The Existence of Regional Investment Regulation System Based on Decentralization

Abstract

The act number 25, year 2007 had already been determined to spur investment growth in the region. In fact even though this law has been issued, the model of regional investment regulation still varies. Consequently investment growth of each region is not the same and it highly depends on local policies as well as local regulation on both licensing, and financing. The investment of decentralization so far has not been consistent yet; therefore, the implementation of investment in every region still varies and has an impact on uncertainty investment. Â The fact indicates that there are still some investment problems such as the case of MNR Company in Minahasa and the case of MSN Company. This research used formative law research method supported by field studies`. The results of the study show the model of regional investment regulation is still in dualism: Â the investment permit follows the model implemented by the central government with one door service, while the investment policy in the region follows the regional government in accordance with the spirit of regional autonomy. An arrangement of dualism investment impacts on investors who invest in an uncertain financing investment and security. For that reason, it is required the development of legal investment based on decentralization to accelerate the investment growth in North Sulawesi. To sum up, the dualism of the investment regulation model should be studied in a form of affirmation of macro and micro business investment in the division between the central and regional governments. To ensure the investments, the regional regulations in the field of investment protection are needed.