Regulation of Strategic Investment Downloading in The Growth of Indonesia's Leading Sectors

Abstract

Indonesia has great economic potential with abundant natural resources. However, so far Indonesia is still trapped in the global value chain as an exporter of raw materials. This causes the added value obtained by Indonesia to be low and the Indonesian economy does not grow optimally. The Indonesian government has realized this problem and has issued various policies to encourage downstream investment. This research aims to analyze the downstream regulations for strategic investment in the growth of Indonesia's leading sectors. This research uses normative legal research methods. Research data was obtained from a study of documents and laws and regulations related to downstream investment. The data analysis technique used is qualitative analysis. The data obtained were analyzed using descriptive and interpretive methods. The research results show that the Indonesian government is using an acceleration strategy to increase investment to increase the rate of downstream investment in leading sectors for national economic growth. Regulations for the downstreaming of strategic investments in the growth of leading sectors are regulated in several policies including Law Number 3 of 2020 concerning Amendments to Law Number 4 of 2009 concerning Mineral and Coal Mining, mandating that no longer export raw materials, Law Number 3 In 2014 regarding Industry, OJK issued a policy in the banking industry to support the acceleration program for Battery-Based Electric Motor Vehicles (KBL BB) as well as the development of its upstream industry.