A Legal Analysis of Legal Certainty for Foreign Investment in Indonesia Following the Enactment of the Job Creation Law

This study aims to analyze the legal certainty of foreign investment in Indonesia before and after the enactment of the Omnibus Law on Job Creation, as well as to examine the harmonization between Law Number 25 of 2007 on Investment and Law Number 6 of 2023 as the most recent regulatory framework reshaping Indonesia’s investment law regime. Legal certainty constitutes a fundamental element in establishing a stable, predictable, and competitive investment climate; however, in practice Indonesia continues to face multiple challenges, including regulatory overlap, bureaucratic complexity in licensing procedures, and disharmony between central and regional regulations. Employing a normative juridical method combined with a comparative approach, this research analyzes primary, secondary, and tertiary legal materials to identify legal principles, regulatory structures, and substantial changes introduced by the Job Creation Law. The findings reveal that although Law 25/2007 provides a strong normative foundation for legal certainty, equal treatment, asset protection, and dispute settlement mechanisms, its practical implementation remains hindered by inconsistent enforcement and sectoral regulatory fragmentation. The Job Creation Law introduces significant reforms through risk-based licensing (OSS-RBA), the abolition of the Negative Investment List, and strengthened institutional coordination, thereby enhancing administrative legal certainty and ease of doing business for foreign investors. Nevertheless, several implementation challenges persist, particularly concerning regional government readiness, inconsistencies among implementing regulations, and gaps between legal norms and empirical practice. This study concludes that the Job Creation Law substantially strengthens the legal certainty of foreign investment in Indonesia; however, its effectiveness ultimately depends on regulatory harmonization, consistent policy execution, and institutional capacity-building at both the central and regional levels.