Legal Certainty in Foreign Investment Activities of Tourism in North Sumatra Within the Framework of ASEAN Economic Communities

DOI

10.2991/assehr.k.200306.214How to use a DOI?

Keywords

Foreign Investment, legal certainty, dispute resolution

Abstract

Foreign Investment plays an essential role in both developed and developing countries. The flow of Foreign Investment to developing countries has experienced significant developments in the last 15 years, including Indonesia. Indonesia establishes details of business fields that are open to foreign capital in the order of priority and determines the conditions that must be fulfilled by Foreign Investors in every business. Therefore, the main problems to be examined in this study are: how is the procedure for establishing a Foreign Investment Company within the framework of the ASEAN Economic Community (AEC)?, why is there a need for legal certainty in the foreign investment activities of the tourism sector within the framework of the ASEAN Economic Community?, then what is the process of resolving the Foreign Investment disputes in the tourism sector in North Sumatra in facing the ASEAN Economic Community? The research method used in this dissertation research is normative legal research (normative juridical) with the consideration that the focus of research is to study primary,secondary, and tertiary legal materials related to legal certainty issues for investors who invest their capitals in Indonesia. The normative legal characteristics in this study are also seen from the research objectives which are basically to generate concepts, principles, doctrines that underlie the laws and regulations governing legal certainty for investors who invest their capital in Indonesia. The characteristics will be then developed to obtain clues,inputs, or suggestions on things that must be done to overcome problems of unavailability of investors to invest in Indonesia. The normative research output is expected to contribute to the improvement of existing laws and regulations, especially those relate to the provisions of the ASEAN Economic Community. The results of the dissertation study prove that: firstly, the provisions on Foreign Investment in the tourism sector within the framework of the ASEAN Economic Community have not referred to regional provisions in the framework of the AEC. Secondly, the Foreign Investment Activities of the tourism sector in the face of the ASEAN Economic Community has not shown any legal certainty. It is because the provisions governing foreign investment in the tourism sector in Indonesia are constantly changing, as in the case with law enforcement efforts in the judge’s decision to ignore the arbitration decision for reasons of public order. Thirdly, the foreign investment dispute resolution process in the tourism sector in North Sumatra within the framework of the ASEAN Economic Community refers to the choice of law for the parties. On all occasions, the parties choose the dispute resolution process by selecting arbitration after the deliberations have not been achieved. Based on these conclusions, the recommendations are made aligned with the Law Number 25 Year 2007 concerning Investment that needs to be regulated in its article regarding the provisions of Foreign Investment within the framework of the ASEAN Economic Community. There are a needs for the government of North Sumatra Province to improve relevant regulations to attractforeign investment in tourism especially in supporting infrastructure, and also a need to synchronize the provisions of Law Number 25 Year 2007 concerning Investment with the provisions of the North Sumatra province in the form of Regional Regulations. Consequently, the local wgovernment should create legal certainty for foreign investors in investing their capital in Indonesia, especially in North Sumatra.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Yenni Kosmanto
AU  - Budiman Ginting
AU  - Runtung
AU  - Suhaidi
PY  - 2020
DA  - 2020/03/13
TI  - Legal Certainty in Foreign Investment Activities of Tourism in North Sumatra Within the Framework of ASEAN Economic Communities
BT  - Proceedings of the International Conference on Law, Governance and Islamic Society (ICOLGIS 2019)
PB  - Atlantis Press
SP  - 205
EP  - 209
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.200306.214
DO  - 10.2991/assehr.k.200306.214
ID  - Kosmanto2020
ER  -