Abstract:
Investment always includes risk factors to af ect investment development and it
can change the Indonesian economy. Foreign investors also strive to avoid losses due
to political risk. Governments of the countries should guarantee the protection of
foreign investment from possibility of political risk. Therefore, this study examines
what are the political risks faced by direct investment investors. Researchers use
certain legal theories as the analysis basis to find answers of study problem. The
theories used are Legal Protection Theory, Certainty Law Theory, Investment Theory,
and Insurance Theory. The approach method used is normative juridical. This study
uses 4 approaches, namely the statutory approach, conceptual approach, case
approach, and comparative approach. This study is descriptive analysis to express the
overall symptoms of investigated aspects to explain the conditions. Political risk is the
change in political environment that can have a detrimental effect on the value of
company’s business activities (Grif in, Ricky: 212). Assessment of Political Risk Map
is done by the RGE method (Roubini Global Economics) (Roubini, 2014: 14). Roubini
Global Economics (RGE) is an independent research company, the maker of global
macroeconomic strategies developed by Roubini, a well known economist. RGE
method has six risk measures, namely: Exchange Transfer, Non-Sovereign Payment, Political Interference, Supply Chain Disruption, Legal and Regulatory Risk and
Political Violence.
