Kedaulatan Regulasi di Tengah Kompetisi Investasi: Studi Perbandingan Model Host State Control Indonesia dan Malaysia

Innes Gustina Gracia Siburian

Abstract


This study examines how Indonesia and Malaysia exercise host state control over foreign direct investment (FDI) between 2020 and 2026 and identifies where each state locates its principal point of control. Employing normative legal research with statutory, conceptual, and functional comparative approaches, the study compares four instruments: regulatory control, investment facilitation, fiscal incentives, and investor protection. The analysis finds that Indonesia places control at the point of entry and along the value chain through business field classification, minimum investment thresholds, risk-based licensing, and domestic processing obligations for minerals. Malaysia places control at the level of activity licensing and incentive eligibility through the Industrial Co-ordination Act 1975, sectoral equity conditions, and the promotional role of the Malaysian Investment Development Authority (MIDA). The study further shows that two external developments narrow the policy space of both states: the WTO panel report in DS592, which confronts export-based performance requirements, and the global minimum tax in force since 2025, which erodes the leverage of tax holidays. The study concludes that both countries differ in the locus and instruments of control rather than in the existence of control itself, and it proposes four principles for balanced host state control: proportionality of restrictions, measurable conditionality of incentives, institutional coherence, and consistency with international obligations.


Keywords


host state control, foreign direct investment, right to regulate, investment facilitation, global minimum tax, Indonesia, Malaysia.

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DOI: https://doi.org/10.5281/zenodo.22892229

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