ECONOMIC AND SOCIO-ENVIRONMENTAL ANALYSIS OF THE APPLICATION OF DIVESTMENT OBLIGATIONS FOR FOREIGN INVESTORS IN SEMARANG CITY Dr. Agus Saiful Abib, S.H., M.H, Dr. Dhian Septiandani, S.H., M.H, Dharu Triasih, S.H., M.H, Dhian Indah Astanti, S.H., M.H
Faculty of Law, Semarang University
Abstract
The purpose of this study is to analyze the application of divestment obligations for foreign investors in Semarang City from the perspective of Economic Analysis of Law and its impact on the economic and social aspects of society. This study uses a normative legal method with a legislative, historical, and analytical approach, as well as a descriptive analytical method with secondary data obtained through a literature review of regulations, doctrines, and investment law literature. The results show that the divestment policy is capable of strengthening the role of domestic investors, increasing regional income, and opening up opportunities for partnerships between local and foreign businesses, but its effectiveness is not yet optimal due to bureaucratic constraints, regulatory inconsistencies, and weak supervision. From a social perspective, foreign investment has a positive impact in the form of increased employment and technology transfer, but it also causes social inequality and changes in the economic structure of local communities. Therefore, derivative regulations at the regional level, strengthening of investment supervisory institutions, and inclusive partnerships between foreign investors and MSMEs are needed so that divestment policies can run efficiently, fairly, and sustainably for the welfare of the community.
Keywords: Keywords: Economic Analysis, Social Environment, Foreign Investors
Topic: Governance, Policy, and Education of Coastal Area
