COPYRIGHT LAW AND INVESTMENT IN INDONESIA: A LEGAL BRIDGE

The nexus between investment and intellectual property often intersects with the international movement of capital. A robust legal structure is essential in comprehending potential issues, particularly concerning copyrights, which is one of the most frequently utilized intellectual property rights systems within the Indonesian economy. Consequently, this study seeks to pinpoint the elements linking these two notions within the framework of copyright regulations. Findings indicate that specific challenges may result in protracted and intricate administrative processes, as revealed through normative legal research methodologies. Concurrently, a thorough analysis employing the statutory approach reveals that these challenges stem from normative constraints, which may deter investors from engaging in the Indonesian economic landscape.


A. Introduction
Investment is a crucial aspect of life that enables individuals to generate profits through different activities. 1 There are multiple forms of Investments, including capital, physical assets, and intellectual or human capital which are fundamentally intended to facilitate business growth and profit scaling in benefitting the market and stakeholders. 2Therefore, investment is widely acknowledged as essential to the economic growth of any country. 3It can lead to long-term productivity by enhancing economic competitiveness. 4vestment is also interdependent on other aspects of the economy, and a prime example is the vicious cycle of poverty theory, which according to this theory, low income results in reduced savings, investment, and productivity. 5e significance of investment is multiplied in a developing country like Indonesia, which is close to realizing its potential after the success story of China's economy.There was a significant capital investment in China's economy, which led to its rapid growth through substantial domestic savings and foreign investment. 6Currently, Indonesia is in a favorable position 1 Indanazulfa Qurrota A'yun, Rifki Khoirudin, and  Center for the New South, no.May (2019).Indonesia was one of the countries responsible for the rise of foreign investments in China during 1979-1996, which was encouraged by ancestral ties compared to China, owing to its openness to foreign investment resulting from a non-aligned international stance.The stability obtained after Global Financial Crisis projects Indonesia as one of the first countries to experience economic growth. 7 Numerous significant factors contribute to the growth of an economy and often encourage investment.The intersection of these factors highlights the pivotal role that investment plays in an economic system.From an economic perspective, investment provides capital and possibilities to several businesses.
Meanwhile, from a developmental perspective, it encourages improvement in many aspects of businesses to enhance competition among businesses operating in the same market.It is crucial to adopt a holistic perspective and understand the intricacies of the economy in order to comprehend the significance of investment within its appropriate context.National and multinational firms can have an enormous impact, and owners of enterprises may be subjected to a wider range of obligations than private property. 8To achieve this objective, of Chinese Indonesian investors and the appeal of long-term profits.See Haishun Sun, Foreign  Investment and Economic Development in China: 1979-1996, Foreign Investment and Economic  Development in China: 1979-1996, 2018, https  58, no. 3 (2021), https://doi.org/10.1111/joms.12660.whichhas gained increasing attention from business academics, practitioners and policymakers.It argues that there are fundamental reasons for reconceptualizing the purpose of business in the future which derive from the changing nature of business and the market failures to which it gives rise.It suggests that regulation is proving increasingly inadequate at correcting market failures, and the traditional separation between economic efficiency and distribution that underpins policy formulation is untenable.Instead, the article sets out how appropriately defined notions of corporate purpose can help to promote not only better social outcomes but also enhanced functioning of firms and markets.It describes a set of principles that provide a comprehensive framework for reforming business around credible commitments to corporate purpose.The reformulation of the corporation has profound implications for the macroeconomic performance of economies as well as the microeconomics of firms and markets.","author":[{"droppingparticle":"","family":"Mayer","given":"Colin","non-dropping-particle":"","parse-names":false,"suffix":""}],"container-title":"Journal of Management Studies","id":"ITEM-1","issue":"3","issued":{"date-parts":[["2021"]]},"title":"The Future of the Corporation and the Economics of Purpose","type":"article-journal","volume":"58"},"uris":["http://www.mendeley.com/documents/?uuid=3b702e3f-d32b-3d1b-8c87-c2a200e98735","http://www.mendeley.com/documents/?uuid=58b098f5-8962-49e7-bf54-daa0d0361ed0","http://www.mendeley.com/documents/?uuid=22749dea-efd2-44a3-9974-f29a203b7eb1"]}],"mendeley":{"formattedCitati on":"Colin Mayer, "The Future of the Corporation and the Economics of Purpose," <i>Journal of Management Studies</i> 58, no. 3 (2021 it is imperative to conduct a thorough analysis using a robust investment activity management framework.This framework can aid in determining the appropriate directions, methods, means, and forms of investment to enhance production efficiency and increase an organization's profitability. 