Investment Policy and Socio-Economic Transformation of Society

Abstract

Investment is one of the main instruments in driving economic growth and the change in society's social structure. This research aims to analyze the effectiveness and efficiency of national investment policy in encouraging socio-economic transformation, as well as identifying the challenges and urgency of implementing this policy based on the prevailing legal framework. Employing the normative juridical method, this study examines the legal substance of Law No. 25 of 2007 concerning Investment, Law No. 11 of 2020 concerning Job Creation, and Law No. 23 of 2014 concerning Regional Government. The analysis is conducted on the effectiveness of implementing legal norms, regulatory efficiency, and their impact on the socio-economic dynamics of society. The research results indicate that national investment policy has positively contributed to economic growth and social mobility, but its effectiveness is still limited by regulatory disharmony, weak institutional governance, and the unequal distribution of economic benefits. The biggest challenges in implementing this policy include the lack of synchronicity between central and regional policies, low bureaucratic capacity, and insufficient integration of social and environmental aspects in the investment process