In connection with the order to attract investors in and outside the country, regional investment destination should have a better appeal than the other regions. This appeal, can take the form political policies are friendly, the laws that are applicable, as well as a relatively stable social dynamics, in addition to other resources owned by investment destination in itself.
If the author examines the Law No. 25 Year 2007 on Investment, it is seen that the government's political policies and laws that will be built, is the policies and laws hostile to the investors and the local social environment, because when reviewing Article 3 as the principles and objectives that explain investment, investments made in the Republic of Indonesia should be based on the principle of legal certainty, transparency, accountability, equal treatment which does not distinguish the origin of the state, togetherness, efficiency equitable, sustainable, environmentally sound, independence and the principle balance economic progress and national unity. Thus, the investment that has been done, can meet the investment objectives themselves. Such aims to boost national economic growth, create jobs, promote sustainable economic development, enhance business competitiveness nationally, increasing capacity and technological capabilities nationwide, encourages community economic development, economic cultivate potential into real economic strength, and aims to improve the welfare society.
When reviewing the opinion Cheryl W. Gray regarding the prerequisites for a legal system to function well in a market economy, the legal system must have three prerequisites that need to be addressed: 1
1. Availability of law that is friendly to the market (market-friendly laws);
2. The existence of institutions that are able to effectively implement and enforce the relevant laws;
3. The need of the market makers on law and legislation in question.
Problems less attraction of the investors in and outside the country, is really just a barrier to creating a market friendly legal systems in developing countries, such as the establishment of law in developing countries are facing problem to execute simultaneously on all three stages of development of the law relating to political through which modern industrial nations, the stage unification, industrialization phases and stages of social welfare.2
The constraints in the third stage run by countries that are developing, can further be explained as berikut.3
1. Problems that occur on stage unification, political integration is the problem of a society or a unitary state formation.
2. The problems that occur in stages of industrialization, the problem is economic modernization and political struggle, and at this stage the government is required to serve as a driver of growth in the new elite, as professionals in the fields of industry and promote the principles of capital accumulation.
3. Social welfare issues at this stage, the problem is related to a shift in the role of government to be the protectors of the people of the industry life violence agenda welfare programs.
The third stage above an approach first proposed by Thomas M Franck and Organski.4
According to the authors, three (3) stages as a barrier to the entry of foreign investors can be right, but the authors also share similar views with opinions from Satjipto Rahardjo who explained that, "the law can be classified into the driving factors that can give a boost to first time systematically in line with expectations ".5 Therefore, the main obstacle in attracting investors lies in the legal ability to organize, direct, and nurture every political policy, social dynamics, and other obstacles. Consistent with this opinion, in accordance with the opinions expressed by Mochtar Kusumaatmadja, who explained that "the law as a means of development".
Explanation above, has focused on the application of methods of economic analysis of law, or that is generally known as the "Economic Analysis of Law". This method came into existence through thought utilitarianism Jeremy Bentham (1789), who examine how people act systemically dealing with legal incentives and evaluate their results according to measures of social welfare (social welfare). Bentham's utilitarianism thought laws were scattered in his writings in the form of an analysis of the criminal law and its enforcement, the analysis of property rights (legal ownership), and 'substantial treatment' on legal processes.
The thoughts expressed by Bentham above, is more developed in the early 1970s, after the birth of the ideas of Ronald Coasei (1960), with an article that discusses the problem of externalities and legal responsibilities; Becker (1968), with an article that discusses crimes and law enforcement; Calabresi (1970), with his book on accident law, and Posner (1972), with a text book titled "Economic Analysis of Law" and publishing "Journal of Legal Studies" .6
Broadly speaking, the use of economic analysis of law applying its approach to contribute thoughts on two basic issues concerning the rule of law, the analysis is 'positive' or 'descriptive', with respect to the question of what the effect of legal rules on behavior behavior of the person concerned (the identification of the effects of a legal rule), and the analysis is 'normative', with regard to the question whether the effect of the rule of law in accordance with the wishes of the people (the social desirability of a legal rule). Therefore, the economic analysis of law, is closely related to two basic problems, the approach commonly used in the economic analysis in general, which explains the behavior, both human individuals and companies, the forward-looking (forward looking) and rational, as well as the economic well-being adopted framework to test the desire society.7
Completion:
To attract foreign investors should be active in promoting what became our country's potential and must have three prerequisites that need to be considered as above, namely:
1. Availability of law that is friendly to the market (market-friendly laws);
2. The existence of institutions that are able to effectively implement and enforce the relevant laws;
3. The need of the market makers on law and legislation in question.
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