Legal Risk in Foreign Investment Indonesia: Why Land and Governance Matter More Than Compliance
Introduction Foreign investment in Indonesia continues to expand across strategic sectors such as mining, plantations, infrastructure, and energy. The country’s economic potential, supported by natural resources and market growth, has attracted increasing international capital. However, alongside these opportunities, foreign investors frequently encounter legal risks that are not immediately apparent at the planning stage. While regulatory compliance and licensing are often prioritized, they do not fully reflect the complexity of legal exposure within Indonesia’s investment environment. This article examines how legal risk in foreign investment Indonesia is shaped not only by formal regulations, but also by structural factors related to land governance and institutional coordination. Land-Based Investment and Structural Exposure Many of Indonesia’s key economic sectors depend heavily on land utilization. Mining, plantations, infrastructure, and industrial development all require...