The investment climate in Indonesia, after the issuance of the Investment Law and the demands of the ASEAN Economic Community in 2016 and in line with the Nawacita program of Joko Widodo, has made investors and the nation of Indonesia more active in the realization of economic independence by mobilizing the strategic sectors of the domestic economy. Efforts to increase local revenue have come by way of establishing Local-Owned Enterprises (Badan Usaha Milik Daerah/ BUMD in bahasa) to support the synchronization and objectives of regional autonomy. BUMD form, among others, Local Enterprise, Regional Development Bank and are pioneers of business activity. Some BUMD have low financial performance, so their function as a source of regional income is not achieved because the profit / profit given to the Provincial Government, City and Regency is very small or even a loss. One cause is the corruption done by BUMD itself. Therefore, this research is conducted in the framework of the development of regional investment through the transformation of the status of Local-Owned Enterprise into Public Local Entities or Private Local Entities as regulated further by the Law on Regional Government. This research is a legal research; the method used in this research is a statute approach by needing an empirical approach and case approach to support the issue.

Original languageEnglish
Pages (from-to)351-366
Number of pages16
JournalInternational Journal of Innovation, Creativity and Change
Issue number2
Publication statusPublished - 2019


  • Investment
  • Legal transformation
  • Local owned enterprise
  • Public and/or private entities


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