Safeguarding Foreign Investment from the Threat of "Disguised Execution"

The law must remain a protector, not a tool that can be misused for narrow interests. Jakarta (ANTARA) - Amid increasingly fierce global competition, building the trust of foreign investors is not an instant task. This step resembles a long process that demands consistency, credibility, and legal certainty maintained over time. In this context, the idea of safeguarding foreign investment from the threat of disguised execution or covert enforcement becomes relevant to read as both an alarm and a reflection on the state of law enforcement that directly intersects with the national investment climate. Investor confidence is not solely determined by market potential or resource availability, but also by how predictably a country’s legal system operates. Within the framework of Law and Economics theory, the law is not merely a normative instrument but also the foundation for economic stability. When courts can provide certainty, legal costs and uncertainty risks can be minimised. Conversely, when the law operates without meticulousness and caution, the impact is not only felt by a single business entity but spills over into the global perception of a country. In practice, one vulnerable point often highlighted is the use of bankruptcy instruments. Ideally, the bankruptcy mechanism serves as a measured exit route for companies facing financial difficulties. This effort should be part of a rational exit strategy in a modern economic system. However, in several cases, this instrument shifts function to become a tool of pressure that can cripple companies that are actually still productive. This phenomenon is not new. Past experiences, such as those that occurred with the Krama Yudha Group, demonstrate how careless legal processes can cause systemic impacts. At that time, the Supreme Court had to intervene to rectify a forced bankruptcy case amid an unresolved dispute. That case became an important lesson that judges are not only required to understand formal documents but also to read the context and potential bad faith behind legal applications. That lesson apparently has not yet fully become a solid foundation. What happened to PT Dua Kuda Indonesia has again raised the same concerns in a more complex form. This oleochemical manufacturing company, which has operated since 2006 in the KBN Marunda industrial area and has an export network to the United States and Europe, was suddenly declared bankrupt based on a debt claim said to have been settled. Disguised Execution