Electronic Theses and Dissertation

-

ABSTRACT Farah Faizah: THE OBSCURITY OF LEGAL BASIS OF FOREIGN DIRECT INVESTMENT FOR DIGITAL BUSINESS IN INDONESIA: LESSON LEARNED FROM SINGAPOREAN LAW Faculty of Law Syiah Kuala University (vi, 64), pp., bibl., tabl. Dr. Azhari, S.H., MCL, MA. With the current development of globalization, Foreign Direct Investment (FDI) is a very important capital element for Indonesia as a developing country. It provides a new color for Indonesia’s business development with the phenomenon of internet-based buying and selling services, in-demand and financial digital services. However, Investors in digital business investment sometimes experience a number of problems when investing, which cause a large number of impact on investment activities that are not optimal for them. This study aims to scrutinize how the legislative of Indonesia regulates the legal basis of FDI for digital business in Indonesia; to analyze the obscurityof legal basis of FDI for digital business in Indonesia; and to explain on the lesson learned from Singaporean law about digital business so it could be a reference for Indonesia to apply similar enforcement. This research was conducted using normative-juridical research methods. Normative-juridical legal research is researching library materials or research on secondary data, namely researching library materials or research on secondary data. The data for this normative juridical research consists of primary legal materials, secondary legal materials, and tertiary legal materials. This study concluded that the lack of clear legislation governing invest- ments in digital business in Indonesia has caused a number of serious illicit investment cases, varies from financial activities involving the purchase of assets, questionable financial activity, cash transactions, and international money transfers. Learning from how Singaporean government regulates various industries through strict licensing procedures that use both qualitative and quantitative standards. This could be implied for Indonesia to encourage a consultative approach between foreign investors and the regulatory organizations. It is suggested that the legislative of Indonesia should essentially conduct multiple analyses of the FDI on digital business they are pursuing, both fundamentally and technically. It is necessary to anticipate free riders in the market who take advantage of this legal obscurity to deceive the public by checking business entity permits to legal institutions that provide relevant permits. The government should be able to collaborate together with such regulators and law enforcers in order to prepare statutory regulations related to this investment in digital business, such as The National Police, Bappebti, Ministry of Finance, Financial Service Authority (OJK), and Bank Indonesia (BI).