology, Law, and Education (IFPLE 2025)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
3 January 2026
ISBN
978-2-38476-531-7
ISSN
2352-5398
DOI
10.2991/978-2-38476-531-7_60How to use a DOI?
Copyright
© 2025 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  - Ismed Batubara
AU  - Sahbudi Sahbudi
AU  - Mahrum Maini
PY  - 2026
DA  - 2026/01/03
TI  - The Complexity of Foreign Investment Problems in Indonesia (Legal and Non-Legal Analysis)
BT  - Proceedings of the 1st International Forum on Psychology, Law, and Education (IFPLE 2025)
PB  - Atlantis Press
SP  - 617
EP  - 623
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-531-7_60
DO  - 10.2991/978-2-38476-531-7_60
ID  - Batubara2026
ER  -