Vika Analica

20140510304

INTERNATIONAL TRADE OF LAW

Drs. Jumadi M. Anwar, M.Si.

Law of the Republic of Indonesia Number 25 Year 2007 on Investment

PART I
GENERAL REQUIREMENTS
article 1
1. Investment is any form of investing activity by both domestic investors and foreign
investors to do business in the territory of the Republic of Indonesia.
CHAPTER II
PRINCIPLES AND OBJECTIVES
Article 3
(1) Investments held by the principle of legal certainty, transparency, accountability.
CHAPTER III
BASIC INVESTMENT POLICY
Article 4
(1) Sets out the basic policy of investment in order to encourage the creation of national
business climate conducive to investment in order to strengthen the competitiveness of
the national economy and accelerate an increase in capital investment.
CHAPTER IV
FORM OF ENTERPRISE AND STATUS
Article 5
(1) Domestic investment can be done in the form of business entity is a legal entity, not a
legal entity or individual, in accordance with the provisions of the legislation.
CHAPTER V
TREATMENT OF INVESTMENT
Article 6
(1) The government gives equal treatment to all investors originating from any country that
conduct investment activities in Indonesia in accordance with the provisions of the
legislation.
CHAPTER VI
EMPLOYMENT
Article 10
(1) The Company's investment in meeting the needs of the labor must give priority to
manpower Indonesian citizens.
 CHAPTER VII
BUSINESS FIELDS
Article 12
(2) The closed business field for foreign investors is the production of weapons, ammunition,
explosives, and war equipment and business fields explicitly declared closed by law.
CHAPTER VIII
DEVELOPMENT INVESTMENT
FOR MICRO, SMALL, MEDIUM, AND COOPERATION
Article 13
(1) The Government shall establish business fields reserved for micro, small, medium, and
cooperatives and business fields open to large businesses with a condition that they must
cooperate with micro, small, medium, and cooperatives.
CHAPTER IX
RIGHTS, DUTIES AND RESPONSIBILITIES OF INVESTORS
Article 14
Each investor is entitled to rights, the law, and the protection of open information regarding
business sector is running
CHAPTER X
INVESTMENT FACILITIES
Article 18
(1) The Government shall provide facilities to investors making an investment.
CHAPTER XI
ENDORSEMENT AND LICENSING COMPANY
Article 25
(1) investors making investment in Indonesia should be in accordance with the provisions of
Article 5 of this Law.
CHAPTER XII
COORDINATION AND IMPLEMENTATION
INVESTMENT POLICY
Article 27
(1) The Government coordinating investment policies, better coordination between the
Government, the Government agencies with Bank Indonesia, government agencies and
regional government, as well as among local governments.
Chapter XIII
OPERATION OF AFFAIRS CAPITAL INVESTMENT
Article 30
(1) The Government and / or regional government to ensure certainty and security sought for
the implementation of capital investment.
Chapter XIV
SPECIAL ECONOMIC ZONES
Article 31
(1) In order to accelerate economic development in some region that are strategic for the
development of the national economy and to maintain balance in the progress of a region,
can be defined and developed a special economic zone.
 CHAPTER XV
DISPUTE RESOLUTION
Article 32
(1) In the case of a dispute in the field of investment between the Government and investors,
the parties must first resolve the dispute through consultation and consensus.
CHAPTER XVI
SANCTIONS
Article 33
(1) Investors of domestic and foreign investors making an investment in the form of a limited
liability company are prohibited from making agreements and / or a statement confirming
that the ownership of shares in a limited liability company and
on behalf of others.
CHAPTER XVII
TRANSITIONAL PROVISIONS
Article 35
International agreements, whether bilateral, regional or multilateral, in the field of
investment that has been approved by the Government of Indonesia prior to this Act
applies shall remain valid until the expiry of the agreement.
Chapter XVIII
CLOSING
Article 38
With the enactment of this Act:
a. Law No. 1 of 1967 concerning Foreign Investment (State Gazette of the Republic of
Indonesia Year 1967 Number 1, Supplement to the State Gazette of the Republic of
Indonesia Number 2818) as amended by Act No. 11 of 1970 on the Amendment and
Supplement to Law Number 1 Year 1967 regarding Foreign Investment (State Gazette
of the Republic of Indonesia Year 1970 Number 46, Supplement to State Gazette of
the Republic of Indonesia Number 2943).