Neo-Economic Colonialism? Examining the Omnibus Law, Foreign Direct Investment, and Indonesia’s Geoeconomic Direction on Investment

Abstract

This study discusses the issue of economic neocolonialism that has emerged in Indonesia’s investment policy following the enactment of the Job Creation Law. The research aims to examine the legal provisions in investment regulations that create legal uncertainty, weaken environmental protection, and open opportunities for foreign domination in strategic sectors. The method used is normative juridical, focusing on the analysis of legal provisions in laws and regulations related to investment, including the Job Creation Law and its implementing regulations. This research uses legal document studies to assess the consistency and impact of these regulations. The results show regulatory inconsistencies that cause legal uncertainty for business actors and investors. Environmental protection has also weakened due to deregulation that reduces the role of environmental supervisory institutions. In addition, investment policies open opportunities for foreign domination in strategic sectors, potentially threatening national economic sovereignty. The hastily made regulations have elicited negative responses from global investors, indicating a risk of declining trust in Indonesia’s investment climate. The discussion emphasizes that current investment policies have the potential to strengthen Indonesia’s dependence on global economic powers, thus giving rise to modern economic neocolonialism practices. Therefore, comprehensive evaluation and regulatory reform are needed to safeguard economic sovereignty, strengthen environmental protection, and create a consistent and reliable legal framework for investment. In conclusion, investment policy reform must be carried out carefully and sustainably so that Indonesia does not fall into neocolonial practices through foreign investment.

Keywords:  Economic neocolonialism, investment policy, investment climate, legal uncertainty, geoeconomics.