Deciphering Developmentalism: A Legal-Economic Examination of Indonesia’s Administration

Abstract This paper analyses the development of Indonesia’s legal and economic frameworks from the Soekarno era through the presidency of Joko Widodo (Jokowi), with a focus on the intersection of legal reforms, investment policies, and developmentalism. Under President Soekarno, the legal framework reflected a nationalist approach that limited foreign investment, while the New Order era, although initially marked by economic growth, suffered from systemic corruption and inconsistent policy enforcement. The post-Reformasi era saw significant legal changes aimed at decentralization, but these efforts led to regulatory fragmentation and conflicting legal norms at the regional and central levels, undermining investment climate stability. Jokowi’s administration has continued the developmentalist agenda, emphasizing deregulation and debureaucratization to improve the legal and regulatory environment for investment. However, despite these legal reforms, challenges persist, including overlapping regulations and inconsistent legal implementation. Furthermore, Jokowi’s approach to developmentalism has raised concerns regarding the erosion of human rights protections and democratic principles, echoing historical patterns of legal and economic centralization. The paper concludes that, while legal reforms have made progress in facilitating investment, further harmonization and institutional strengthening of the legal system are necessary to achieve sustainable economic development while safeguarding democratic governance and human rights in Indonesia.