9Investors can analyze critical factors that will influence their relationship with investees and the impact of investments on businesses through the utilization of the framework. It is crucial to acknowledge that investment possesses certain limitations even though the academic consensus regarding the significance for economic growth is predominantly positive. 10The main limitation comes from the investee, which is responsible for the formation of the investment.Therefore, it is important to determine the balance between the amount of investment received and the benefits for the businesses, by maintaining the responsibility of the investors and investees. 11In addition, investment may be constrained by national security concerns or policy regulations.These limitations may not necessarily impede productivity and growth from the government's perspective since they are often justified by various legal justifications.The worsening investment climate in Indonesia has made it difficult to achieve programs to accelerate development and improve community welfare.At the same time, challenges in the digital era are also growing, where Indonesia can no longer be entangled in formal procedures for long.Based on this, the only way out is to simplify and uniformize regulations quickly.Therefore, the government wants to prepare a system to simplify and speed up the import-export process through the implementation of the National Logistic Ecosystem (NLE). 1213vestment needs legal certainty to protect both the interests of investors and investees.It is imperative to ensure that individuals whose livelihoods depend on a specific topic can exercise their rights without infringing upon the rights of others.A constitutional state, also known as a 'rechtsstaat,' is governed by the rule of law.14 Indonesia is a rechtsstaat and this is reflected in the existing laws and regulations of the legal system, where almost all aspects of social life are regulated and governed.The government can utilize the law to regulate and impose discipline upon society, thereby promoting greater orderliness.It is imperative that legal implications arising from investments be governed with thoroughness, where businesses may benefit and the economy may not be negatively impacted.
Investment and copyrights are intricately interwoven, as enterprises that generate innovative works will undoubtedly desire to enroll their creations to ensure the security of proprietary privileges.In addition, investment can be manifested in the form of copyrights or any other type of intellectual property, regarded as valuable assets. 15In this research, the focus of the discussion and analysis will be limited to copyrights as an intellectual property rights (IPRs) system and its linkages to the conception of investment from a legal perspective. 16Even though both topics have their distinct legal frameworks, there is a pressing need for an analysis of the overlapping issues.Investment and copyrights laws govern different facets of economic activity, hence their interdependence is significant.This is because investment serves as a crucial catalyst for economic development and innovation.Therefore, this research explores the relationship between investment and copyrights laws, with a focus on their interaction to promote economic growth and protect the rights

B. Legal Implications of Investment and Importance of Legal Certainty
Indonesia is a country with ambitious economic plans influencing every governmental decision on governing the subjects.Its endeavors aim to emerge as a prominent economic powerhouse in Southeast Asia and strive to position as one of the world's largest economies in the foreseeable future.The term "Indonesia 2045" has gained popularity among the general public and within academia circles.Numerous studies have been conducted to analyze the country's potential in realizing these ambitious goals.
These ambitions may seem overwhelming to many people, but they are justifiable.Even though the expansion of the Indonesian economy is not an absolute indication of its success, valuable insights can be offered into the feasibility of the country's aspirations.
the interests of investors and investees.The provision of legal support for economic development entails a crucial component known as legal certainty.
Furthermore, the significance of ensuring legal certainty for investment cannot be overstated.The concept denotes the principle that investors ought to be assured of the predictability and stability of the legal framework in the country of investment. 20Therefore, investors should be able to rely on the laws and regulations of a country, as well as on the consistent application by the government and its agencies.
