OVERVIEW

With the majority of its industrial and business sectors experiencing rapid development in recent times, Indonesia is transforming into a key and significant player in the global economy. The ongoing challenge is to find a balance between making the nation an attractive place for investors to expand their businesses and provide for the flow of large scale foreign investment. At the same time putting appropriate limits on and managing such foreign investment that will gain importance with the upcoming commencement of ASEAN Economic Community (AEC).[1]

Like all sovereign states, Indonesia must give due consideration to protecting its national interests against foreign parties whose objectives may be more profit than social orientation. While in principle Law No. 25 of 2007 on Investment (“Investment Law”)[2] ensures equal treatment for every investor in Indonesia, foreign investors are required to comply with all applicable laws and regulations in force in Indonesia.[3]