Indonesian Model Foreign Direct Investment (Omnibus Law): Learning from China

Abstract

The paper responds on critical aspects between Indonesian Foreign Direct Investment Regulation (FDI) Act and China Foreign Investment Laws (FIL). China is relatively more developed, socially and economically over other countries, as viewed by scholars and foreign investors as an ideal place for foreign direct investment, partly due to its well-educated population, low labor costs, natural resources, and the adoption of an open-door policy. China have made remarkable FDI accomplishment through their own ways. Meanwhile, Indonesia is using an omnibus legislative strategy to entice foreign investors to invest in the country by modifying 74 FDI regulations. The study took a comparative approach to normative legal research. In addition, the goal of this study is to introduce the FDI legal model to Indonesia. And explores the debate issue on whether creating the omnibus law is a contradiction to Indonesian legal system. Moreover, intends to conclude by arguing that Indonesia should reconsider the omnibus law approach and refer to the lesson from the experience of China and Singapore.