One of the primary justifications for the expediency of establishing legal certainty for investments is that it constitutes a crucial element in soliciting both foreign and domestic investment.Foreign investors, in particular, are more inclined to invest in a nation where they have assurance in the predictability and stability of the legal framework. 21This holds particularly true for substantial and enduring investments, such as infrastructure projects or natural resource development.In the absence of legal certainty, foreign investors may exhibit reluctance to invest or may demand elevated returns to mitigate the augmented risk.Legal certainty assumes paramount significance for foreign investors since predicting all the variables that could influence their assets is challenging.Therefore, having legal certainty would undoubtedly augment the confidence of foreign investors in committing their capital to a specific country with a robust legal framework.
Regarding domestic investment, a dependable economy with robust purchasing power does not necessarily ensure an influx from the Indonesian economy. 22Considering the evidence that Indonesian investors have showcased their potential to significantly contribute to the economic advancement of There is an additional imperative to provide legal certainty for investments to foster economic growth and development.By establishing a stable business environment, legal certainty enables companies to plan for the future and make long-term investments. 24Furthermore, legal certainty can promote competition and innovation, as companies can invest with confidence, knowing that the legal framework will not change unexpectedly. 25From this perspective, the interests of investors and investees can be safeguarded because legal certainty directly impacts how businesses are managed and affects the level of economic returns generated from an investment.This notion is reinforced by economic concepts such as Return on Investment (ROI) and Return on Equity (ROE).
Moreover, ensuring legal certainty for investments is crucial to safeguard the rights of investors.The laws and regulations of a country must be unambiguous and consistent, and they should be enforced impartially and fairly.Therefore, investors should be able to rely on the legal system to protect their rights and resolve disputes fairly and efficiently.Ensuring impartiality is especially crucial in the realm of significant and intricate investments, as disputes are likely to emerge.It is noteworthy to emphasize the term "impartial" in this context, as it underscores the paramount significance of equity in all legal proceedings on domestic or foreign investments. 26Although foreign investments may offer additional capital, particularly in challenging economic conditions, it is imperative to recognize that domestic investments should not be deemed inferior.
Moreover, legal certainty is also important in the context of international investment based on the principle of reciprocity.Therefore, a country should provide the same level of protection and treatment to foreign investors.
This principle is reflected in the many bilateral and multilateral investment agreements signed on a global scale.This notion also highlights the significance of impartiality within a legal system concerning investment frameworks.It is crucial to ensure that foreign investors do not perceive any bias towards policies that may favor domestic investments, leading to asset nationalization.
The matter of ensuring legal certainty for investments holds significant relevance for the Indonesian economy.According to the data provided by BPS, foreign direct investment (FDI) has served as a crucial funding source for the country's economic growth.In 2020, the overall FDI inflow amounted to IDR 489.1 trillion (equivalent to approximately 34.5 billion USD), representing 2.9% of Indonesia's GDP.However, this figure experienced a 1.6% decline as compared to the preceding year, primarily attributable to the impact of the 27 Organisation for Economic Co-operation and Development," OECD Economic Surveys: Indonesia 2021" (OECD, 2021): 10, https://doi.org/10.1787/fd7e6249-en.althoughlarge-scale fiscal stimulus and monetary support limited its depth and impact.The approval of an ambitious package of structural reforms, covering labour laws, taxes and ease of doing business, testifies of the authorities' commitment to attract high-quality investment that will enhance wealth and wellbeing.This is key at a time when Indonesia embarks in trade and investment liberalisation through the Regional Comprehensive Economic Partnership with East Asia and Oceania partners, with new opportunities and challenges.Nevertheless, the pandemic leaves behind strong headwinds.
This is due to several factors, including a lack of consistency in regulations and policies, as well as transparency in the decision-making process.These problems are seen as an obstacle by many investors, both domestic and foreign, and will eventually affect their investment decisions.
