Investment System on Badung Regency in Political Economy Perspective

  • I Nyoman Subanda , Ida Bagus Raka Suardana, Panudiana Kuhn


Conceptually the terms investment and investment look different but in essence have the same meaning. Law No. 25/2007 concerning capital investment stated that investment is all forms of investment activities, both domestic investment and foreign capital, to conduct business in the territory of the Republic of Indonesia. The spirit of the law on investment is already quite good in the context of simplifying the process so that the investment climate in the regions is better. However, the reality on the ground does not always go well as mandated by the law. To improve the investment climate in Badung Regency, there are some important points encountered in this study, both in the form of constraints, convenience, and opinions that develop in the community. With a descriptive qualitative research design and analysis tool from a political economy perspective, there are several important points generated from this research. In the view of the regional government, the behavior of investors who are not cooperative, it does not follow the existing procedures, and the unwillingness of investors to carry out their obligations is an obstacle to the investment climate. While from the perspective of investors the lack of bureaucratic professionalism, unclear rules, transactions under the table, and informal levies from the community are factors that interfere with investors in carrying out their investments. In the view of investors, the factors that strengthen the intention to invest are high market opportunities, a good natural, environmental and cultural factors, as well as guarantees from trustworthy supra-local public officials. The impact of existing investments has a positive implication on original income, community welfare, and development progress.