Kewajiban Divestasi Saham Terhadap Penanaman Modal Asing Sektor Pertambangan Pt Vale Sebagai Bentuk Control Of Host State Pemerintah Indonesia

Abstract

Foreign Direct Investment (FDI) is a form of investment originating from abroad and is widely utilized by developing countries, including Indonesia, as an alternative source of funding to support development and enhance national economic growth. However, FDI practices often face issues of national sovereignty, as many believe that such investments gradually erode the power and authority of the host country. In the context of Indonesia, some parties argue that FDI activities in the mining sector contradict the 1945 Constitution, which asserts that the control over natural resources must fully rest in the hands of the state. This research aims to analyze the role of the Indonesian Government in its capacity as the host state's regulator of FDI practices, with a particular focus on investments made by PT VALE. The method applied in this research is a normative juridical approach, which includes an analysis of legislation and doctrines regarding host state control in the context of FDI. The findings of this study indicate that the Indonesian Government has instruments to monitor and control foreign investments in the mining sector through regulations mandating share divestment, which must be followed by all foreign investors, including PT VALE. Furthermore, the study also discusses how the implementation of the share divestment regulations is carried out and how effectively these regulations reflect the host state control by the Indonesian Government over FDI by PT VALE in the mining sector. This study aims to provide deeper insights into the dynamics between foreign investment and national sovereignty in Indonesia.