| dc.description.abstract | The enactment of Indonesia’s Job Creation Law (Law Number 6 of 2023) marked
a significant effort to enhance the country’s investment environment and attract
greater foreign direct investment (FDI). However, despite its objective of regulatory
simplification, the law has raised concerns regarding legal certainty, labour rights,
environmental protection, and the effectiveness of dispute resolution mechanisms.
This research explores how the Job Creation Law aligns with international
standards, particularly those established by the International Centre for Settlement
of Investment Disputes (ICSID). It assesses its impact on foreign investor
protection. This study analyses legal frameworks, international investment treaties,
and relevant secondary sources using a conceptual approach. The research
identifies critical gaps in the Job Creation Law, including the absence of
comprehensive investor-state dispute settlement (ISDS) provisions, inconsistent
regulatory enforcement, and potential risks related to labour flexibility and
environmental deregulation. To address these issues, the thesis proposes
harmonizing domestic investment regulations with BIT principles, strengthening
institutional mechanisms, and enhancing legal safeguards. The findings suggest
that while the Job Creation Law introduces important reforms, further alignment
with international norms is essential to provide legal certainty, promote sustainable
investment, and ensure balanced protection for investors and the host state. | en_US |
