Consistency of Law No.25/2007 on Investment with Article 33 of the 1945 Constitution of the Republic of Indonesia in Realizing Social Justice and People's Welfare (A study with a Positivism-Normativism approach)

Abstract

Investment is very important for development with the aim of growing the national economy and improving people's welfare. Investment in Indonesia is regulated in Law No. 25 of 2007 concerning Investment (UUPM) which is a regulation that was launched with a policy of attracting large investments. However, there has not been a significant increase in people's welfare, even though Indonesia's natural resources have enormous potential and should be more than sufficient. The state regulates the economy through the economic constitution, Article 33 of the 1945 Constitution of the Republic of Indonesia, therefore regarding investment in the field of natural resources related to the Investment Law, this legal factor needs to be investigated to find out the factors that become obstacles in its objectives. The study was conducted by studying and analyzing the structure, principles, and objectives of the Investment Law. Economic Constitution of the Republic of Indonesia (Article 33) is the basis and source of the economic legal arrangements under it. Whether the Investment Law is in accordance with Article 33 needs to be proven because through Article 33 the legal norms that underlie the prosperity and welfare of the people through the economy have been determined, called justice. The UUPM normatively must be in accordance with the Article 33, therefore the it needs to be tested. UUPM has principles that are determined as the basis and as a benchmark as well as functioning in conformity assessment with Article 33, tested using the positive-normative approach to conclude its consistency. Findings, in UUPM there is the principle of "togetherness", the principle is almost the same as "together with the principle of kinship" in Article 33 but the meaning is different so that through positive-normative testing the value is different because it is different in its goals and policies, so it will be different in its implementation.  In conclusion: UUPM only textually in accordance with the principles of Article 33; but the values are different, normatively inconsistent and therefore unable to realize the prosperity and welfare of the people. It is recommended to implement the UUPM in accordance with the principles and values contained in Article 33.