Law No. 25 of 2007 Concerning Investment.

This Law is enacted to increase investment for making the economic potential into the real economic strength by using capitals originating from both domestic and overseas, and to create investment climate whose nature is conducive, promotive, legally certain, impartial, and efficient, by continuously considering the interest of national economy.
Investment shall be organised based on the principle of: a. legal certainty; b. openness; c. accountability; d. the equal treatment without discriminating the country of origin; e. togetherness; f. impartial efficiency; g. sustainability; h. environmental friendly; i. independency; j. balance of progress and national economic unity (Art. 3). Article 4 sets up the basic policy of investment. Government shall stipulate the basic policy of investment for: a. encouraging the creation of conducive national business climate for investment in order to strengthen the competitiveness of national economy; and b. accelerating the increase of investment. In making the basic policy, the Government is: a. to provide the same treatment to any domestic and foreign investors, by continuously considering the national interest; b. to warrant legal certainty, business certainty, and business security to any investors since the licensing process up to the end of investment activity pursuant to the rules of law; and c. to give opportunity for development and to give protection to micro, small, and medium-sized enterprises, and cooperatives. According to Article 5, domestic investment may be in form of corporation, non-corporation, or individual business, in accordance with the rules of law; any foreign investment shall be in form of limited liability company based on the law of the Republic of Indonesia. Unless otherwise stipulated in the law, any investment companies shall obtain permit before making any business activity in accordance with the regulations issued by relevant authorised agency (Art. 25).
Special economic zones may be specified and developed for accelerating economic development in certain regions. The Government shall have the authority to stipulate separate investment policy in such special economic zones.
The Law further makes provisions, inter alia, for: business field, employment practices, dispute settlement, sanctions.