Investment dynamics in the emerging market: COVID-19 influence

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Abstract

The COVID-19 pandemic had a tangible impact on Indonesia’s economy to a 4.5% economic growth contraction (Husnulwati & Yanuarsi, 2021). To analyze the dynamics of investment in the emerging market and the effects of COVID-19 associated with the work creation law in Indonesia. This study is research in the field of law with an empirical legal research approach. The Job Creation Law provides simplifications, especially concerning business licensing and investments that can be made starting from the micro, small and medium enterprises (MSME) level. The COVID-19 pandemic can be interpreted as momentum for Indonesia to attract more investors. The world economy has had significant changes, especially in exports and imports, coupled with the trade war between China and the United States (Sumarni, 2020). Still, several things must be paid attention to, namely: the long-term effect of investment after the amendment of investment provisions in the water, electricity, weapons, and defense business sectors; and the formulation of implementing regulations in the Job Creation Law because so far, Indonesia has been known to be slow in formulating laws and regulations.

Keywords: Investment Policy, Economic Growth, COVID-19, Job Creation, Indonesia

Authors’ individual contribution: Conceptualization — S.U.A. and Y.J.U.; Methodology — T.A. and S.U.A.; Formal Analysis — S.U.A.; Resources — Y.J.U.; Writing — Original Draft — S.U.A.; Writing — Review & Editing — T.A.; Supervision — Y.J.U.; Project Administration — S.U.A.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

Acknowledgements: The Authors give their gratitude to Universitas Diponegoro for supporting this research.

JEL Classification: K00, K1, K2, K31, I18, N4

Received: 22.03.2022
Accepted: 16.09.2022
Published online: 20.09.2022

How to cite this paper: Asmara, T., Arimuladi, S. U., & Utama, Y. J. (2022). Investment dynamics in the emerging market: COVID-19 influence. Journal of Governance & Regulation, 11(4), 90–102. https://doi.org/10.22495/jgrv11i4art9