Oversee Investment and Indonesia Economic Regulatory Reformin the Era of Globalization and Industrial Revolution 4.0

Abstract

Thisstudyexplains the policies affecting the current Indonesianlaws with respect to global investment. Globalization was able to push and change complex laws, thereby, providing significant influence towards its development in accordance with the claims brought by countries all over the world. Therefore, political and legal policies need to be analyzed to fit the formation of the law related to global developments in accordance with Indonesia's legal principle.The current study used a qualitative and conceptual approach. The method was chosen to obtain information,  data, and to analyze the focus of the problems studied with regard to the development of legislation influenced by capitalism in the era of globalization, especially in Indonesia.In Indonesia, the influence of globalization is in the additional demands of the national legal system adjustment, the country’s law on various legal issues alleviation must be completed. This is not only in line with the national grand design but also involves several rules on departmental centric policy regulations, thereby, losing orientation in the use of legal principles.In taking policies, the government often cannot freely determine its policies on natural resources optimally for the prosperity of the people. Therefore, legal sovereignty needs to be strengthened to determine legal policies independently in accordance with the principles of the Indonesian nation. Sovereignty and welfare are two aspects that cannot be separated from each other and the state must be able to overcome market failures that result in injustice.Law reform is the effort utilized to radically change a legal system, which consists of a way of thinking required on the legislation. The Indonesian government must develop a socio-economic paradigm from the spirit of the Preamble and the 1945 Constitution of the Republic of Indonesia. The political economy is realized which creates a balance between the trends of etatism and the market economy. Ideologically and normatively, this economic policy determines the "social justice", "general prosperity" and "the greatest benefit of the people" as the main joints of the economic system that should be carried out.