The Position of Foreign Investment in the Indonesian Economic System Based on Pancasila and the 1945 Constitution of the Republic of Indonesia

• Published in: Journal of Law and Sustainable Development Vol. 11; no. 12; p. e2007
• Main Authors: Barus, Sabari, Ginting, Budiman, Saidin, Nasution, Faisal Akbar
• Format: Journal Article
• Language: English
• Published: 12.12.2023
• ISSN: 2764-4170; 2764-4170
• DOI: 10.55908/sdgs.v11i12.2007

Objective: This research aims to find arguments (theories) to ensure that foreign direct investment does not conflict with but is in accordance with the values of Pancasila and the provisions of the 1945 Constitution of the Republic of Indonesia.   Conceptual foundation: Each country in the world cannot isolate itself but must establish relationships and work together to achieve the good of those countries. Robert Jackson and Georg Sorensen said that each other's countries are independent and have sovereignty. But they are not estranged from each other. They are adjacent to and influence each other and side by side and opposite each other. Therefore, complete separation of one country from another is not an option. A country that is isolated and disconnected from other countries will usually suffer.   Method: This research is normative juridical using conceptual, statutory, and historical approaches. The legal materials used are primary legal materials and secondary legal materials, which are collected systematically according to the issues of concern in this research and the collection technique uses literature study, then the problems are analyzed qualitatively.   Result and conclusion: Foreign direct investment has a position as part and complement of the Indonesian economic system because its existence is in accordance with the values contained in Pancasila and the 1945 Constitution of the Republic of Indonesia. Contribution: The results of this research convince and invite the Indonesian people that the presence of foreign direct investment in the Indonesian economic system no longer needs to be debated, but accept foreign direct investment as a complement and encourage growth and realize the welfare of the Indonesian people in accordance with the Preamble to the Constitution of the Republic of Indonesia.