To tackle the issues, the government of Indonesia must take measures to enhance legal certainty on investments.Specifically, a robust conceptual framework should be developed to simplify and streamline investmentrelated regulations.This can be achieved through enacting new legislation or revising existing laws and regulations.The processes can facilitate the country's economic growth and attract capital from both domestic and foreign sources. 28Additionally, the government also needs to take steps to improve the transparency and predictability of the decision-making process, by publishing regulations and policies promptly and providing clear explanations.
The issue of providing legal certainty for investments is particularly relevant for the Indonesian economy in attracting foreign investment during the post-pandemic era.Despite the efforts in enacting the omnibus law (Law No. 11 of 2020 on Job Creation), there remains a pressing need to comprehensively analyze all aspects impacting the investment climate.
Therefore, the government needs to improve the legal certainty for investments and address the constraints to support economic growth and development in Indonesia.

C. Bridging the Concept of Investment and Intellectual Property
The concept of investment and intellectual property (IP) are closely intertwined, as both are important for promoting economic growth and development.Investment refers to the allocation of resources, such as capital, time, and effort to the production of goods and services.On the other hand, intellectual property is the legal rights that protect the creations of the mind, such as patents, trademarks, and copyrights.The combination of investment and IP plays a crucial role in promoting innovation, creativity, and competitiveness in the global economy.Therefore, Protection is one of the essential means of safeguarding the interests of investors who have invested in the development or creation of a product.
The linkage between investment and IP is primarily through the protection of IPRs.IPRs establish the legal framework enabling individuals and corporations to invest in the development, production, and commercialization of new products and services. 29For example, patents provide exclusive rights to inventors and innovators, to recoup their investments and earn a return on research and development (R&D) efforts. 30Similarly, trademarks and copyrights provide exclusive rights to the creators and owners of brands and creative works to monetize their investments in these areas.Legal systems worldwide must carefully examine these links between investment and IP to develop appropriate regulations that support both the investors and investees involved in the trade.The relationship is more relevant when legal proceedings are considered. 31reover, investment and IP also play a role in promoting innovation and competitiveness.Investments in R&D and innovation are essential for the development of new products and services, and for the improvement of existing ones. 32Intellectual property rights provide an incentive for companies and individuals to invest in R&D and innovation to recoup their investments through the exclusive rights provided by IPRs.Furthermore, IP also aids companies in safeguarding their investments in R&D and innovation from being replicated by others, thus encouraging competition and innovation.It ensures that all parties involved in the creation, including investors, receive the deserved benefits through the respective IPR regime. 33 is important to once again recognize the pivotal role of investment and intellectual property rights within the framework of the global economy.
Industries that are heavily reliant on intellectual property, such as the pharmaceutical, software, and entertainment sectors, have been consistently demonstrated to serve as catalysts for economic growth and progress.The nature of these industries necessitates substantial investment in research and development, as well as in the realm of innovation, and the protection of intellectual property rights must be secured to recoup these investments and foster further growth.Moreover, industries that highly value intellectual property have been shown to demonstrate higher levels of productivity. 34This increased productivity can result in higher wages for workers and a broader range of economic opportunities.
Investment and IP also play an important role in the context of international trade.Intellectual property rights are an important aspect of international trade agreements to promote the protection and enforcement of IPRs.This is particularly important for countries seeking to attract foreign investment and promote exports of IP-intensive products and services.Furthermore, IPRs also play an important role in the protection of foreign investments by providing a legal framework for the protection of investments from unauthorized use or However, it must be acknowledged that the relationship between investment and intellectual property rights is not free of challenges.One of the most significant challenges lies in striking an equilibrium between providing incentives for innovation and guaranteeing access to the fruits of these endeavors for the general public. 33This balance is of utmost significance regarding matters of public health for access to life-saving medicines.The sector is not the sole domain subject to significant impact resulting from the protection of intellectual property.However, the criticality, which serves the public underscores the pressing need for an improved intellectual property rights framework.The implementation and enforcement of these rights can pose a formidable challenge, particularly in nations that are still in the process of development, where the legal and institutional infrastructure may be insufficient or inadequate. 36Therefore, the challenges require ongoing examination, attention, and remediation, to ensure that the delicate balance between investment and intellectual property rights is maintained and the interests of all stakeholders are properly served.
