Role of Divestment: Realizing Welfare Indonesian

Abstract

Divestment is the sale of a business carried out by a company, which is the opposite of investment. Based on this definition, this study aims to determine whether divestment can contribute to creating an Indonesian welfare state. The results of the study show Indonesia's welfare state; one of its characteristics can be seen in the state constitution as stipulated in Article 33 Paragraph 3 of the 1945 Constitution regarding land, water, and natural resources that are in its territory and controlled by the state to achieve the goal of realizing prosperity for its people. In an attempt to realize the Indonesian welfare state, mineral and coal mining forces foreign companies to divest through Article 112 of Law No. 3 of 2020 concerning mineral and coal mining regarding the divestment and acquisition of shares in Article 8 of Law No. 25 of 2007 concerning investment