The relationship between the concepts plays a crucial role in promoting economic growth and development.Investment in R&D and innovation, along with the protection of IPRs, provide incentives for companies and individuals to invest in the development, production, and commercialization of new products and services.Furthermore, the emphasis placed on safeguarding the concepts frequently overshadows the significance of protecting creations that may not necessarily be innovative.These issues call for a holistic approach to improve the legal framework, especially to protect the diverse aspects of the Indonesian economic system relying on manufacturing and innovation, as well as other parts of the creative industry to enter the global market. 37 Additionally, IP also plays a role in promoting innovation and competitiveness within the Indonesian and global economies.v04.i05.007.Investment is its blood and sometime body needs adequate blood for being healthy, we have to bring it from other body, means if an economy need to run with well health, investment is necessary for it and has to bring from other countries, which is called Foreign Investment.In the era of globalization and financial integration, Foreign Investment has emerged as one of the most the connection between investment and copyrights in Indonesia.For example, there is a lack of recognition for the value of copyrights, which may result in widespread piracy and the undervaluation of creative works. 39There may also be limited access to capital and other resources, such as technology and skilled labor, which may constrain the connection.The legal culture for copyrights still faces problems due to the lack of regulations concerning the digital world, particularly in e-commerce, which is one of the most crucial elements of the economy. 40

E. Conclusion
The connection of investment with copyrights in the Indonesian legal framework is a multifaceted and complex issue due to normative restrictions.
The current legal framework contains provisions that hinder the harmonization of investment and copyright laws.Therefore, investing in the creative industries poses a significant challenge, such as the complicated mechanism for registering copyrights from other countries, which may be challenging for foreign investors who are unfamiliar with the Indonesian legal system.The lengthy and bureaucratic process of registering copyrights can be a deterrent to investment and result in significant delays in the commercialization of creative works.To address these issues, there is a need for a comprehensive review of creators and investors.Copyrights as one of the most common forms of intellectual property right, with its legal basis, can be analyzed to obtain the relation with the framework of investment, in the context of the Indonesian legal system.This research employs the normative legal method to examine the intersection of investment and copyright laws, with the ultimate goal of establishing a cohesive link and creating a more conducive legal environment for growth.To facilitate the analysis, statutory approach is employed, which entails scrutinizing the current laws and regulations and formulating a framework of normative construction.This framework addresses the gaps in the Indonesian legal system by establishing a conceptual and normative connection between investment and copyright protection.Therefore, the present study employs secondary data, namely Law No. 25 of 2007 on Investment and Law No. 28 of 2014 on Copyrights.

Covid
implemented several policies and laws to attract foreign investment, such as Law Number 25 of 2007.This law aims to provide a more conducive investment climate by simplifying the procedures for investment, as well as protecting the rights of investors.Furthermore, it establishes the Investment BKPM which serves as a one-stop service for investors and simplifies the process of obtaining the necessary permits and licenses.Despite these endeavors, the investment climate continues to confront several challenges, including legal uncertainty.As highlighted in a report by the Organisation for Economic Co-operation and Development (OECD), legal uncertainty represents one of the numerous constraints that affect investment. 27 Indonesia on Bridging the Concept of Investment with Copyrights The connection between investment and copyrights is an essential component of economic development, particularly in the creative industries.The Indonesian legal framework, as governed by Law No. 25 of 2007 and Law No. 28 of 2014 on Investment and Copyrights, imposes several normative restrictions.Therefore, this study examines the normative restrictions in the Indonesian legal framework limiting the connection between investment and copyrights and analyzing the relevant articles or clauses in both laws.One of the normative restrictions is the lack of legal certainty around the basic conceptualization of intellectual property rights in Investment Law.This requirement is specified in Article 8 paragraph (3), where "Investors are given the right to make transfers and repatriations in foreign currency.This includes payments made in the context of technical assistance, fees related to engineering and management services, disbursements under project contracts, and remuneration for intellectual property rights.Despite the mention of intellectual property, this legal obstacle proves rather complicated for investors as it fails to provide any clarity on the relationship between IP and investments.The issue is particularly important when Article 18 of the Copyrights Law is considered.Article 18 stipulates that the copyrights of book creations, written works, songs, and music, with or without text, which are sold or transferred indefinitely, shall revert to the creator after 25 (twentyfive) years from the agreement date.Payments through foreign exchange do give more flexibility for investors, 38 but the missing aspect of this mechanism Competitiveness to Encounter Global Market," Journal of Business & Finance in Emerging Markets 1 (November 2018): 89-196, https://doi.org/10.32770/jbfem.vol1189-196.38 Pawan Kumar Gupta, "The Impact of Foreign Investment on India Economy," International Journal of Technical Research & Science 4, no. 5 (2019): 45-49, https://doi.org/10.30780/ijtrs.
of the current legal framework.This should include a thorough examination of the provisions in Law No.25/2007 and Law No. 28/2014, to reconcile   any conflicting provisions in line with international standards.Furthermore, the government can also play an important role in this process by providing clear guidance and information to investors, and by ensuring that the laws are effectively enforced.It is essential to increase awareness among stakeholders of the importance of copyright protection for investment through education and training programs and by promoting best practices.The government can Suripto, "Increasing the Investment Capacity of the Indonesian Diaspora," Asian Journal of Community Services 1, no. 2 (2022): 71-74, https:// doi.org/10.55927/ajcs.v1i2.1037. 2 Umanskyi, Illia."Effectiveness of international investment projects (on the basis of Service Plus, LLC)," (PhD diss., Private Higher Educational Establishment-Institute "Ukrainian-American Concordia University"), 2022. 3 Hamid R Davoodi, Peter Montiel, and Anna Ter-Martirosyan, "Macroeconomic Stability and Inclusive Growth," IMF Working Papers, 2021.monetary,macroprudential, and exchange rate 4 Sigue Moussa, "Impact of Road Infrastructure Investments on the Structural Competitiveness of the Burkina Faso Economy," International Journal of Economic Behavior and Organization 8, no. 3 (2020), https://doi.org/10.11648/j.ijebo.20200803.13. 5 Chantel De Vos, Lawrence Ogechukwu Obokoh, and Babatunde Abimbola Abiola, "Determinants of Savings among Non-Ricardian Households in South Africa," International Journal of Social Economics 47, no.11 (2020), https://doi.org/10.1108/IJSE-11-2019-0692. 6 Marcus Vinicius De Freitas, "Reform and Opening up: Chinese Lessons to the World," Policy 17According to the Central Bureau of Statistics (BPS), the policies made by the government to provide convenience for investors are commendable.This can be seen from the investment target set 18 Despite the ongoing Covid-19 pandemic, BKPM had recorded an investment summed IDR 901.0 trillion in 2021.This accumulated investment value has surpassed the government's national medium-term development plan (RPJMN) target of IDR 858.1 trillion.Notably, the realization for PMDN in 2021 reached IDR 447.06 trillion, representing an 8.11 % increase compared to the previous year. 19ese statistics demonstrate the robust economic attractiveness of the Indonesian economic system, and the numbers are poised to grow even more significantly as Indonesia enters the post-pandemic era in 2023.The promise of prosperity behind the positive statistics during the pandemic era underscores the remarkable resilience of Indonesia's economy.A noteworthy aspect of the data is the equitable distribution of domestic (PMDN) and foreign investment (PMA).This balance is indicative of Indonesia's economy being attractive to a diverse range of investors, irrespective of origin or nature.It is a reasonable assertion that investment ranks among the topmost priorities, particularly given the country's ambition to actualize the Indonesia 18 Badan Pusat Statistik, "Laporan Perekonomian Indonesia 2022"(Jakarta, September 16, 2022),  112.19 Ibid, 113.